MKTG (CHAPTER 3)

• Industrial markets


  Organizations that require goods and services for the purpose of producing goods or services
• Production output of industrial firms

  Sold for profit
• Reseller markets


  Organizations that buy goods and services, which they later sell at a profit
• Government markets


  Government agencies that buy products and services for use in the production of public goods and services
• Government markets


  • National
  • Regional
  • Provincial
  • Municipal
• Nonprofit organizations


  Nongovernmental organizations that serve their customers but do not have profits as organizational goal
• Organizational buying behavior


  • Unique characteristics regarding demand, potential buyers, buying objectives, buying criteria, size of order or purchase, buyer-seller interaction, and the buying center
• Kinds of buying process

  • Straight rebuy
  • Modified rebuy
  • New task buying
• Straight rebuy


  Routine repeat purchase when previous purchase satisfactory
• Modified rebuy


  Items purchased remain the same, but the members of the buying center are not satisfied with the product
• New task buying


  Organization has a new need and the buyer wants a great deal of information
• Participants in organizational buying process

  • Users
  • Influencers
  • Deciders
  • Approvers
  • Buyers
  • Gatekeepers
• Users


  Those that will use the product or service
• Influencers


  Persons who influence the buying decision
• Deciders


  Persons who make decisions on product requirements and suppliers
• Approvers


  Persons who authorize the proposed actions of deciders or buyers
• Buyers


  Authorized to select the supplier, and arrange the terms of purchase
• Gatekeepers


  Have the power to prevent sellers or information from reaching members of the buying center
• Purchase decision-making process in organizations


  1. Recognition of a problem or need

  2. Search for information about products and suppliers

  3. Evaluation and selection of supplier

  4. The purchase

  5. Performance evaluation and feedback