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Chapter 8Analyzing Business Markets and Business Buying Behaviorby PowerPoint by Milton M. Pressley University of New Orleans Kotler on Marketing Many businesses are wisely turning their suppliers and distributors into valued partners. Chapter Objectives In this chapter, we focus on six questions: What is the business market, and how does it differ from the consumer market? What buying situations do organizational buyers face? Who participates in the business buying process? What are the major influences on organizational buyers? How do business buyers make their decisions? How do institutions and government agencies do their buying? What is Organizational Buying? Organizational buying The business market versus the consumer market Business market Fewer buyers Larger buyers Close supplier-customer relationship Geographically concentrated buyers What is Organizational Buying? Derived demand Inelastic demand Fluctuating demand Professional purchasing What is Organizational Buying? Several buying influences Multiple sales calls Directed purchasing Reciprocity Leasing What is Organizational Buying? Buying Situations Straight rebuy Modified rebuy New Task Systems Buying and Selling Systems buying Turnkey solution Systems selling Participants in the Business Buying Process The Buying Center Initiators Users Influencers Deciders Approvers Buyers Gatekeepers Key buying influencers Multilevel in-depth selling Figure 8-1: Major Influences on Industrial Buying Behavior Major Influences on Buying Decisions Environmental Factors Organizational Factors Purchasing-Department Upgrading Cross-Functional Roles Centralized Purchasing Decentralized Purchasing of Small-Ticket Items Internet Purchasing Major Influences on Buying Decisions Other Organizational Factors Long-Term Contracts Vendor-managed inventory Continuous replenishment programs Purchasing-Performance Evaluation and Buyers’ Professional Development Improved Supply Chain Management Lean Production Just-in-time Ma
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