1. Chapter 7 Organizational Buyer Behavior of Group Market
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

2. Characteristics of Business Markets
Nature of the Buying Unit
Business purchases involve more buyers.
Business buying involves a more professional purchasing effort.
Salespeople must have knowledgeable and create value through their consultative advice.
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

3. Participants in the Organizational Buying Process
Factors
Situational
Unexpected
Users
Influencers
Ethical
Decision-Making Unit of a Buying Organization is Called Its Buying Center.
Deciders
Roles Include
Attitudes of
Others
Approvers
Buyers
Gatekeepers
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

4. Major Influences on Organizational Buyers
Environmental
Economic
developments
Supply
Conditions
Technological
change
Political and regulatory
Competitive
Developments
Culture and customs
Organizational
Objectives
Policies
Procedures
Structure
Systems
Interpersonal
Authority
Status
Empathy
Persuasiveness
Individual
Age
Education
Job Position
Personality
Risk Attitudes
Buyers
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

5. The Organizational Buying Process
Stage 1. Problem Recognition
Stage 2. General Need Description
The Organizational Buying Process
Stage 3. Product Specification
Stage 4. Supplier Search
Stage 5. Proposal Solicitation
Stage 6. Supplier Selection
Stage 7. Order-Routine Specification
Stage 8. Performance Review
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

6. Organization Buying on the Internet
Organizational buyers may purchase electronically by:
Electronic data interchange links (EDI)
The Internet
Connecting to customers to:
Share marketing information,
Sell products & services,
Provide customer support, and’
Maintain on-going relationships.
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

7. Hotel Market Segments Conventions - associations - 2-5 years out
Association meetings
Corporate meetings
Incentive travel
SMERF, social, military, educational, religious, fraternal
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

8. Hotel Market Segments
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

9. Incentive Travel Excellent facilities and good destination important
High revenue per person
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

10. SMERF
Social, military, educational, religious, and fraternal organizations
Price sensitive
Can book slow periods
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

11. Corporate Meetings Short lead time-can be as short as one month
Food and beverage important
Ability to conduct serious meeting important
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

12. The Corporate Account Rate Amenities-Health club, paper, breakfast
Quick check-in and check-out
Airport transportation
Business center important for upper management
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458