1. The Characteristics of Organization Buying Behaviour
Part two

2. Organizational Buying
When a marketing firm develops a marketing mix that it can use to approach business customers, it should understand the decision making process in organizations
Organizational buying may be defined as the decision making process by which firms establish what products they need to purchase and identify, evaluate, and select a brand and a supplier for those products
Business markets are different than consumer markets and components that matter include:
Number of Buyers
Location of Buyers
Demand Characteristics
Buying Criteria
The Formal Buying Process and Centralized Purchasing
Characteristics and Relationships

3. Buying Criteria
Compared to consumers, businesses and industries purchases are rational and practical
While consumers may buy stuff for emotional reasons, industries buy based on quality, price, and service
Central to the buying process in organizations is a vendor analysis
A vendor analysis rates potential suppliers on:
Price
Quality
Service and Services Offered
Continuity of Supply

4. Formal Buying Process
While in some businesses one person has the authority to sign off on purchase orders, most use many individuals to make purchases
First businesses often use buying committees which brings individuals together to share the responsibility of making a purchase decision
Production and Engineering
Financing
Marketing
Second businesses hold meetings with multiple informed people who makes decisions. This group is known as a buying center
Users
Influencers
Buyers
Deciders

5. Centralized Purchasing
Today, buying organizations are looking for the best possible prices in order to compete with each other
Many firms, therefore, have begun to create centralized purchasing systems in order to secure better discounts based on volume purchases
Example: Hudson’s Bay Company
The Bay, Zellers, and the Bay are all owned by HBC
The companies buy huge quantities from single vendors in order to lower prices for them
Automatic computering has now made purchases automatic
When customers buy something the computer recognizes this and if inventory is too low new supplies are automatically ordered

6. Characteristics and Relationships
While businesses do not have personalities, the people inside them do
Marketers therefore get to not the attitudes a company gives off and tries to align there message with the purchaser
Other strategies include getting to know the people in the businesses and selling to them
Currently, B2B selling is changing as most current owners (baby boomers) are being replace by a new generation who view life differently
Most importantly, businesses try to focus on creating relationships and keeping current customers