1. Chapter 7 Analyzing Business Markets & Business Buying Behavior
Marketing Management
Tenth Edition
Philip Kotler

2. Objectives How Business & Consumer Markets Differ
Organizational Buying Situations
Participants in the Business Buying Process
Major Influences on Organizational Buyers
Business Buyer Decision Making
Institutional & Government Buying

3. Business vs. Consumer Markets
Fewer buyers
Larger buyers
Close supplier-customer relationship
Geographically concentrated
Derived demand
Inelastic demand
Fluctuating demand

4. Business vs. Consumer Markets
Professional purchasing
Several buying influences
Multiple sales calls
Direct purchasing
Reciprocity
Leasing

5. New Task Buying Modified Rebuy Straight Rebuy
Custom furniture
Installed components
Buildings
Weapon systems
Involved Decision Making
New vehicles
Elec. Equip
Consultants
Computer equip.
Modified Rebuy
Straight Rebuy
Utilities
Office Supplies
Bulk chemicals

6. Participants in the Business Buying Process
Users
Initiators
Influencers
Gatekeepers
Buyers
Deciders
Approvers

7. Major Influences on Industrial Buying Behavior
Level of
demand
Economic
outlook
Interest rate
Rate of techno-
logical change
Political and
regulatory
developments
Competitive
Social responsi-
bility concerns
Environmental
Objectives
Policies
Procedures
Organizational
structures
Systems
Interests
Authority
Status
Empathy
Persuasive-
ness
Interpersonal
Age
Income
Education
Job position
Personality
Risk attitudes
Culture
Individual
Business
Buyer

8. Organizational Factors
Purchasing-
Department
Upgrading
Cross-
Functional
Roles
Centralized
Purchasing
Decentralized
Purchasing
of Small
Ticket Items
Internet
Purchasing
Long-Term
Contracts
Purchasing-
Performance
Evaluation &
Pro. Buyers
Lean
Production

9. Info Search/ Eval Purchase Post Purchase
Problem Recognition
Need
Recognition
General Need Description
Product Specification
Info
Search/
Eval
Supplier Search
Proposal Solicitation
Supplier Selection
Purchase
Order Routine Specification
Post
Purchase
Performance Review

10. Institutional Markets
Low Budgets
Captive Patrons

11. Government Markets Domestic Suppliers Cost Minimization Paperwork
Open Bids
Public Review

12. Review How Business & Consumer Markets Differ
Organizational Buying Situations
Participants in the Business Buying Process
Major Influences on Organizational Buyers
Business Buyer Decision Making
Institutional & Government Buying