LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 6, YOU SHOULD BE ABLE TO:
Distinguish among industrial, reseller, and government organizational markets.
Describe the key characteristics of organizational buying that make it different from consumer buying.
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Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.LO 6-2LEARNING OBJECTIVES (LO)AFTER READING CHAPTER 6, YOU SHOULD BE ABLE TO:LO 6-1Distinguish among industrial, reseller, and government organizational markets.Describe the key characteristics of organizational buying that make it different from consumer buying.6-*LO 6-4LEARNING OBJECTIVES (LO)AFTER READING CHAPTER 6, YOU SHOULD BE ABLE TO:LO 6-3Explain how buying centers and buying situations influence organizational purchasing.Recognize the importance and nature of online buying in industrial, reseller, and government organizational markets.6-*BUYING IS MARKETING TOO! PURCHASING PUBLICATION PAPER FOR JCPENNEY6-*THE NATURE AND SIZE OF ORGANIZATIONAL MARKETSLO 6-1Business MarketingOrganizational BuyersIndustrial Markets (Industrial Firms)Reseller Markets (Resellers)Government Markets (Government Agencies)Global Organizational Markets Retailers Wholesalers6-*FIGURE 6-A Type and number of organization establishments in the U.S.: 20076-*MEASURING DOMESTIC AND GLOBAL INDUSTRIAL, RESELLER, ANDGOVERNMENT MARKETSLO 6-1North AmericanIndustry ClassificationSystem (NAICS)North American Free Trade Agreement (NAFTA)6-*FIGURE 6-1 NAICS breakdown for the information industries sector: NAICS code 516-*FIGURE 6-2 Key characteristics and dimensions of organizational buying behavior 6-*CHARACTERISTICS OFORGANIZATIONAL BUYINGLO 6-2Derived DemandSize of Order or PurchaseNumber of Potential BuyersOrganizational Buying ObjectivesProfitsEfficiencyWomen/MinoritySuppliers/VendorsEnvironment/Sustainability6-*MARKETING INSITESupplier Diversity is a Strategic Initiative at AT&TLO 6-26-*CHARACTERISTICS OFORGANIZATIONAL BUYINGORGANIZATIONAL BUYING CRITERIALO 6-2ISO 9000Supplier DevelopmentOrganizational Buying Criteria6-*FIGURE 6-B Key organizational buying criteria6-*CHARACTERISTICS OFORGANIZATIONAL BUYINGBUYER-SELLER RELATIONSHIPS & SUPPLY PARTNERSHIPSLO 6-2Supply PartnershipSustainable ProcurementReciprocity6-*MARKETING MATTERSMilsco Mfg.—Delivering a Great Ridefor Customers’ SeatsLO 6-26-*MAKING RESPONSIBLE DECISIONSSustainable Procurement for Sustainable GrowthLO 6-2Starbucks6-*CHARACTERISTICS OFORGANIZATIONAL BUYINGTHE BUYING CENTERLO 6-3Buying CenterBuying CommitteePeople in the Buying CenterRoles in the Buying CenterUsersInfluencersBuyersDecidersGatekeepers6-*CHARACTERISTICS OFORGANIZATIONAL BUYINGTHE BUYING CENTERLO 6-3Buy ClassesStraight RebuyModified RebuyNew Rebuy6-*FIGURE 6-3 The buying situation affects buying center behavior in different ways 6-*CHARACTERISTICS OFORGANIZATIONAL BUYINGSTAGES IN THE ORGANIZATIONAL BUYING PROCESSLO 6-3Organizational Buying BehaviorInformation SearchAlternative EvaluationPurchase DecisionPostpurchase BehaviorProblem Recognition6-*FIGURE 6-4 Comparing the stages in a consumer and organizational purchase decision process6-*CHARACTERISTICS OFORGANIZATIONAL BUYINGBUYING A MACHINE VISION SYSTEMLO 6-3Problem RecognitionMake-Buy DecisionInformation SearchValue Analysis6-*CHARACTERISTICS OFORGANIZATIONAL BUYINGBUYING A MACHINE VISION SYSTEMLO 6-3Alternative EvaluationBidder’s ListPurchase DecisionPostpurchase Behavior6-*FIGURE 6-5 Product and supplier selection criteria for buying machine vision equipment emphasize factors other than priceAn optic component in a largermachine vision system for soft drink cansPercentage of machine vision buyersciting individual selection criteria6-*ONLINE BUYING INORGANIZATIONAL MARKETSLO 6-4Prominence of Online Buyingin Organizational MarketsE-marketplacesOnline Auctions in Organizational MarketsTraditional AuctionReverse Auction6-*MARKETING MATTERSeBay Means Business for EntrepreneursLO 6-46-*FIGURE 6-6 How buyer and seller participants and price behavior differ by type of online auction 6-*TREK: BUILDING BETTER BIKES THROUGH ORGANIZATIONAL BUYINGVIDEO CASE 66-*