Chapter 6 Notes
Organizational Markets and Buyer Behavior
The Nature and Size of Organizational Markets
: marketing to firms, governments, or not-for-profit organizations.
-Important to understand the characteristics of organizational buyers and their buying behaviors.
: manufacturers, wholesalers, retailers, and government agencies that buy
goods and services for their own use or for resale.
-Buy telephones and computers for their own use.
-Buy raw materials, manufactures parts, supplies, business services.
-Divided into three different markets: industrial, reseller, government markets.
Reprocess a product or service they buy before selling it again to the next buyer.
takes money from depositors, reprocesses it, “sells” it as loans to
First four types: manufacturers, mining, construction, farms/timber/fisheries.
Sell physical products.
sells legal advice, auto repair, dry cleaning.
Other markets: finance, insurance, real estate, transportation, communication.
Wholesales and retailers that buy physical products and resell them again without any
Government units are federal, state, and local agencies that buy goods and services for
the constituents they serve.
Measuring Industrial, Reseller, and Government Markets
North American Industry Classification System (NAICS)
: provides common industry
definitions for Canada, Mexico, and the United States.
Designates industries with a numerical code in a defined structure.
Six-digit coding system.
Characteristics of Organizational Buying
Consumer demand for a product or service is affected by their price and availability and
by consumers’ personal tastes and discretionary income.
Industrial demand is derived.