Chapter 6 Notes - Marketing Reading Chapter 6 Notes...

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Marketing Reading Chapter 6 Notes Organizational Markets and Buyer Behavior The Nature and Size of Organizational Markets Business marketing : marketing to firms, governments, or not-for-profit organizations. -Important to understand the characteristics of organizational buyers and their buying behaviors. Organizational buyers : 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. Industrial Markets Reprocess a product or service they buy before selling it again to the next buyer. Example: Bank takes money from depositors, reprocesses it, “sells” it as loans to borrowers. First four types: manufacturers, mining, construction, farms/timber/fisheries. o Sell physical products. Services market sells legal advice, auto repair, dry cleaning. Other markets: finance, insurance, real estate, transportation, communication. Reseller Markets Wholesales and retailers that buy physical products and resell them again without any reprocessing. Government Markets 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. o Designates industries with a numerical code in a defined structure. Six-digit coding system. Characteristics of Organizational Buying Demand Characteristics Consumer demand for a product or service is affected by their price and availability and by consumers’ personal tastes and discretionary income.
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