Chapter_6MKT - Chapter 7 Individual people make purchases...

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Chapter 7 Individual people make purchases to satisfy their needs, so do organizations. more goods and services are purchased by business and organizational customers than by final consumers. Yet, more goods and services are purchased by government buyers than by all other business and organizational customers. Ie: a government buyer purchasing a new desk for the mayor's office; a woman buying cookware to sell to her friends and neighbors; a wholesaler buying a delivery truck. the Red Cross buying office supplies; a sporting goods retailer buying skis; a law office buying a background music service; a country club buying tennis balls for a tournament. Referred to as the industrial market, business-to-business (B2B) market. Business and organizational customers buy for resale or to produce other goods and services. 4 main categories: 1. Manufacturers 2. Middlemen (intermediaries): wholesalers and retailers. 3. Government units, at the federal, state, and local levels, as well as foreign governments. 4. Nonprofit organizations, including both national and local organizations. Often easier to define customer needs in business markets. Organizations buy for a basic purpose: buy goods/services to help them meet the demand for the goods/services that in turn supply to their markets. Buyers are less emotional in buying behavior than consumers. More economic Small differences are important. tend to focus more on quality, economy, dependability and exacting purchase specifications. Purchasing specifications—written/electronic descriptions of what the firm wants to buy. Ie: the product grade; the brand name; the part number Specifications describe the needs Concentrate on quality certification in making purchases. rely on many sources of information in addition to salespeople when making purchase decisions. ISO 9000 quality procedures. When a salesperson calls on a new business prospect, (s)he may have trouble identifying all of the buying center members; usually must see the purchasing manager first; the probability of encountering a gatekeeper is high. Purchasing managers are specialists in buying activities. fewer in number;
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This note was uploaded on 03/29/2012 for the course BUSINESS S 4302 taught by Professor None during the Spring '11 term at University of Houston - Downtown.

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Chapter_6MKT - Chapter 7 Individual people make purchases...

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