When you finish chapter 7, you should: Know who the business and organizational customers are, see why multiple influence is common in business and organizational purchase decisions and understand how it affects the practice of marketing, understand the problem-solving behaviour of organizational buyers, know the basic methods used in organizational buying,. | Chapter 7: The Buying Behaviour of Business and Organizational Customers Exhibit 7-1 7-2 The following is a summary of the characteristics of business to business markets when compared to consumer markets: Sales volume Greater Smaller Purchase volume Larger Smaller Number of buyers Fewer Many Size of individual buyers Larger Smaller Location of buyers Geographically concentrated Diffuse Buyer-seller relationship Closer More impersonal Nature of channel More direct More indirect Nature of buying More professional More personal Nature of buying influence Multiple Single Type of negotiations More complex Simpler Use of reciprocity Yes No Use of leasing Greater Smaller Primary promotional method Personal selling Advertising Source: Bingham, ., Jr., and Raffield, ., Business to Business Marketing Management, Irwin, 1990. Characteristic Business to Business Market Consumer Market Business vs. Consumer Buying 7-3 Different Types of Customers All business and organizational customers Producers Intermediaries Governments Nonprofits Manufacturers Farms, mines, etc. Financial Institutions Other providers National Local Federal Provincial and Local Wholesalers Retailers Exhibit 7-2 Summary Overview Business and organizational customers are any buyers who buy for resale or to produce other goods and services. As a category, there are important differences between how businesses and organizations make purchase decisions versus how individual consumers make those decisions. These differences are important to marketers. Characteristics of Business and Organizational Buying Different Types of Customers. As Exhibit 7-1 illustrates, businesses and organizations are in turn different from each other. Marketers need to keep these differences in mind when developing their own marketing mix. Buying for a Basic Purpose. Most organizations make purchases for the same basic reason: they buy goods and services that will help them meet the demand for the goods and services that they in | Chapter 7: The Buying Behaviour of Business and Organizational Customers Exhibit 7-1 7-2 The following is a summary of the characteristics of business to business markets when compared to consumer markets: Sales volume Greater Smaller Purchase volume Larger Smaller Number of buyers Fewer Many Size of individual buyers Larger Smaller Location of buyers Geographically concentrated Diffuse Buyer-seller relationship Closer More impersonal Nature of channel More direct More indirect Nature of buying More professional More personal Nature of buying influence Multiple Single Type of negotiations More complex Simpler Use of reciprocity Yes No Use of leasing Greater Smaller Primary promotional method Personal selling Advertising Source: Bingham, ., Jr., and Raffield, ., Business to Business Marketing Management, Irwin, 1990. Characteristic Business to Business Market Consumer Market Business vs. Consumer Buying 7-3 Different Types of Customers All business and organizational customers .
