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Lecture Principles of Marketing - Chapter 6: Business markets and business buying behavior

Lecture Principles of Marketing - Chapter 6 presents the following content: Business markets, business buyer behavior, the business buying process, E-procurement: buying on the internet, institutional and government markets. | Chapter Six Business Markets and Business Buying Behavior 1 Business Markets and Business Buying Behavior Business Markets Business Buyer Behavior The Business Buying Process E-Procurement: Buying on the Internet Institutional and Government Markets Topic Outline 2 Business buyer behavior refers to the buying behavior of the organizations that buy goods and services for use in production of other products and services that are sold, rented, or supplied to others. Business buying process is the process where business buyers determine which products and services are needed to purchase, and then find, evaluate, and choose among alternative brands Business Markets 3 Business Markets Market Structure and Demand Derived demand Business demand that ultimately comes from (derives from) the demand for consumer goods. inelastic demand; that is, the total demand for many business products is not much affected by price changes, especially in the short run. A drop in the price of leather will . | Chapter Six Business Markets and Business Buying Behavior 1 Business Markets and Business Buying Behavior Business Markets Business Buyer Behavior The Business Buying Process E-Procurement: Buying on the Internet Institutional and Government Markets Topic Outline 2 Business buyer behavior refers to the buying behavior of the organizations that buy goods and services for use in production of other products and services that are sold, rented, or supplied to others. Business buying process is the process where business buyers determine which products and services are needed to purchase, and then find, evaluate, and choose among alternative brands Business Markets 3 Business Markets Market Structure and Demand Derived demand Business demand that ultimately comes from (derives from) the demand for consumer goods. inelastic demand; that is, the total demand for many business products is not much affected by price changes, especially in the short run. A drop in the price of leather will not cause shoe manufacturers to buy much more leather unless it results in lower shoe prices that, in turn, will increase the consumer demand for shoes. fluctuating demand. The demand for many business goods and services tends to change more—and more quickly— than the demand for consumer goods and services does. A small percentage increase in consumer demand can cause large increases in business demand. Sometimes a rise of only 10 percent in consumer demand can cause as much as a 200 percent rise in business demand during the next period. buyer and seller are often much more dependent on each other. B-to-B marketers may roll up their sleeves and work closely with their customers during all stages of the buying process—from helping customers define problems, to finding solutions, to supporting after-sale operation. They often customize their offerings to individual customer needs. 4 Business Markets Decision Process More complex More decision participants More professional purchasing .