ĐẠI HỌC FPT CẦN THƠ

Chapter 6
Business Markets and
Business Buyer Behavior
 Learning Objectives

<Business Markets and Business Buyer Behavior> 2

 Business
Markets

Institutional
Business
and
Government Business Buyer
Behavior
Markets
Markets and
Business
Buyer
Behavior

Engaging
The Business
Business
Buyer
Buyer with
Decision
Digital and
Process
Social MKT

<Business Markets and Business Buyer Behavior> 3

 [Link]

Textbook p.182
<Business Markets and Business Buyer Behavior> 4
 Business
Markets

Institutional
Business
and
Government Business Buyer
Behavior
Markets
Markets and
Business
Buyer
Behavior

Engaging
Business The Business
Buyer with Buyer Decision
Digital and Process
Social MKT

<Business Markets and Business Buyer Behavior> 5

 Business Markets

Business markets differ from consumer

markets in:

1. Market structure and demand

• Fewer and larger buyers
• Geographic concentration
• Derived demand (Inelastic &
Fluctuating)
• Buyer and seller dependency.

<Business Markets and Business Buyer Behavior> 6

 Business Markets

2. Nature of the buying unit (more

decision participants and a more professional
purchasing effort → Therefore, companies
must have well-trained marketers, salespeople,
and digital support personnel to deal with these
well-trained, technology-oriented buyers.)

3. Types of decisions and the

decision-making process
▪ Face more complex buying decisions
▪ Tend to be longer and more formalized [Link]

▪ Buyer and seller are often much more

dependent on each other.

<Business Markets and Business Buyer Behavior> 7

 Business Markets

Supplier development
Systematic development of
networks of supplier-partners to
ensure an appropriate and
dependable supply of products
and materials for use in making
products or reselling them to
others.

<Business Markets and Business Buyer Behavior> 8

 Business
Markets

Institutional
Business
and
Government Business Buyer
Behavior
Markets
Markets and
Business
Buyer
Behavior

Engaging
Business The Business
Buyer with Buyer Decision
Digital and Process
Social MKT

<Business Markets and Business Buyer Behavior> 9

 Business Buyer Behavior

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.

Also included are retailing and wholesaling firms

that acquire goods to resell or rent to others for
profit.

<Business Markets and Business Buyer Behavior> 10

 Business Buyer Behavior

1. Model of Business Buyer Behavior

<Business Markets and Business Buyer Behavior> 11

 Business Buyer Behavior
1. Model of Business Buyer Behavior
Marketing Stimuli
- Similar to consumer buying, business buying consists of
the four Ps:
• Product
• Price
• Place
• Promotion

- Additional stimuli include major economic forces (Political,

Economic, Technological, Cultural and Competitive)
<Business Markets and Business Buyer Behavior> 12
 Business Buyer Behavior
Buyer Responses to Marketing Stimuli
• Product or service choice
• Supplier choice
• Order quantities
• Delivery
• Service
• Payment terms

→ Marketers must understand what happens

within the organization and turn stimuli into
purchase responses.

<Business Markets and Business Buyer Behavior> 13

 Business Buyer Behavior

2. Major Types of Buying Situations

• Straight rebuy is a business buying situation in
which the buyer routinely reorders something
without modifications.
• Modified rebuy is a business buying situation in
which the buyer wants to modify product
specifications, prices, terms, or suppliers.
• New task is a business buying situation in which
the buyer purchases a product or service for the
first time.

<Business Markets and Business Buyer Behavior> 14

 Business Buyer Behavior

2. Major Types of Buying Situations

• Systems selling - Buying a packaged solution
to a problem from a single seller, thus avoiding
all the separate decisions involved in a
complex buying situation.
Two-step process of selling:
▪ Interlocking products
▪ System of production, inventory control,
distribution, and other services to meet the
buyer’s need for a smooth-running operation

<Business Markets and Business Buyer Behavior> 15

 Business Buyer Behavior
3. Participants in the Business Buying Process
The buying center is all of the individuals and
units that play a role in the purchase decision-
making process:
• Users are those that will use the product or service.
• Influencers help define specifications and provide information
for evaluating alternatives.
• Buyers have formal authority to select the supplier and
arrange terms of purchase.
• Deciders have formal or informal power to select and approve
final suppliers.
• Gatekeepers control the flow of information.
<Business Markets and Business Buyer Behavior> 16
 Business Buyer Behavior

3. Participants in the Business Buying Process

The buying center provides a major challenge:
• Who participates in the process
• Their relative authority
• What evaluation criteria each participant uses
• Informal participants

<Business Markets and Business Buyer Behavior> 17

 Business Buyer Behavior

4. Major Influences on Business Buyers

Textbook p.187
<Business Markets and Business Buyer Behavior> 18
 Business
Markets

Institutional
Business
and
Government Business Buyer
Behavior
Markets
Markets and
Business
Buyer
Behavior

Engaging
Business The Business
Buyer with Buyer Decision
Digital and Process
Social MKT

<Business Markets and Business Buyer Behavior> 19

 The Business Buyer Decision Process

The Buying Process

<Business Markets and Business Buyer Behavior> 20

 The Business Buyer Decision Process

S1-Problem recognition occurs when someone

in the company recognizes a problem or need.
• Internal stimuli: Need for new product or production
equipment
• External stimuli: Idea from a trade show or
advertising

S2-General need description describes the

characteristics and quantity of the needed item.

<Business Markets and Business Buyer Behavior> 21

 The Business Buyer Decision Process

S3-Product specification describes the technical

criteria.
Value analysis is an approach to cost reduction where
components are studied to determined if they can be
redesigned, standardized, or made with less costly
methods of production.

S4-Supplier search involves compiling a list of

qualified suppliers.

S5-Proposal solicitation is the process of requesting

proposals from qualified suppliers.
<Business Markets and Business Buyer Behavior> 22
 The Business Buyer Decision Process
S6-Supplier selection is the process when the
buying center creates a list of desired supplier
attributes and negotiates with preferred suppliers
for favorable terms and conditions.

S7-Order-routine specifications is the final order

with the chosen supplier and lists all of the
specifications and terms of the purchase.

S8-Performance review involves a critique of

supplier performance to the purchase terms.
<Business Markets and Business Buyer Behavior> 23
 Business
Markets

Institutional
Business
and
Government Business Buyer
Behavior
Markets
Markets and
Business
Buyer
Behavior

Engaging
Business The Business
Buyer with Buyer Decision
Digital and Process
Social MKT

<Business Markets and Business Buyer Behavior> 24

 Engaging Business Buyer
with digital social marketing

1. E-procurement and Online Purchasing

Online purchasing, often called E-procurement: Purchasing
through electronic connections between buyers and sellers -
usually online

Online purchasing
• Company buying sites
• Extranet links

<Business Markets and Business Buyer Behavior> 25

 Engaging Business Buyer
with digital social marketing
1. E-procurement and Online Purchasing

Advantages Disadvantages
• Access to new suppliers • Can erode relationships
as buyers search for
• Lowers costs
new suppliers
• Speed in order processing and
delivery • Lack of security

• Share information
• Sales
• Service and support

<Business Markets and Business Buyer Behavior> 26

 Engaging Business Buyer
with digital social marketing

2. B-to-B digital and social media marketing

Using digital and social media marketing approaches to engage
business customers and manage customer relationships
anywhere, any time.

Exp: websites, blogs, mobile apps, e-newsletters, and proprietary online

networks to mainstream social media such as Facebook, LinkedIn,
Instagram, YouTube, and Twitter,…

<Business Markets and Business Buyer Behavior> 27

 Business
Markets

Institutional
Business
and
Government Business Buyer
Behavior
Markets
Markets and
Business
Buyer
Behavior

Engaging
Business The Business
Buyer with Buyer Decision
Digital and Process
Social MKT

<Business Markets and Business Buyer Behavior> 28

 Institutional and Government Markets

1. Institutional markets consist of Schools,

hospitals, nursing homes, prisons, and other
institutions that provide goods and services to
people in their care.

Characteristics
• Low budgets
• “Captive” audience

<Business Markets and Business Buyer Behavior> 29

 Institutional and Government Markets

2. Government markets
Governmental units—federal, state, and local—
that purchase or rent goods and services for
carrying out the main functions of government.
• Carefully monitored
• Affected by similar environmental factors
• Good credit
• Non-economic factors
• Minority suppliers
• Depressed suppliers
• Small businesses

<Business Markets and Business Buyer Behavior> 30

ĐẠI HỌC FPT CẦN THƠ
Thank you