2. What is Organizational Buying?
Organizational buying refers to the decision-making
process by which formal organization establish the
need for purchased products and services ,and
identify, evaluate, and choose
Among alternative brands and suppliers
3. Top Business Marketing Challenges
• Expand understanding of customer needs
• Compete globally as China and India reshape markets
• Master analytical tools and improve quantitative skills
• Innovative as an engine of growth
• Create new organizational models and linkages
4. Characteristics of Business
Markets
• Fewer, larger,
buyers
• Close supplier-
customer relationship
• Professional purchasing
• Many buying
Influences
• Multiple sales calls
• Derived demand
Inelastic demand
(not affected by price
change)
• Fluctuating demand
• Geographically
concentrated buyers
• Direct purchasing
5. Buying Situation
• Straight rebuy
-Purchasing department reorder supplies such as office supplies and bulk order.
-Goal is to gets small order and then enlarge their purchase share over time .
• Modified rebuy
-The buyer in modified rebuy want to change product specification, price, delivery
requirement .
• New task
-A new task purchaser buy a product for the first time . New task buying is marketer’s
greatest opportunity and challenge.
6. Participants In Business Buying Process
The Buying Center
The buying include all members of organization who play any of the
following 7 roles in purchasing decision process
• Initiators
• Users
• Influencers
• Deciders
• Approvers
• Buyers
• Gatekeepers (Ex. Purchasing agent ,receptionist , telephone operators)
