Transcript Business & Organizational Customers and Their Buying Behavior

Introduction to Marketing
• Class Thirteen (04-24 & 04-26) Class Goals:
– Finish Discussing Chapter Six “Final Consumers and Their
Buying Behavior”
– Watch “Business-to-Business at the Timken Company” DVD
– Discuss Chapter Seven “Business & Organizational
Customers and Their Buying Behavior”
– Watch “Collecting Quality Information for Marketing
Decisions” DVD
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Introduction to Marketing
Chapter Seven “Business & Organizational
Customers and Their Buying Behavior”
• B2B (Business-to-Business) Marketing: Marketing
to intermediaries who add value and re-sell or to
business end users OR marketing to businesses that
are end-users. They are:
– Less emotional and irrational (its all about the “specs”!)
– More price-conscious
– Often more than one person involved in
the sales process.
– Often must know the needs of your customers’ customers!
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– Getting past the gatekeeper: http://www.youtube.com/watch?v=9MKs6KJEoO8
Introduction to Marketing
Chapter Seven “Business & Organizational
Customers and Their Buying Behavior”
• Three Types of Purchase Situations:
– New Task Buying: First time purchase.
– Straight Rebuy: Frequent/repeat purchase
• How could a real estate agent setup a “nurture account”?
– Modified Rebuy: Consideration of new vendor
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Introduction to Marketing
Chapter Seven “Business & Organizational
Customers and Their Buying Behavior”
• B2G (Business-to-Government): This is a bigger
market than B2B and has special “nuances”. Often
over-looked due to:
– Not realizing how big the market actually is!
– Not understanding how to market to the government
– Red tape
– Long sales cycle
– Increased emphasis on price (“lowest responsive bidder”)
– Lack of brand loyalty
– Amount of legalities involved
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Introduction to Marketing
Chapter Seven “Business & Organizational
Customers and Their Buying Behavior”
• B2G (Cont’d):
– Success is dependent on:
• Start by getting on the GSA list
• Segment agencies (locally, then spread out)
• Identification/influence of “influencers”
• Know the budget period (10/1 to 09/30)
• Know the classification of budgets (“new” & “maintenance”)
• Beware of competitors that bid “low” and maintain “high”
• Ethics WILL be tested!
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