Transcript Participants in the Organizational Buying Process

Chapter 7
Organizational
Buyer
Behavior of
Group Market
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
“The ideal salesperson in the
company meetings segment isn’t a
salesperson in the traditional sense,
but rather the problem-solver.”
Robert C. Mackey
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Chapter Objectives
• Understand the organizational buying
process
• Identify and discuss the importance of
the participants in the organizational
buying process
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Chapter Objectives
• Identify the major influences on
organizational buyers
• List the eight stages of the
organizational buying process
• Identify and describe the group markets
in the hospitality industry
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
The Organizational Buying
Process
• Market Structure and Demand
– Organizational demand is derived
demand; it comes ultimately from the
demand for consumer goods or
services
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
The Organizational Buying
Process
• Organizational buying decisions tend to
be more complex than consumer
decisions
• The organizational buying process
tends to be more formal than the
consumer process
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Participants in the
Organizational Buying Process
• A buying center is all those individuals
and groups who participate in the
purchasing decision-making process,
who share common goals and the risks
arising from the decisions
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Participants in the Organizational
Buying Process
Users
Influencers
Ethical
Decision-
Unexpected
Situational
Factors
Roles Include
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Making Unit
of a Buying
Organization
is Called
Its
Buying
Attitudes
Center.
of
Others
Deciders
Approvers
Gatekeepers
Buyers
Marketing for
Marketing
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Hospitality
Tourism,and
4thTourism,
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Kotler,
Kotler,Bowen,
Bowen,and
andMakens
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Major Influences on
Organizational Buyers
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Organizational Buying
Decisions
1. Problem Recognition
5. Proposal Solution
2. General Need
Description
6. Supplier Selection
3. Product
Specification
7. Order-Routine
Specification
8. Performance Review
4. Supplier Research
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Problem Recognition
• Problem recognition is when someone
in a company recognizes a problem or
need that can be met by acquiring a
good or a service
• Problem recognition can occur because
of internal and external stimuli
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
General Need Description
• General need description is when a
company describes the general
characteristics and quantity of a needed
item
• What are some items that would be
included in a general needs description
for a training meeting?
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Product Specification
• Product specification is when the
buying organization decides on and
specifies the best technical product
characteristics for a needed item
• What are some items that would be
included in a product specification
description for a training meeting?
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Supplier Search
• Supplier search is when a buyer tries
to find the best vendor
• What are the best ways for buyers to
identify suppliers?
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Proposal Solution
• Proposal solution is when qualified
suppliers are invited to submit proposals
• What are some important tools for
writing and researching a proposal?
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Supplier Selection
• Supplier selection is when a buyer
receives proposals and selects a
supplier or suppliers
• What are the six attributes that meeting
planners consider when selecting a
location
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Order-Routine Specification
• Order-routine specification when a buyer
writes the final order with the chosen
supplier(s), listing the technical specifications,
quantity needed, expected time of delivery,
return policies, warranties, and so on
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Performance Review
• Performance review is when a buyer
rates its satisfaction with suppliers,
deciding whether to continue, modify, or
drop the relationship
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Group Business Markets
•
•
•
•
•
Conventions
Association Meetings
Corporate Meetings
Incentive Travel
SMERFs – Social, military,
educational, religious, and fraternal
organizations
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Dealing with Meeting Planners
• The hotel salesperson must look for items
that will create value for the meeting
planner without creating costs or
sacrificing revenue for the hotel
• Meeting planners expect timeliness and
efficiency
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
The Corporate Account and
Corporate Travel Manager
• Highly sought after segment
• 10% to 40%
• More likely to use hotel services
(restaurants, laundry, etc.)
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens