Transcript 07 Group market s

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
Key Terms
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Buying center
Convention
Corporate meeting
Derived demand
General need description
Incentive travel
Order-routine specification
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for
Marketing
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Hospitality
Tourism,and
4thTourism,
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Kotler,
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andMakens
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Key Terms
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•
•
•
•
•
•
Organizational buying process
Performance review
Problem recognition
Product specification
SMERF
Supplier search
Supplier selection
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for
Marketing
Hospitality
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Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
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
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Tourism,and
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Chapter Objectives
• Understand the organizational
buying process
• Identify and discuss the importance
of the participants in the
organizational buying process
©2006 Pearson Education, Inc.
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Marketing for
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Hospitality
Tourism,and
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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
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Tourism,and
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Kotler,
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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.
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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
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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.
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Participants in the Organizational Buying Process
Users
Influencers
Ethical
Unexpected
Situational
Factors
Roles Include
DecisionMaking Unit
of a Buying
Organization is
Called Its
Attitudes
Buying Center.
of
Others
©2006 Pearson Education, Inc.
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Deciders
Approvers
Gatekeepers
Buyers
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Major Influences on Organizational Buyers
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
Organizational Buying Decisions
1. Problem
Recognition
2. General Need
Description
3. Product
Specification
4. Supplier
Research
©2006 Pearson Education, Inc.
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5. Proposal Solution
6. Supplier Selection
7. Order-Routine
Specification
8. Performance
Review
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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.
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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.
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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
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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.
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Proposal Solution
• Proposal solution is when
qualified suppliers are invited
to submit proposals
• What are some important tools
for writing and researching a
proposal?
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Marketing for
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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.
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Marketing for
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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.
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Marketing for
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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
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Hospitality
Tourism,and
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Kotler,
Kotler,Bowen,
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andMakens
Makens
Group Business Markets
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•
•
•
•
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
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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
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and 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,
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andMakens
Makens
Slayt Sonu
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens