1. Know who the business and organizational customers are.
2. See why multiple influence is common in business and organizational purchase decisions.
3. Understand the problem-solving behavior of organizational buyers.
4. Know the basic methods used in organizational buying.
5. Understand the different types of buyer-seller relationships and their benefits and limitations.
6. Know about the number and distribution of manufacturers and why they are an important customer group.
7. Know how buying by service firms, retailers, wholesalers, and governments is similar to —and different from— buying by manufacturers.
8. Understand the important new terms.
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Chapter 7: Business and OrganizationalCustomers and Their Buying BehaviorWhen you finish this chapter, you should7-2Chapter 7 Objectives 1. Know who the business and organizational customers are.2. See why multiple influence is common in business and organizational purchase decisions.3. Understand the problem-solving behavior of organizational buyers.4. Know the basic methods used in organizational buying.5. Understand the different types of buyer-seller relationships and their benefits and limitations.6. Know about the number and distribution of manufacturers and why they are an important customer group. 7. Know how buying by service firms, retailers, wholesalers, and governments is similar to —and different from— buying by manufacturers.8. Understand the important new terms.7-3Different Types of CustomersExhibit 7-1All business and organizational customersProducersMiddlemenGovernmentsNonprofitsManufacturersFarms, mines, etc.Financial InstitutionsOther providersNationalLocalFederalState and LocalWholesalersRetailersBuying CentersBuyingCenterInfluencersUsersGatekeepersDecidersBuyers7-4Exhibit 7-2InnovationSurvivalCustomer satisfactionGrowthProfitOther needsCompany’s NeedsOverlapin NeedsIndividual’s NeedsRiskJob securityComfortCareer advancementMoney-rewardsOther needs7-5Exhibit 7-3Overlapping NeedsLittleSomeMuchNoneSomeMuchLittleSomeMuchLittleMediumMuchInformation NeededReview of SuppliersMultiple InfluencesTime RequiredCharacteristicsNew-TaskBuyingModifiedRebuyStraightRebuyType of Process7-6Exhibit 7-4Organizational Buying ProcessesBasicMethodsInspectionDescriptionNegotiatedContractsSampling7-7Basic Methods in Organizational BuyingInformation sharingLinkagesCooperationLegal bondsAdaptationsRelationshipSupplierCustomerSalespersonQualityR&DAccountingMarketingProductionPurchasing managerQualityFinanceR&DProductionAccountingEngineering7-8Exhibit 7-6Buyer-Seller RelationshipsTypes of Organizational BuyersManufacturersService ProducersRetailers &WholesalersGovernmentsGrouped by IndustryClose to CustomersBuying for TargetsBids & RegulationsFocus:Focus:Focus:Focus:7-9Inspection BuyingSampling BuyingDescription BuyingCompetitive BidsNegotiated Contract BuyingJust-in-Time DeliveryReciprocityNAICS CodesOpen to BuyResident BuyersForeign Corrupt Practices ActBusiness and Organizational CustomersISO 9000Purchasing ManagersMultiple Buying InfluenceBuying CenterVendor AnalysisNew-Task BuyingStraight RebuyModified RebuyRequisition7-10Key Terms
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