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Chapter 5: Understanding organizations as customers. When you finish this chapter, you should: Distinguish among industrial, reseller, and government organizational markets; describe the key characteristics of organizational buying that make it different from consumer buying; explain how buying centers and buying situations influence organizational purchasing; recognize the importance and nature of online buying in organizational markets. | McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 5, YOU SHOULD BE ABLE TO: Distinguish among industrial, reseller, and government organizational markets. LO1 Describe the key characteristics of organizational buying that make it different from consumer buying. LO2 5- LO3 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 5, YOU SHOULD BE ABLE TO: Explain how buying centers and buying situations influence organizational purchasing. Recognize the importance and nature of online buying in organizational markets. LO4 5- BUYING PUBLICATION PAPER IS A SERIOUS MARKETING RESPONSIBILITY AT JCPENNEY 5- Business Marketing THE NATURE AND SIZE OF ORGANIZATIONAL MARKETS LO1 Organizational Buyers Industrial Markets (Industrial Firms) Reseller Markets (Resellers) Government Markets (Government Units) Retailers Wholesalers Mars Curiosity 5- NASA Mars Curiosity photo courtesy of . | McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 5, YOU SHOULD BE ABLE TO: Distinguish among industrial, reseller, and government organizational markets. LO1 Describe the key characteristics of organizational buying that make it different from consumer buying. LO2 5- LO3 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 5, YOU SHOULD BE ABLE TO: Explain how buying centers and buying situations influence organizational purchasing. Recognize the importance and nature of online buying in organizational markets. LO4 5- BUYING PUBLICATION PAPER IS A SERIOUS MARKETING RESPONSIBILITY AT JCPENNEY 5- Business Marketing THE NATURE AND SIZE OF ORGANIZATIONAL MARKETS LO1 Organizational Buyers Industrial Markets (Industrial Firms) Reseller Markets (Resellers) Government Markets (Government Units) Retailers Wholesalers Mars Curiosity 5- NASA Mars Curiosity photo courtesy of NASA/JPL-Caltech. FIGURE 5-A Type and number of organization establishments in the U.S.: 2007 5- MEASURING DOMESTIC AND GLOBAL INDUSTRIAL, RESELLER, AND GOVERNMENT MARKETS LO1 North American Industry Classification System (NAICS) North American Free Trade Agreement (NAFTA) 5- FIGURE 5-1 NAICS breakdown for the information industries sector: NAICS code 51 (abbreviated) 5- FIGURE 5-2 Key characteristics and dimensions of organizational buying behavior 5- Derived Demand Size of Order or Purchase Number of Potential Buyers CHARACTERISTICS OF ORGANIZATIONAL BUYING LO2 Organizational Buying Objectives Profits Efficiency Women/Minority Suppliers/Vendors Environment 5- CHARACTERISTICS OF ORGANIZATIONAL BUYING LO2 Supplier Development Organizational Buying Criteria 5- MARKETING MATTERS Harley-Davidson’s Supplier Collaboration Creates Customer Value and a Great Ride LO2 5- FIGURE 5-3 Product and supplier selection criteria for buying machine
