Summary Marketing Chapter 5 - Principles of marketing; Kotler

Marketing
Chapter 6 : Business markets and business buyer behaviour

Business markets
Business markets differ from consumer markets:
- Market structure and demand
 Business markets contain fewer but larger buyers
 Business buyer demand is derived from final consumer’s demand
 Demand in many business markets is more inelastic - not affected as much
in short term
 Demand in business markets fluctuates more and more quickly
- The nature of the buying unit
 Business purchases involve more buyers
 Business buying involves a more professional purchasing effort
- Types of decision and the decision process
 Business buyers usually face more complex buying decisions
 The business buying process is more formalised
 In business buying, buyers and sellers work more closely together and build
close long-term relationships

Business buyer behaviour




Major types of buying situation
1. Straight rebuy: maintain product and service quality.
2. Modified rebuy: make a better offer and gain new business
3. New task: most decisions.
4. System selling (solution selling): for winning and holding accounts

Participants in the business buying process
Buying centre includes actual users of the product, those who make the buying decision,
those who influence buying decision, those who do actual buying and those who control
buying information. Includes all members of organisation who play any of five roles in
purchase decision process:
- User
- Influence
- Buyers
- Deciders
- Gatekeepers