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 Business Marketing Business Marketing THE NATURE AND SIZE OF ORGANIZATIONAL MARKETS LO1  Organizational Buyers Organizational Buyers Industrial Markets (Industrial Firms) Reseller Markets (Resellers) Government Markets (Government Units) Global Organizational Markets  Retailers  Wholesalers 6-2

FIGURE 6-A FIGURE 6-A Type and number of organization establishments in the U.S. 6-3

MEASURING DOMESTIC AND GLOBAL INDUSTRIAL, RESELLER, AND GOVERNMENT MARKETS LO1  North American Industry Classification System (NAICS) North American Industry Classification System (NAICS)  North American Product Classification System (NAPCS) 6-4

FIGURE 6-1 FIGURE 6-1 NAICS breakdown for the information industries sector: NAICS code 51 (abbreviated) 6-5

 Derived Demand Derived Demand  Size of Order or Purchase Size of Order or Purchase  Number of Potential Buyers Number of Potential Buyers  Organizational Buying Objectives Organizational Buying Objectives CHARACTERISTICS OF ORGANIZATIONAL BUYING LO2 6-6

FIGURE 6-B FIGURE 6-B Key organizational buying criteria 6-7

Just-in-Time CHARACTERISTICS OF ORGANIZATIONAL BUYING LO2  ISO 9000( International Standard Organization) ISO 9000( International Standard Organization)  Supplier Development Supplier Development 6-8

 Buyer-Seller Relationships and Supply Partnerships Buyer-Seller Relationships and Supply Partnerships CHARACTERISTICS OF ORGANIZATIONAL BUYING LO2 Reciprocity Supply Partnership 6-9

CHARACTERISTICS OF ORGANIZATIONAL BUYING THE BUYING CENTER—A CROSS-FUNCTIONAL GROUP LO3  Buying Center Buying Center  Buying Committee Buying Committee  People in the Buying Center People in the Buying Center  Roles in the Buying Center Roles in the Buying Center Users Influencers Buyers Deciders Gatekeepers 6-10

CHARACTERISTICS OF ORGANIZATIONAL BUYING THE BUYING CENTER—A CROSS-FUNCTIONAL GROUP LO3  Buy Classes Buy Classes Straight Rebuy Modified Rebuy New Rebuy 6-11

FIGURE 6-3 FIGURE 6-3 The buying situation affects buying center behavior in different ways 6-12

FIGURE 6-4 FIGURE 6-4 Comparing the stages in a consumer and organizational purchase decision process 6-13

 Prominence of Online Buying in Organizational Markets Prominence of Online Buying in Organizational Markets ONLINE BUYING IN ORGANIZATIONAL MARKETS LO4  E-marketplaces E-marketplaces  Reverse Auction Reverse Auction  Online Auctions in Organizational Markets Online Auctions in Organizational Markets  Traditional Auction Traditional Auction 6-14

FIGURE 6-6 FIGURE 6-6 How buyer and seller participants and price behavior differ by type of online auction 6-15