Chapter 7 Organizational Buyer Behavior of Group Market Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

Characteristics of Business Markets Nature of the Buying Unit Business purchases involve more buyers. Business buying involves a more professional purchasing effort. Salespeople must have knowledgeable and create value through their consultative advice. Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

Participants in the Organizational Buying Process Factors Situational Unexpected Users Influencers Ethical Decision-Making Unit of a Buying Organization is Called Its Buying Center. Deciders Roles Include Attitudes of Others Approvers Buyers Gatekeepers Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

Major Influences on Organizational Buyers Environmental Economic developments Supply Conditions Technological change Political and regulatory Competitive Developments Culture and customs Organizational Objectives Policies Procedures Structure Systems Interpersonal Authority Status Empathy Persuasiveness Individual Age Education Job Position Personality Risk Attitudes Buyers Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

The Organizational Buying Process Stage 1. Problem Recognition Stage 2. General Need Description The Organizational Buying Process Stage 3. Product Specification Stage 4. Supplier Search Stage 5. Proposal Solicitation Stage 6. Supplier Selection Stage 7. Order-Routine Specification Stage 8. Performance Review Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

Organization Buying on the Internet Organizational buyers may purchase electronically by: Electronic data interchange links (EDI) The Internet Connecting to customers to: Share marketing information, Sell products & services, Provide customer support, and’ Maintain on-going relationships. Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

Hotel Market Segments Conventions - associations - 2-5 years out Association meetings Corporate meetings Incentive travel SMERF, social, military, educational, religious, fraternal Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

Hotel Market Segments Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

Incentive Travel Excellent facilities and good destination important High revenue per person Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

SMERF Social, military, educational, religious, and fraternal organizations Price sensitive Can book slow periods Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

Corporate Meetings Short lead time-can be as short as one month Food and beverage important Ability to conduct serious meeting important Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

The Corporate Account Rate Amenities-Health club, paper, breakfast Quick check-in and check-out Airport transportation Business center important for upper management Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458