1. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Chapter 7: Business and Organizational Customers and Their Buying Behavior

2. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill 7-3 Different Types of Customers Exhibit 7-1 All business and organizational customers Producers Middlemen Governments Nonprofits Manufacturers Farms, mines, etc. Financial Institutions Other providers National Local Federal State and Local Wholesalers Retailers

3. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Business and Organizational Customers Business and organizational buyers (i.e., customers): Buy for resale or to produce other goods and services. Buy to satisfy their customers and clients and often to make a profit. Are are generally less emotional and more rational in their buying behavior. Are motivated to buy based on quality, low cost, reliability, dependability, cooperativeness, steady supply, speedy maintenance, fast delivery. Are generally reached with sales representatives and individualized marketing strategies. Rely on many sources of information prior to making a decision, but will search for little additional information for an unimportant purchase. May use vendor analysis - a formal rating of suppliers on all relevant areas of performance.

4. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Buying Centers Buying Center InfluencersUsers GatekeepersDeciders Buyers 7-4 Exhibit 7-2

5. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Innovation Survival Customer satisfaction Growth Profit Other needs Companys Needs Overlap in Needs Individuals Needs Risk Job security Comfort Career advancement Money-rewards Other needs 7-5 Exhibit 7-3 Overlapping Needs

6. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill LittleSomeMuch NoneSomeMuch LittleSomeMuch LittleMediumMuch Information Needed Review of Suppliers Multiple Influences Time Required Characteristics New-Task Buying Modified Rebuy Straight Rebuy Type of Process 7-6 Exhibit 7-4 Organizational Buying Processes

7. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Basic Methods Inspection Description Negotiated Contracts Sampling 7-7 Basic Methods in Organizational Buying

8. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Information sharing Linkages Cooperation Legal bonds Adaptations RelationshipSupplierCustomer Salesperson Quality R&D Accounting Marketing Production Purchasing manager Quality Finance R&D Production Accounting Engineering 7-8 Exhibit 7-6 Buyer-Seller Relationships

9. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Types of Organizational Buyers Manufacturers Service Producers Retailers & Wholesalers Governments Grouped by Industry Close to Customers Buying for Targets Bids & Regulations Focus: 7-9