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Copyright©2011byTheMcGraw-HillCompanies,Inc.Allrightsreserved.McGraw-Hill/IrwinLEARNINGOBJECTIVES(LO)AFTERREADINGCHAPTER6,YOUSHOULDBEABLE

TO:Distinguishamongindustrial,reseller,andgovernmentorganizationalmarkets.LO1Describethekeycharacteristicsoforganizationalbuyingthatmak

eitdifferentfromconsumerbuying.LO25-2LO3LEARNINGOBJECTIVES(LO)AFTERREADINGCHAPTER6,YOUSHOULDBEABLETO:Explainhowbuyingcentersandbuyingsituationsinf

luenceorganizationalpurchasing.Recognizetheimportanceandnatureofonlinebuyinginindustrial,reseller,andgovernmentorganizationalmarke

ts.LO45-3BUYINGISMARKETING,TOO!PURCHASINGPUBLICATIONPAPERATJCPENNEY5-4BusinessMarketingTHENATUREAND

SIZEOFORGANIZATIONALMARKETSLO1OrganizationalBuyers•IndustrialMarkets(IndustrialFirms)•ResellerMarkets(Resellers)•GovernmentMarkets(Governm

entUnits)▪Retailers▪Wholesalers5-5FIGURE6-ATypeandnumberoforganizationestablishmentsintheU.S.:20075-6MEASURINGDOMESTICANDGLOBALINDUSTRIAL,RESELLER,A

NDGOVERNMENTMARKETSLO1NorthAmericanIndustryClassificationSystem(NAICS)5-7FIGURE6-1NAICSbreakdownfortheinformationindustriessector:NAICScode51(a

bbreviated)5-8FIGURE6-2Keycharacteristicsanddimensionsoforganizationalbuyingbehavior5-9DerivedDemandSizeofOrderorPurch

aseNumberofPotentialBuyersCHARACTERISTICSOFORGANIZATIONALBUYINGLO2OrganizationalBuyingObjectives•Profits•Efficiency•Women/MinoritySuppliers/Ven

dors•Environment5-10FIGURE6-BKeyorganizationalbuyingcriteriaOrganizationalBuyingCriteria5-11MARKETINGMATTERSHarley-Davidson’sSupplierCollabo

rationCreatesCustomerValue…andaGreatRideLO25-12CHARACTERISTICSOFORGANIZATIONALBUYINGLO2Buyer-SellerRelationshipsandSupplyPartnerships

•Reciprocity•SupplyPartnership•SustainableProcurement5-13MAKINGRESPONSIBLEDECISIONSSustainableProcurementforS

ustainableGrowthLO25-14•AlternativeEvaluationTHEORGANIZATIONALBUYINGPROCESSANDTHEBUYINGCENTERSTAGESINTHEO

RGANIZATIONALBUYINGPROCESSLO3OrganizationalBuyingBehavior•PurchaseDecision•ProblemRecognition•InformationSearch•Postpu

rchaseBehavior5-15FIGURE6-3Comparingthestagesinaconsumerandorganizationalpurchasedecisionprocess5-16THEO

RGANIZATIONALBUYINGPROCESSANDTHEBUYINGCENTERTHEBUYINGCENTER:ACROSS-FUNCTIONALGROUPLO3BuyingCenterBuyingCommitteePeopleintheBuyingCent

erRolesintheBuyingCenter•Users•Influencers•Buyers•Deciders•Gatekeepers5-17•StraightRebuy•ModifiedRebuy•NewRebuyTHEORGANIZATIO

NALBUYINGPROCESSANDTHEBUYINGCENTERTHEBUYINGCENTER:ACROSS-FUNCTIONALGROUPLO3BuyingClasses5-18FIGURE6-4Thebuyings

ituationaffectsbuyingcenterbehaviorindifferentways5-19ProminenceofOnlineBuyinginOrganizationalMarketsONLINEBUYINGINORGANIZATIONALMARKETSLO4E-mar

ketplacesOnlineAuctionsinOrganizationalMarkets•TraditionalAuction•ReverseAuction5-20MARKETINGMATTERSeBayMeansBusinessforEntrepreneursLO45-21F

IGURE6-5Howbuyerandsellerparticipantsandpricebehaviordifferbytypeofonlineauction5-22LANDS’END:WHEREBUYERS

RULEVIDEOCASE65-23VIDEOCASE6LANDS’END1.(a)WhoislikelytocomprisethebuyingcenterinthedecisiontoselectanewsupplierforLands’End?(b)Whichofthebuyingcenter

membersarelikelytoplaytherolesofusers,influencers,buyers,deciders,andgatekeepers?5-24VIDEOCASE6LANDS’END2.(a)W

hichstagesoftheorganizationalbuyingdecisionprocessdoesLands’Endfollowwhenitselectsanewsupplier?(b)Whatselectioncriteriadoesthecompan

yutilizeintheprocess?5-25VIDEOCASE6LANDS’END3.DescribethetypesofpurchasesLands’Endbuyerstypicallyfaceineachofthethreebuyin

gsituations:straightrebuy,modifiedrebuy,andnewbuy.5-26BusinessMarketingBusinessmarketinginvolvesthemarketingofgoodsandservicestocom

panies,governments,ornot-for-profitorganizationsforuseinthecreationofgoodsandservicesthattheycanproduceandmarkettoothers.5-27Organizatio

nalBuyersOrganizationalbuyersarethosemanufacturers,wholesalers,retailers,andgovernmentagenciesthatbuygoodsandservicesfortheirownuseo

rforresale.5-28NorthAmericanIndustryClassificationSystem(NAICS)TheNorthAmericanIndustryClassificationSystem(NAICS)providescommonindust

rydefinitionsforCanada,Mexico,andtheUnitedStates,whichmakesiteasiertomeasureeconomicactivityinthethreemembercou

ntriesoftheNorthAmericanFreeTradeAgreement(NAFTA).5-29DerivedDemandDeriveddemandisthedemandforindustrialpr

oductsandservicesisdrivenby,orderivedfrom,demandforconsumerproductsandservices.5-30OrganizationalBuyingBehaviorOrganizationa

lbuyingbehavioristhedecision-makingprocessthatorganizationsusetoestablishtheneedforproductsandservicesandidentify,evaluate,andchooseamongalternati

vebrandsandsuppliers.5-31BuyingCenterAbuyingcenterconsistsofthegroupofpeopleinanorganizationwhoparticipateinthebuyingprocessandshare

commongoals,risks,andknowledgeimportanttopurchasedecisions.5-32BuyClassesBuyclassesconsistsofthreetypesoforganizatio

nalbuyingsituations:straightrebuy,newbuy,andmodifiedrebuy.5-33E-marketplacesE-marketplacesareonlinetradingcommunitiesthatb

ringtogetherbuyersandsupplierorganizationstomakepossibletherealtimeexchangeofinformation,money,products,andservices.AlsocalledB2Bexchangesore-hu

bs.5-34TraditionalAuctionAtraditionalauctionis,withinane-marketplace,anonlineauctioninwhichasellerputsanitemupforsaleandwould-bebuyersareinvit

edtobidincompetitionwitheachother.5-35ReverseAuctionAreverseauctionis,withinane-marketplace,anonlineauctioninwhichabuyer

communicatesaneedforaproductorserviceandwould-besuppliersareinvitedtobidincompetitionwitheachother.5-36