Marketing: Organizational Buying Behaviour

             For successful business to business marketing it is very important to know how the organization's buying behavior is built. Organizational buying activity consists of two major parts; the people who influence the purchasing decisions (buying center), and the decision making process.

             The buying behavior model suggest that the organization's internal factors, inter-action factors and individual factors, together with the environmental factors are affecting the buying process and people who are making the buying decisions (Kotler & Armstrong 2010).

             Business to Business - market customers are paying more attention to the environment prevailing economic factors. Economic factors such as customer buying habits, investment and interest rates. Organizations try to avoid any additional costs during the downturn, when the level of demand can be difficult to keep the same. The organization purchases are also affected by technological changes, environmental policy development, and competition.(Kotler & Armstrong 2010, Kotler 2003).

             Special Features of Business to Business Markets.

             Business to business- markets are markets where products and services are sold and bought by businesses or other organizations.

             Number of the customers is relatively small compared to the size of the markets and marketing is typically geographically concentrated. Purchasing is often a professional and systematic related consumer markets.

             Characteristic feature of demand on business to business- markets is rigidity. Price changes will not affect the overall demand for capital goods much.

             Decision Making Process.

             1. Need problem recognition.

             The need can begin from identifying internal or external stimuli (example: machine breaks down, need for new one to be able to continue production).

             2. Product Specifications.

             At this stage defines the general characteristics of the product and quantity, how much product is needed, at the end of phase is exact specifications are known specifications.

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