0909615614

1. ORGANIZATIONAL BUYER BEHAVIOR
Dr. Vu The Dung
Sep 2008

2. Discussion
 What is B2B Marketing?
 How does B2B differ from B2C Marketing?
 What is the potential weakness of Marketing
Concept?
 Discuss the trends in Marketing Thinking and
Practices. What do you think is the most
important trends?
 What is 3C model? Why do Marketers care
about the 3C perspective?

3. Case study
 Nắng Sài Gòn is a new, luxurious restaurant
located in District 1. The Director asks his
staff to go out to the stress to distribute
brochure and leaflets.
 Discuss the director’s marketing solution?
 If you were a director of this restaurant, draw a
brief B2B Marketing Plan to Market Nang Sai Gon.

4. Case study: Ferguson Industries
Gabe Ferguson needed a loan. Business was great this year
for the family business, a company that made small fans
used to cool personal computers. With business going so
well, Gabe wanted to expand plant capacity by 25 percent.
Unfortunately, the bank with which he had done business for
over two decades was reluctant to provide him with the loan.
As Jaime Trevino, president of the local North Crest Bank
branch, explained, “I know sales are great this year. But last
year, sales were barely at break-even and three years ago,
you lost 10 percent when you lost the Apple account. As it
is, you still have four customers accounting for 75 percent of
your business. I think you need more steady growth.”
“But Jaime, without more plant capacity, I won’t be able to get
that steady growth,” Gabe complained.
“Gabe, let’s look at ways you can get steadier sales first. Then
if the expansion is still warranted, we’ll make the loan.”
1. Why would sales vary so greatly for Gabe’s company?
2. How can Ferguson Industries stabilize sales?

5. Case study: Abilene Heavy Equipment Tires
Abilene Heavy Equipment Tires sells tires for off-road mining and forestry vehicles and
construction equipment. The company also retreads the tires and provides services
at the mine or construction site. Because customers’ equipment is considered
production equipment, a flat tire means a loss of production. Quality service is an
important element in Abilene’s business.
Ken Arthur is the manager of Abilene’s service business. His responsibilities include
managing a fleet of 12 heavy-duty pickup trucks that are used to reach customers’
equipment in the field for service. Ken buys three trucks each January, retiring
each truck after four years of service. For the previous two years, he purchased
Dodge trucks from the Abilene Dodge dealer, dealing directly with owner Don
Tanksley.
Today, December 20, Don stopped by Ken’s office. After saying hello and asking after
the family, Don said, “Come on, Ken, I want to show you something I have outside
in the truck.” As they walked outside, Don continued, “I know you like to hunt and I
thought you might appreciate this little Christmas present. You’ve been a good
customer for nearly 10 years, and I’d like to say thank you with this.” From the
inside of his truck, Don pulled out a new Browning Citori shotgun.
Ken eyed the new gun with appreciation, knowing that it retailed for at least $1,200.
The custom carving on the stock, with Ken’s initials, probably added another $500
to the cost of the gun. He held it, admiring the balance, and then sighted the gun as
if about to shoot. He thought about how nice it would be to use this at the annual
dove hunt that Abilene sponsored for its customers.
1. Is there any ethical problem with Ken accepting the gift? Why or why not?
2. What factors could affect your decision?

6. Trends in Marketing thinking and practice
 From make-and-sell marketing to sense-and-
respond marketing.
 From focusing on customer attraction to
focusing on customer retention
 From pursuing market share to pursuing
customer share
 From marketing monologue to customer
dialogue.

7. Trends in Marketing thinking and practice
 From mass marketing to customized
marketing
 From owning assets to owning brands.
 From operating in the marketplace to
operating in cyberspace.
 From single-channel marketing to
multichannel marketing.
 From product-centric marketing to customer-
centric marketing.

8. Transactional vs. Relational Marketing
Transactional exchange Relationship exchange
Objective To make a sale (sale is end result and To create a customer (sale is
measure of success) beginning and relationship is the
Customer needs satisfaction measure of success)
(customer buys value) Customer integration (interactive
value generation)
Customer Anonymous customer Well-known customer
understand Independent buyer and seller Independent buyer and seller
ing
Market tasks Assessment on the basis of products Assessment on the basis of problem-
and and prices. solving competence
performanc Focus on gaining new customers Focus on value enhancing of
e criteria
existing customers
Core aspects of Focus on products Focus on service
exchange Sales is a conquest Sale as a agreement
Discreet even (episodic perspective) Continuing process (historic holistic
Monologue to be aggregated perspective)
Individualized dialogue

9. Summary of Key Points – last class
 E-learning, e-resources, discussion online,
up-to-date announcement
 Satisfy Customer need in a better way than
competitors
 Marketing Mix 4P = 4C
 The Marketing Concept
 Sales vs. Marketing Concept
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10. Marketing – Extended Model
Suppliers Distribution Channel
Target
Customer
Value
Economic
Emotional
Company Competitors
Government Community
Interest groups
Cultural/ Political/ Economic/ Legal/ Technological/ Environmental/ Demographic
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11. Learning Objectives
 Purchasing Process
 Buying Influences
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12. Buying Influences
Innitiator
Users
Influencer
Buyer
Behavior
Purchase
r
Decider
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13. Purchasing Contribution to the Firm
 Provide appropriate levels of supply of the right
product or service
 At the correct level of quality
 For the lowest total cost

14. How purchasing costs influence profit?

15. Trends in Purchasing
 Downsizing
 Outsourcing
 Earlysuppliers involvement
 Stronger relationship with suppliers
 Cross – functional teams
 Professionalism in Purchasing
 Ethical Issues Facing Purchasing
 Receiving gifts
 Access to Information

16. Typical Profile of Pro Purchasing Officer

17. Reasons to buy
Factor Percent
Product Quality 72.7%
Service 53.4%
Availability of Product 50.8%
Total Purchasing Costs 40.5%
Price of Product 32.2%
Supplier’s supports in urgent situations 26.9%
Ease of Contact with suppliers 18.6%
Technical supports 15.2%
Brand name 11.0%
Source: Calners Advertising Research Reports

18. Buy Phase Model

19. Buy Phase and Marketing Techniques

20. Brand Relevance and Buying Situations

21. Purchasing Philosophy
Adversarial purchasing Partnership purchasing or
philosophy preferred supplier
systems
Many Suppliers Several Suppliers One Supplier

22. Buying Influences

23. Supplier Evaluation

24. Factors influencing Purchasing Decision

25. Factors influencing Purchasing Decision
Environmental
Organizational
•Level of
demand Interpersonal
•Objectives
•Economic Individual
•Interests
outlook •Policies •Age
•Income
•Interest rate •Authority Business
•Procedures •Education
•Rate of techno- •Status •Job position Buyer
logical change •Organizational •Personality
structures •Empathy •Risk attitudes
•Political and
regulatory •Culture
•Systems •Persuasive-
developments ness
•Competitive
developments
•Social responsi-
bility concerns

26. Comprehensive model

27. Group Project
 Form group of 4-6 students
 Choose a new products/ services and prepare
a Marketing Plan to market your products/
services to B2B customers

28. Questions/ Answers
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