Sunday, November 2, 2014

Understanding Organizations as Customers

Hello readers!

    It seems like it has been awhile since the last time I informed you on new marketing information! Well it looks like its your lucky day because I am going to embrace you with some new stuff. 
   Today I will talk about Organizations. I want to start off with a simple term first though which is Business Marketing the marketing of goods and services to companies, governments, or not-for-profit organizations for use in the creation of goods and services that they can produce and market to others. 
   Another term to be associated with is Organizational Buyers which are those manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale. 
   There are three markets that organizational buyers divide into --> 
            1. Industrial Markets 
            2. Reseller Markets 
            3. Government Markets 
They also all tie into a global scale which is the Global Organizational Market

Now, looking at demand characteristics. 
This chart above clearly describes the process with organizational buying and behavior. There is also a whole stage process on the buying decision process which is shown in the chart below. 


Organizational Buying Criteria are the objective attributes of the suppliers products and services and the capabilities of the supplier itself. There are 7 common criteria's used which are: 
1. Price.
2. Ability to meet the quality specifications required for the item.
3. Ability to meet required delivery schedule. 
4. Technical capability. 
5. Warranties and claim policies in the event of poor performance. 
6. Past performance on previous contracts.
7. Production facilities and capacity.

Its all about the customers with marketing! Being able to depict what is going to catch someones eye and interest is the most important thing in marketing. It is what sells your product!  






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