Basic Marketing: A Global Managerial Approach

Perreault−McCarthy: Basic

Marketing: A

Global−Managerial

Approach, 14/e

7. Business and
   Organizational Customers
   and Their Buying Behavior

Text © The McGraw−Hill

Companies, 2002

204 Chapter 7

and leave the details of following through to the machine. For example, when an

order comes in that requires certain materials or parts, the computer system

automatically orders them from the appropriate suppliers, the delivery date is set,

and production is scheduled.

When economic conditions change, buyers modify the computer instructions.

When nothing unusual happens, however, the computer system continues to

routinely rebuy as needs develop—electronically sending purchase orders to the

regular supplier.

Obviously, it’s a big sale to be selected as the major supplier that routinely

receives all of a customer’s electronic orders for the products you sell. Often this

type of customer will be more impressed by an attractive marketing mix for a whole

lineof products than just a lower price for a particular order. Further, it may be too

expensive and too much trouble to change the whole buying system just because

somebody is offering a low price on a particular day.

In this sort of routine order situation, it’s very important to be one of the regu-

lar sources of supply. For straight rebuys, the buyer (or computer) may place an order

without even considering other potential sources. However, if a buyer believes that

there are several suppliers who could meet the specs, the buyer may request com-

petitive bids. If different suppliers’ quality, dependability, and delivery schedules all

meet the specs, the buyer will select the low-price bid. But a creative marketer needs

to look carefully at the purchaser’s specs—and the need—to see if other elements

of the marketing mix could provide a competitive advantage.

Sellers’ sales reps (and perhaps whole teams of people) regularly call on these

customers, but notto sell a particular item. Rather, they want to maintain relations,

become a preferred source, or point out new developments that might cause the

buyer to reevaluate the present straight rebuy procedure and give more business to

the sales rep’s company.

We’ve been discussing aspects of relationships and e-commerce that generally

apply with different types of customer organizations—in both the U.S. and inter-

nationally. However, it’s also useful to have more detail about specific types of

customers.

Variations in buying by
customer type

It pays to have an
ongoing relationship

Many firms, including Hertz and
Chevrolet (a division of GM), are
developing new strategies to
target small businesses—a fast
growing sector of the economy.