Chapter 7

Organizational Buyer Behavior

of Group Market

Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. 1

Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 Characteristics of Business
Markets
• Nature of the Buying
Unit
– Business purchases
involve more buyers.
– Business buying involves
a more professional
purchasing effort.
– Salespeople must have
knowledgeable and create
value through their
consultative advice.
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. 2
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
Participants in the Organizational
Buying Process
Users Influencers
Ethical
Decision-Factors
Factors
Deciders
Making Unit
Situational
Situational
Unexpected
of a Buying
Unexpected

Roles Include Organization

is Called Its Approvers
Attitudes
Attitudes
Buying
of
of
Center.
Others Others Buyers
Gatekeepers
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. 3
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 Major Influences on
Organizational Buyers
Environmental
Economic
Organizational
developments
Objectives
Supply
Interpersonal
Conditions Policies Individual
Authority
Technological Procedures Age Buyers
Education
change Status
Organizational Job Position
Structure Personality
Political and regulatory Empathy Risk Attitudes
developments
Systems
Competitive Persuasiveness
Developments

Culture and customs

Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. 4

Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
The Organizational Buying Process
Stage 1. Problem Recognition
Stage 2. General Need Description
Stage 3. Product Specification
Stage 4. Supplier Search
Stage 5. Proposal Solicitation
Stage 6. Supplier Selection
Stage 7. Order-Routine Specification
Stage 8. Performance Review
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. 5
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
Organization Buying on the Internet
• Organizational buyers may
purchase electronically by:
– Electronic data interchange
links (EDI)
– The Internet
• Connecting to customers to:
– Share marketing information,
– Sell products & services,
– Provide customer support, and’
– Maintain on-going relationships.
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. 6
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 Hotel Market Segments
• Conventions - associations - 2-5 years
out
• Association meetings
• Corporate meetings
– Incentive travel
• SMERF, social, military, educational,
religious, fraternal
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. 7
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 Hotel Market Segments

Associations

Destination
Long lead time
important

Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. 8

Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 Incentive Travel
• Excellent facilities
and good
destination
important
• High revenue per
person

Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. 9

Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 SMERF
• Social, military, educational, religious,
and fraternal organizations
• Price sensitive
• Can book slow periods

Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. 10

Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 Corporate Meetings
• Short lead time-can be as short as one
month
• Food and beverage important
• Ability to conduct serious meeting
important

Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. 11

Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 The Corporate Account
• Rate
• Amenities-Health club, paper, breakfast
• Quick check-in and check-out
• Airport transportation
• Business center important for upper
management

Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. 12

Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458