1. Distinct Aspects of Organizational Buyers2. Nature of Organizational DemandMKT 327: CLASS THIRTEEN “ORGANIZATIONAL CUSTOMERS”Theme: “Where the Action Is”Pre-Class Tasks:1. Read Chapter 5 LO to LO2. Complete Quiz 11 on ConnectLearning Objectives:1. Distinct Aspects of Organizational Buyers2. Nature of Organizational Demand3. Organizational Buying Model & Processes4. Organizational Buying InfluencesKey Terms:Organizational Buyer BehaviorBusiness Marketing Organizational BuyersBuy Classes (Buying Situations):Straight Rebuy Modified RebuyNew Task Buying RelationshipValue AddedOrganizational Buying Process {Know Stages}Elastic Demand Inelastic DemandDerived Demand Fluctuating Demande-market PlaceReverse Auction Traditional Auction(NAICS)Roles in Buying Center:Gatekeeper User InfluencerBuyer DecidersTarget Market Analysis – As stated in class Twelve’s agenda a customer can either be a consumer or an organizational buyer. There are several characteristics which distinguishes these two types of customers. Consumer Organization Many, Many Customers  Few Customers Single Purchases  Long Term Contractual Purchases Relatively Small Quantities  Very Large Purchase Quantities Widely Dispersed  Geographically Concentrated Emotional Factors  Rational / Organizational Factors Play Significant Role Play Significant Role Singular Demand  Varied / Derived DemandAn organizational buyer behavior analysis has the same components or information needs as was the case with consumers (stage in buying process, who, what, why, when, where, and how). The data needed are somewhat different though as shown below:- The data needed to identify the organizational buyer’s state in the buying process is the same as with the consumer (problem recognition, information search, alternative evaluation, purchase decision, and post-purchase behavior). There are structured and multiple individuals involved at each of these various stages. They are defined by the Buying Center. The basic roles different individuals have within the typical buying center are: gatekeepers, users, influencers, deciders, and buyers.- The data needed to identify who buys involves determining the type of organizational customer: extractors, manufacturers, wholesalers, retailers, institutions, and government agencies. It also requires demographic and ‘psychographic’ profile, but the components of these profiles differ. Examples of demographic profile components would be: (size, # of employees, years in business, role in value chain, profits, ecetera). Examples of ‘psychographic’ or better behavioral profile components are: (corporate culture, buying motives, policies and procedures, buying center relationships, ecetera). Finally the categories for the type of buyer are the same as with consumers.- The data needed to specify exactly what customers are buying involves product attributes and product benefits. Product benefits for organizations though include the concept of value added.- The data needed to understand why and how customers buy involve processes (type of decision, decision making process or buying process[business], and buying situation[business]-for the steps involved in these processes see class notes); and influences (market and organizational) for the specific components of these influences see class notes)The information provided by an organizational behavior analysis again consists of customer profiles and insights regarding customer needs and how they might be turned into desired wants and demand. These results are applied the same as with consumers.- The data needed to understand why and how customers buy involve processes (type of decision, decision making process or buying process[business], and buying situation[business]-for the steps involved in these processes see class notes); and influences (market and organizational) for the specific components of these influences see class notes)The information provided by an organizational behavior analysis again consists of customer profiles and insights regarding customer needs and how they might be turned into desired wants and demand. These results are applied the same as with