Kotler ch07 Lecture

Marketing for Hospitality and Tourism
Seventh Edition, Global Edition
CHAPTER 7
Organizational
Buyer Behavior
Marketing for Hospitality

ICD-10-CM/PCS Coding: A and
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Tourism,
to Success
7e, GE, Copyright © 2017 Pearson Education, Ltd.
LorraineBowen,
Kotler, M. Papazian-Boyce
Makens, Baloglu All Rights Reserved
Learning Objectives
1. Understand the organizational buying

process.
2. Identify and discuss the importance of
the participants in the organizational
buying process.
3. Identify the major influences on
organizational buyers.

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to Success
LorraineBowen,
Learning Objectives (cont.)
4. List the eight stages of the

organizational buying process.
5. Identify and describe the group
markets in the hospitality industry.

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The Organizational Buying Process
Complex
Large Sums
Technical
of Money
Features
Interactions
Economic
among Many
Considerations
People

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LorraineBowen,
Participants in the Organizational
Buying Process
Users Influencers Deciders
Approvers Buyers Gatekeepers

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Major Influences on
Organizational Buyers
Environmental Organizational
Influencers
Interpersonal Individual

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Buyphases
General
Problem Product Supplier
Need
Recognition Specification Search
Description
Proposal Supplier Order-Routine Performance

Solicitations Selection Specification Review

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Group Markets
Association
Conventions
Meetings
SMERF
Corporate (Social, Military,
Meetings Educational, Religious
& Fraternal)

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Key Terms
• Buying center
– All those individuals and groups who
participate in the purchasing and
decision-making process and who share
common goals and the risks arising
from the decisions

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Key Terms (cont.)
• Convention
– A specialty market requiring extensive
meeting facilities. It is usually the
annual meeting of an association and
includes general sessions, committee
meetings, and special-interest sessions.

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LorraineBowen,
Key Terms (cont.)
• Corporate meeting
– A meeting held by a corporation for its
employees
• Derived demand
– Organizational demand that ultimately
comes from (derives from) the demand
for consumer goods

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LorraineBowen,
Key Terms (cont.)
• General need description

– The stage in the industrial buying
process in which a company describes
the general characteristics and quantity
of a needed item
• Incentive travel
– A reward that participants receive for
achieving or exceeding a goal

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LorraineBowen,
Key Terms (cont.)
• Order-routine specification
– The stage of the industrial buying
process in which a buyer writes the final
order with the chosen supplier(s), listing
the technical specifications, quantity
needed, expected time of delivery,
return policies, warranties, and so on

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Tourism,
to Success
LorraineBowen,
Key Terms (cont.)
• Organizational buying process

– The decision-making process by which
formal organizations establish the need
for purchased products and services and
identify, evaluate, and choose among
alternative brands and suppliers

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Tourism,
to Success
LorraineBowen,
Key Terms (cont.)
• Performance review
– The stage of an industrial buying
process in which a buyer rates its
satisfaction with suppliers, deciding
whether to continue, modify, or drop
the relationship

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LorraineBowen,
Key Terms (cont.)
• Problem recognition
process in which someone in a company
recognizes a problem or need that can
be met by acquiring a good or a service

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Key Terms (cont.)
• Product specification
– The stage of an industrial buying
process in which the buying
organization decides on and specifies
the best technical product
characteristics for a needed item

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to Success
LorraineBowen,
Key Terms (cont.)
• SMERF
– SMERF stands for social, military,
educational, religious, and fraternal
organizations. This group of specialty
markets has a common price-sensitive
thread.

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Tourism,
to Success
LorraineBowen,
Key Terms (cont.)
• Supplier search
process in which a buyer tries to find
the best vendor
• Supplier selection
process in which a buyer receives
proposals and selects a supplier or
suppliers

Map
Tourism,
to Success
LorraineBowen,

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Marketing for Hospitality and Tourism

Seventh Edition, Global Edition

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1. Understand the organizational buying

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4. List the eight stages of the

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Users Influencers Deciders

Approvers Buyers Gatekeepers

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Proposal Supplier Order-Routine Performance

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• General need description

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• Organizational buying process

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