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• Module overview
• 1. What is marketing?
  • 1.1 What is marketing?
    • 1.1.1 Different uses of the term 'marketing'
    • 1.1.2 Different levels of marketing
    • 1.1.3 A definition of marketing
  • 1.2 Clarification of the marketing definition
    • 1.2.1 Outputs
    • 1.2.2 Inputs
    • 1.2.3 Exchange
  • 1.3 Development of marketing
  • 1.4 Types of marketing
  • 1.5 What is a service?
    • 1.5.1 Characteristics of services
    • 1.5.2 A service definition
    • 1.5.3 Classifications of services
    • 1.5.4 Services: a growth sector
  • 1.6 Marketing in the maritime industry
  • 1.7 Towards social and ethical responsibility
    • 1.7.1 Common criticisms of marketing
    • 1.7.2 Social impact of marketing
  • 1.8 Summary

• 2. Strategic marketing management

  • 2.1 Introduction
  • 2.2 The environments
    • 2.2.1 External environment
    • 2.2.2 Internal environment
    • 2.2.3 Mission statements and objectives
    • 2.2.4 Resources
  • 2.3 Controllable factors
  • 2.4 The strategic marketing management process
    • 2.4.1 Planning
    • 2.4.2 Implementation and control
    • 2.4.3 Marketing plan
  • 2.5 Types of marketing strategies
    • 2.5.1 Strategic considerations for services
  • 2.6 Summary

• 3. Marketing research and information systems

  • 3.1 Introduction
  • 3.2 The marketing information system (MIS)
  • 3.3 Marketing research
    • 3.3.1 Scope of research
  • 3.4 The marketing research process
    • 3.4.1 Step 1: defining the problem
    • 3.4.2 Step 2: analysing the situation
    • 3.4.3 Step 3: obtaining problem-specific data
    • 3.4.4 Step 4: interpreting the data
    • 3.4.5 Step 5: solving the problem
  • 3.5 Summary

• 4. Consumer and B2B buying behaviour

  • 4.1 Introduction
  • 4.2 Consumer buying behaviour
    • 4.2.1 Psychological influences
    • 4.2.2 Cultural and social influences
    • 4.2.3 The decision-making process
  • 4.3 B2B buying behaviour
    • 4.3.1 Business buying processes
    • 4.3.2 Main types of business markets
  • 4.4 The buying of services
  • 4.5 Summary

• 5. Segmenting markets, targeting and positioning

  • 5.1 Introduction
  • 5.2 Market segmentation
    • 5.2.1 Dimensions used to segment markets
  • 5.3 Target markets
  • 5.4 Market positioning
  • 5.5 Summary

• 6. Product planning and decisions

  • 6.1 Introduction
  • 6.2 Product concepts
    • 6.2.1 The total product concept
    • 6.2.2 Product classifications
    • 6.2.3 The service offering
  • 6.3 The product mix
  • 6.4 Branding
  • 6.5 Packaging
  • 6.6 Product life-cycle
  • 6.7 Product development
  • 6.8 Summary

• 7. Pricing considerations

  • 7.1 What is the 'price' of a product?
  • 7.2 Pricing environments
  • 7.3 Pricing objectives
  • 7.4 Pricing policies
    • 7.4.1 Discount and allowance policies
  • 7.5 Price setting
    • 7.5.1 Cost-oriented price setting
    • 7.5.2 Demand-oriented price setting
    • 7.5.3 The price setting process
  • 7.6 Summary

• 8. Marketing logistics networks

  • 8.1 Introduction
  • 8.2 Definition of distribution
  • 8.3 Channels of distribution
    • 8.3.1 Selecting channels
    • 8.3.2 Main Australian channels
    • 8.3.3 Distributing services
    • 8.3.4 Managing channels
  • 8.4 Managing distribution
  • 8.5 Distribution and ports
  • 8.6 Summary

• 9. Integrated marketing communications

  • 9.1 Communication with a purpose
  • 9.2 Marketing communication process
  • 9.3 The promotional mix
  • 9.4 Managing advertising
  • 9.5 Managing publicity and public relations
  • 9.6 Managing personal selling
  • 9.7 Managing sales promotion
  • 9.8 Summary

• 10. E-commerce and direct marketing

  • 10.1 Introduction
  • 10.2 Direct marketing
  • 10.3 Electronic commerce
    • 10.3.1 Successful e-commerce
  • 10.4 Online marketing
  • 10.5 Using customer databases
  • 10.6 Privacy issues
  • 10.7 Summary

• 11. Managing the service encounter

  • 11.1 Introduction
  • 11.2 Participants
    • 11.2.1 Customers
    • 11.2.2 Service personnel
  • 11.3 Managing the service encounter
    • 11.3.1 Role theory
    • 11.3.2 Script theory
  • 11.4 Process
    • 11.4.1 Operations management and services
    • 11.4.2 Manufacturing efficiency
    • 11.4.3 Improving services efficiency
    • 11.4.4 Matching supply and demand
  • 11.5 Physical evidence
    • 11.5.1 Types of physical evidence
    • 11.5.2 Space demarcation
    • 11.5.3 Atmospherics
    • 11.5.4 Servicescapes
  • 11.6 Summary

• 12. Customer relationship management

  • 12.1 Introduction
  • 12.2 Customer relationship management
  • 12.3 Customer satisfaction
    • 12.3.1 Benefits of customer satisfaction
  • 12.4 Service quality
    • 12.4.1 Conceptual model of service quality
    • 12.4.2 SERVQUAL
  • 12.5 Summary

4.3.1 Business buying processes

Figure 4.2 provides a useful model of business buyer behaviour that we can contrast with our consumer black box model in Figure 4.1.

Figure 4.2 A model of business buyer behaviour
Source: Kotler et al. (2004, p. 288)

Consider this

Compare the above model with the black box model of consumer behaviour in Figure 4.1. What do you think are the main similarities? What do you think are the main differences?

The basic difference between the two models is in the middle segment: a black box in the case of consumers, an organisation in the case of business markets. We will be giving our attention to the two main components of the middle segment: the buying centre and the buying decision process. Table 4.2 is included here to help remind you of some of the differences between business and consumer markets.

Table 4.2 Major differences between business and consumer markets

Characteristic	Business market	Consumer market
Demand	Organisational	Individual
Purchase volume	Larger	Smaller
Number of customers	Fewer	Many
Location of buyers	Geographically concentrated	Dispersed
Distribution structure	More direct	More indirect
Nature of buying	More professional	More personal
Nature of buying influence	Multiple	Single
Type of negotiations	More complex	Simpler
Use of reciprocity	Yes	No
Use of leasing	Greater	Lesser
Primary promotional method	Personal selling	Advertising

Source: Summers et al. (2003, p. 75)

The buying centre concept is useful in understanding the various influences on the business buying process. The business marketer, such as a port, terminal or shipping service, needs to be aware that in any purchasing situation there is not only the buyer, but users, influencers, deciders and information gatekeepers as well. These are discussed for you on pages 292-293 of Kotler et al. (2004). All these roles comprise the buying centre, and its size and composition vary depending on the nature of the purchase as well as the type of business.

The buying decision process has a number of major steps that vary from text to text. The following table, as you will observe, has close counterparts to consumer buying.

Table 4.3 Steps in a business buying decision

Anticipate or recognize a problem/need/opportunity and a general solution Determine the characteristics and quantity of a needed good or service Describe precise product specifications and critical needs Search for and qualification of potential sources Acquisition and analysis of proposals Evaluation of proposals and selection of suppliers Selection of an order routine Performance feedback and evaluation

Source: Based on Boone and Kurtz (2005, pp. 299-301)

Now that you have thought about the steps in the business decision-making process, and given that they are reasonably self-explanatory, we will not address them further. Instead turn to the following reading which will also describe the three main types of decisions which business buyers make, namely:

• new task (or new buying)
• modified rebuy
• straight rebuy.

The reading will also elaborate on what we have discussed above and includes detail on four approaches for evaluating and buying products.

In your text

Kotler et al. (2004) Chapter 8, pp. 288-302 'Business buying behaviour'.

Do not forget that business buying is done by individuals or groups of individuals. Thus, social and psychological factors such as culture and personality do play a part. An astute marketer must endeavour to understand the interpersonal dynamics within the buying organisation and between it and his/her own organisation.

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