2006 Pearson Education, Inc.

Marketing for Hospitality and Tourism, 4th edition

Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Chapter 7

Organizational
Buyer
Behavior of
Group Market
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
The ideal salesperson in the
company meetings segment isnt a
salesperson in the traditional sense,
but rather the problem-solver.

Robert C. Mackey
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Chapter Objectives
Understand the organizational buying
process

Identify and discuss the importance of
the participants in the organizational
buying process
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Chapter Objectives
Identify the major influences on
organizational buyers

List the eight stages of the
organizational buying process

Identify and describe the group markets
in the hospitality industry
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
The Organizational Buying
Process
Market Structure and Demand

Organizational demand is derived
demand; it comes ultimately from the
demand for consumer goods or
services
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
The Organizational Buying
Process
Organizational buying decisions tend to
be more complex than consumer
decisions

The organizational buying process
tends to be more formal than the
consumer process
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Participants in the
Organizational Buying Process
A buying center is all those individuals
and groups who participate in the
purchasing decision-making process,
who share common goals and the risks
arising from the decisions
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

U n e x p e c t e d
S i t u a t i o n a l
F a c t o r s

Attitudes
of
Others
Participants in the Organizational
Buying Process
Ethical
Decision-
Making Unit
of a Buying
Organization
is Called
Its Buying
Center.
Users
Influencers
Buyers
Gatekeepers
Roles Include
Deciders
Approvers
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Major Influences on
Organizational Buyers
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Organizational Buying
Decisions
1. Problem Recognition

2. General Need
Description

3. Product
Specification

4. Supplier Research
5. Proposal Solution

6. Supplier Selection

7. Order-Routine
Specification

8. Performance Review
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Problem Recognition
Problem recognition is when someone
in a company recognizes a problem or
need that can be met by acquiring a
good or a service

Problem recognition can occur because
of internal and external stimuli
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
General Need Description
General need description is when a
company describes the general
characteristics and quantity of a needed
item

What are some items that would be
included in a general needs description
for a training meeting?
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Product Specification
Product specification is when the
buying organization decides on and
specifies the best technical product
characteristics for a needed item
What are some items that would be
included in a product specification
description for a training meeting?
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Supplier Search
Supplier search is when a buyer tries
to find the best vendor

What are the best ways for buyers to
identify suppliers?

2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Proposal Solution
Proposal solution is when qualified
suppliers are invited to submit proposals

What are some important tools for
writing and researching a proposal?
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Supplier Selection
Supplier selection is when a buyer
receives proposals and selects a
supplier or suppliers

What are the six attributes that meeting
planners consider when selecting a
location

2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Order-Routine Specification
Order-routine specification when 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
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Performance Review
Performance review is when a buyer
rates its satisfaction with suppliers,
deciding whether to continue, modify, or
drop the relationship
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Group Business Markets
Conventions
Association Meetings
Corporate Meetings
Incentive Travel
SMERFs Social, military,
educational, religious, and fraternal
organizations

2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Dealing with Meeting Planners
The hotel salesperson must look for items
that will create value for the meeting
planner without creating costs or
sacrificing revenue for the hotel

Meeting planners expect timeliness and
efficiency
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
The Corporate Account and
Corporate Travel Manager
Highly sought after segment

10% to 40%

More likely to use hotel services
(restaurants, laundry, etc.)
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Best Practice
Don Walter Convention Liaison
Councils Hall of Leaders
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Key Terms
Buying center

Convention

Corporate meeting

Derived demand

General need description
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Key Terms
Incentive travel

Order-routine specification

Organizational buying process

Performance review

Problem recognition
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Key Terms
Product specification

SMERF

Supplier search

Supplier selection
2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens