Analysis Report in Business Marketing

I.
Executive Summary
In order for the organization to be successful we must consider the consumer market
and buying behavior when developing the marketing mix. Buyer behavior is the actions
people the with regard to buying and using products. Being a marketers we must understand
consumer market and buying behavior, such as how raising or lowering a price will affect the
buyer’s perception of the product and therefore create a fluctuation in sales, or how a specific
review on social media can create an entirely new direction for the marketing mix based on
the comments (buyer/ input) of the target market.
Objectives:
To understand buyer behavior, one must:
a.) Know the strategies and methods to be used;
b.) Evaluate strategies and methods in planning B2B marketing with regards to
consumer and buyer behavior;
c.) Apply the following strategies and methods simplifying the market plan on how
customers make buying decisions.
II. Introduction/ Background

Business marketing is the practice of organizations, including commercial businesses,
governments and institutions, facilitating the sale of their products or services to other
companies or organizations that in turn resell them, use them as components in products or
services they offer, or use them to support their operations. Known as Industrial Marketing,
business marketing is also called business to business marketing or B2B marketing.
(http.//en.wikipedia.org/wiki/business_ marketing, 2007). B2B marketing is a larger in size of
revenues than B2C (Business-to-consumer) marketing because B2B marketing includes all
inter-organizational transactions involving suppliers, manufactures, agents, distributors,
retailers, transportation firms, financial enterprises and government departments. There are
characteristics of the B2B market.
The main differences between consumer markets and business markets include the
following:
1.) Purchase Volume: Business customers buy in much larger quantities than consumers.
Mars must purchase many truckloads of sugar to make one day’s output of M and MS. Home
Depot buys thousands of batteries each day for resale to consumers. The federal government
must use (and purchase) millions of pens each day.
2.) Number of Customers: Business marketers usually have far fewer customers than
consumer marketers. As a result, it is much easier to identify prospective buyers and monitor
current needs. For example, there are far fewer customers for airplanes or industrial crane
companies than there are for consumer goods companies since there are more than 125
million consumer households in the United States.
3.) Location of Buyers: Business customers tend to be much more geographically
concentrated in Silicon Valley and a few other areas.
4.) Direct Distribution: Business sales tend to be made directly to the buyer because such
sales frequently involve large quantities or custom-made items such as heavy machinery,
Consumer goods are more likely to be sold through intermediaries such as wholesalers and
retailers.
III. Scope
Consumers and businesses have processes for making decisions about purchases.
These decision-making processes are affected by cultural, social, individual, and
psychological factors.
H1 : A significant relationship between the consumer decision-making process and its factors.
IV. Methodology
The method used was the Factor Analysis to refine data.
The tool used was the open ended questions.
1.) How can the consumer purchase decision-making process flow?
2.) How do business markets differ from consumer markets?
Figure 1.
Cultural, Social,
individual, and
psychological
factors affects all
steps
Behavior
Recognition
Purchase
Search
Alternatives
V. Results
VI. Analysis of Results
The process starts with need recognition. Need recognition could be as simple as
running out of coffee. Need recognition could also take place over several months, such as
when repeated car repairs influence a consumer to make a decision to buy a new car. (Step 1
in (Figure)).
Next, the buyer gathers information. If the consumer is making a decision to purchase
a house, he or she might research information about financing, available homes, styles,
locations, and so forth (Step 2). Once the consumer has gathered the information, he or she
must evaluate alternatives (Step 3). For example, a consumer might eliminate all homes that
cost over $150,000 or are more than a 30-minute drive to work. After evaluating the
alternatives, the consumer will make a decision based on those alternatives. Then the
consumer makes the purchase decision, the decision to buy or not to buy (Step 4). Finally, the
consumer assesses the decision itself and his or her satisfaction with the purchase, which
would include not only the home, but the buying experience as well (Step 5).
Influences on Consumer Decision- Making

Cultural, social, individual, and psychological factors have an impact on consumer
decision-making from the time a person recognizes a need through post-purchase behavior.
We will examine each of these factors in more detail. It is important to understand the
relevance of these influences on consumer decision-making.
Culture. It is the set of values, ideas, attitudes, and symbols created to shape human behavior. When
you purchase roles within the family are influence by culture.
Social Factors. Consumers may also seek out others’ opinions for guidance on new products or
services, products with image-related attributes, or products where attribute information is lacking or
uninformative. They also learn from observing how members of their reference groups consume, and
they use the same criteria to make their own consumer decisions.
Individual Influences. A buying decisions are also influenced by personal characteristics unique to
each individual, such as gender and personality. Individual characteristics are generally stable over the
course of one’s life. For example, most people do not change their gender, and the act of changing
personality requires a complete reorientation of one’s life. Each consumer has a unique personality.
Personality is a broad concept that can be thought of as a way of organizing and grouping how an
individual typically reacts to situations.
Psychological Influences. An individual’s buying decisions are further influenced by psychological
factors such as perception, beliefs, and attitudes. They are the tools consumers use to recognize their
feelings, gather and analyse information, formulate thoughts and opinions, and take action. For
example, individuals will perceive different stimuli and process these stimuli in different ways
depending on whether the individual is sitting in class concentrating on an instructor’s lecture, sitting
outside of class talking to friends, or sitting at home watching television.
B2B Purchase Decision-Making. Business-to-business (B2B) buyer behavior and business markets
are different from consumer markets. Business markets include institutions such as hospitals and
schools, manufacturers, wholesalers and retailers, and various branches of government. The key
difference between a consumer product and a business product is the intended use.
The Decision-Making Process. The purchases that organizations make often involve greater risk than
purchases made by individual consumers. For this reason, businesses (and other organizations) tend to
base purchase decisions on more data and make purchase decisions based on rational decision-making
so purchases will optimize value for the organization and minimize risk.
VII. Conclusions
In presents the study of Consumer Behavior has become essential. The kings of the
markets are the consumers without consumers no business organization can run. All activities
of the business concerns end with consumers and consumer satisfaction.
Buyer behavior is what consumers and businesses do in order to buy and use
products. The consumer purchase decision-making process consists of the following steps:
recognizing a need, seeking information, evaluating alternatives, purchasing the product,
judging the purchase outcome, and engaging in post-purchase behavior. A number of factors
influence the process. Cultural, social, individual, and psychological factors have an impact
on consumer decision-making. The business purchase decision-making model includes the
following steps: need recognition, setting specifications, information search, evaluation of
alternatives against specifications, purchase, and post-purchase behavior. The main
differences between consumer and business markets are purchase volume, number of
customers, location of buyers, direct distribution, and rational purchase decisions. Companies
learn more about their target markets by conducting marketing research—the process of
planning, collecting, and analyzing data relevant to a marketing decision.
VIII. Recommendations
Reference
Business-to-business marketing, organizational buying behaviour, interfirm relationships and

network behaviour
December 2008
DOI: 10.1016/B978-0-7506-8566-5.50011-X
In book: The Marketing Book (pp.121-139)
https://opentextbc.ca/businessopenstax/chapter/buyer-behavior/
Pawar, sudarshan and Naranje, Sunil, 'A Study on Factors Influencing on Buying Behaviour of
Customers' (July 15, 2016). Research journal 2015- Institute of Science, Poona College of Computer
Sciences ISSN2394-1774 Issue II , Available at SSRN: https://ssrn.com/abstract=2810090

Analysis Report in Business Marketing

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I.

II. Introduction/ Background

Influences on Consumer Decision- Making

Business-to-business marketing, organizational buying behaviour, interfirm relationships and

In book: The Marketing Book (pp.121-139)

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