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Principles of Marketing - Philip Kotler

Chapter 6. The market of enterprises and the behavior of customers on behalf of companies

goals

After reading this chapter, you should be able to:

1. Tell the difference between marketing companies in the market of consumer marketing.

2. Describe the main factors influencing the customer on behalf of the companies.

3. List the main stages of the process of making purchasing decisions for the needs of production.

4. Explain how buyers make decisions public sector.

catering companies compete for the student market

Colleges should not only teach their students, but also to feed them. To do this, there are two ways. College can arrange their own catering service, hiring staff, purchasing everyday products and ensuring the maintenance of cleanliness. On the other hand, he can sign a contract to hire a commercial company catering services. Today resorted to the second option more than 31 thousand. Faculties and colleges across the country. They use the services of 150 commercial businesses catering, which are ready to be engaged in the development and the menu and food preparation and cleanliness.

Select a suitable company may catering department staff logistics supply college, student representatives, sales manager, and even the rector. They seek to enter into a contract, which would provide students with a diverse set of dishes, the possibility of obtaining the second and third portions and reasonable relationship between meat, flour and food products at a price not exceeding the amount of desalinated per student. Before you make a choice, the reputation of each of the major commercial firms catering evaluated in terms of food quality, service and reliability. On the other hand, commercial catering firms wishing to enter into contracts, are becoming more demanding. They are moving away from contracts with fixed fees in favor of contracts with escalation clauses. Sometimes the company makes a proposal to lower than that of other competitors, prices, and then - under pressure from sharply rising costs - starts to raise prices or reduce the quality, the amount of food or service. The most advanced commercial catering company is constantly looking for ways to reduce costs, to be able in the course of the struggle for a contract to offer low prices. The largest catering company "ARA Food Services Company" has developed products procurement system, preparing meals and service, based on a computer, which, inter alia, oversees the serving sizes and forecasts that are likely to be chosen by students from the selector menu. The company "Saga Corporation" is an educational campaign against waste, aimed at students who leave a lot on their plates of half-eaten food. Both companies are trying to help their customers - colleges - to reduce costs, so that they were profitable in the future to use the services of just such supplier product literature1.

Firms selling something to other organizations, such as manufacturers, wholesalers, retailers and government agencies should make every effort to understand the needs of their customers, their resources, policies and procedures of the commission purchases. It is also necessary to take into account a number of considerations, not usually found in consumer marketing practice.

1. The organizations buy goods and services for profit, reduce costs, meet the needs of its internal customers, the performance of any public or legal obligations.

2. The decision-making process of the procurement for the needs of the organization formally participates greater number of persons than when it comes to consumer purchases. As a rule, members of decision-making have different responsibilities within the organization and approach to procurement decisions various criteria.

3. Procurement Agents must follow the official settings, limits and other requirements of their organizations.

4. Another feature not typically encountered in the process of consumer purchases, is the practice of requesting bids, proposals, drafting of contracts - sale, etc...

Enterprises - is a huge market of raw materials, components, devices, accessories, supplies and business services. From Table. 9 shows that the procurement of goods and services are engaged in more than 16 million. Organizations.

Table 9. The number and variety of customers on behalf of companies

Procurement for the needs of the enterprise - a "decision-making process by which the official organization ascertains that need to be procured from the goods and services, as well as identifies, evaluates and selects specific brand of goods and providers of specific numbers available on the market." 2

In this chapter we will look at three types of enterprise market: the industrial market, the market of intermediate sellers and the market for government agencies. When meeting with each of them, we will consider the following questions:

1. Who acts in this market?

2. What purchasing decisions take buyers?

3. Who is involved in making purchasing decisions?

4. What has a major impact on customers?

5. Exactly how buyers make purchasing decisions?