19-1

CHAPTERCHAPTER 1919

ORGANIZATIONAL ORGANIZATIONAL

BUYER BUYER

BEHAVIORBEHAVIOR

19-2

Organizational Buyer BehaviorOrganizational Buyer Behavior

Overall Model of Organizational Buyer BehaviorOverall Model of Organizational Buyer Behavior

19-3

Organizational Purchase ProcessOrganizational Purchase Process

Decision-Making UnitDecision-Making Unit

Purchase SituationPurchase Situation

Steps in the Organizational Decision ProcessSteps in the Organizational Decision Process

The Internet’s Role in the Organizational Decision The Internet’s Role in the Organizational Decision ProcessProcess

19-4

Organizational Purchase ProcessOrganizational Purchase Process

Decision-Making UnitDecision-Making Unit

Can Vary Over the Product Life Cycle: Microprocessor Can Vary Over the Product Life Cycle: Microprocessor Purchasing by OEMPurchasing by OEM

19-5

Organizational Purchase ProcessOrganizational Purchase Process

Information SearchInformation Search

Information search can be both formal and informal

The formal information The formal information search process can includesearch process can include

- site visits to evaluate a potential vendor

- lab tests of a new product or prototype, and

- investigation of possible product specification

The informal information The informal information search process can includesearch process can include

- discuss with sales representatives

- attend trade shows

- read industry-specific journals

19-6

Organizational Purchase ProcessOrganizational Purchase Process

The Internet’s Role in the Organizational Decision ProcessThe Internet’s Role in the Organizational Decision Process

The Internet rivals salespeople, trade shows, and trade magazines as a source of information and influence:

19-7Slide 7-9

External Factors Influencing External Factors Influencing Organizational CultureOrganizational Culture

Firmographics

Size

Activities and Objectives

Location

Industry Category

Organizational Composition

Macrosegmentation

19-8

CHAPTERCHAPTER 2020

MARKETING MARKETING REGULATION REGULATION

AND AND CONSUMER CONSUMER BEHAVIORBEHAVIOR

19-9

Regulation and Marketing to ChildrenRegulation and Marketing to Children

Self-Regulatory Body

The National Advertising Division of the Council of Better Business Bureaus is the primary self-regulatory body of the American advertising industry.

The Children’s Advertising Review Unit (CARU) is a special unit created by this body to review advertising aimed at children.

19-10

Regulation and Marketing to ChildrenRegulation and Marketing to Children

Information-Processing-Related Guidelines of CARUInformation-Processing-Related Guidelines of CARU

Comprehension ConcernsComprehension Concerns

19-11

Regulation and Marketing to ChildrenRegulation and Marketing to Children

CARU Guidelines Relating to Message ContentCARU Guidelines Relating to Message Content

Five General Guidelines:

Communicate in truthful manner using understandable language

Address advertising to positive social behaviors

Present positive pro-social role models

Contribute positively to the parent-child relationship

Avoid marketing inappropriate products directly to children

19-12

Regulation and Marketing to ChildrenRegulation and Marketing to Children

Sometimes referred to as the “Third Screen,” cell phones are an increasingly integral part of our lives.

Marketers see younger children as the next big growth market.

Mobile Marketing EffortsMobile Marketing Efforts

• ringtonesringtones

• mobile gamesmobile games

• text-in conteststext-in contests

Mobile Marketing and ChildrenMobile Marketing and Children

19-13

Regulation and Marketing to ChildrenRegulation and Marketing to Children

Commercialization of SchoolsCommercialization of Schools

There has been ongoing concern and controversy around the commercialization of elementary and high schools.

The following are commercialization activities as classified by the Consumers Union:

In-school AdsIn-school Ads Ads in ClassroomAds in Classroom Corporate-sponsored Educational Materials and ProgramsCorporate-sponsored Educational Materials and Programs Corporate-sponsored Contests and Incentives ProgramsCorporate-sponsored Contests and Incentives Programs

19-14

Regulation and Marketing to ChildrenRegulation and Marketing to Children

Internet Marketing and ChildrenInternet Marketing and Children

Children are major users of the internet, and marketers use the Internet to communicate with kids.

Two major concerns have emerged:

1. Invading children’s privacy

2. Exploitation of children through manipulative sales techniques, e.g., adver-games.

19-15

Regulation and Marketing to ChildrenRegulation and Marketing to Children

Children’s Online Privacy IssuesChildren’s Online Privacy Issues

Children’s Online Privacy Children’s Online Privacy Protection Act (COPPA)Protection Act (COPPA)

Online privacy relates to collection and use of information from websites

COPPA passed by Congress in 1998

Authorizes the FTC to develop specific rules to implement the provisions of the act

19-16Slide 7-9

Regulation and Marketing to AdultsRegulation and Marketing to Adults

Marketing CommunicationsMarketing Communications

Personal Information Personal Information

Consumer Information AccuracyConsumer Information Accuracy