Philip Kotler was of the opinion that organizational buying is the decision –making process by which formal organizations establish the need for purchased products and services, then identify, evaluate, and choose among alternative brands and suppliers. The business market consists of all the organizations that acquire goods and services used in the production of other products or services that are sold, rented, or supplied to others. Compared to consumer markets, business markets generally have fewer and larger buyers,a closer customer-supplier relationship, and more geographically concentrated buyers. Demand in the business market is derived from demand in the consumer market and fluctuates with the business cycle. Nonetheless, the total demand for many business goods and services is quite price-inelastic. Business marketers need to be aware of the role of professional purchasers and their influencers, the need for multiple sales calls, and the importance of direct urchasing, reciprocity, and leasing. The buying center is the decision-making unit of a buying organization. It consists of initiators, users, influencers, deciders, approvers,buyers, and gatekeepers. To influence these parties, marketers must be aware of environmental, organizational, interpersonal, and individual factors. The buying process consists of eight stages called buyphases : (1) problem recognition, (2) general need description, (3) product specifications, (4) supplier search, (5) proposal solicitation, (6) supplier selection, (7) order-routine specification, and (8) performance review. Business marketers must form strong bonds and relationships with their customer and provide them added value. Some customers, however, may prefer more of a transactional relationship. The institutional market consists of schools, hospitals, nursing homers, prisons, and other institutions that provide goods and services to people in their care, Buyers for government organizations tend to require a great deal of paperwork from their vendors and to favor open bidding and domestic companies. Suppliers must be prepared to adapt their offers to the special needs and procedures found in institutional and government markets.

Target marketing involve three activities; market segmentation, market targeting, and market positioning. Markets can be targeted at four levels; segments, niches, local areas, and individuals. Market segments are large, identifiable groups within a market. A niche is a more nar-rowly defined group. Marketers appeal to local markets through grassroots marketing for trading areas, neighbor-hoods, and even individual stores. More companies now practice individual and mass customization. The future is likely to see more self-marketing, a from of marketing in which individual consumers take the initiative in designing products and brands. There are two bases for segmenting consumer markets; consumer characteristics and consumer responses. The major segmentation variables for consumer markets are geographic, demographic, psychographic, and behavioral. These variables can be used singly or in combimnation. Business marketers use all these variables along with operating wvariables, purchasing approaches, and situational factors. To be useful, market segments must be measurable, substantial, accessible, differentiable, and actionable. A firm has to evaluate the various segments and decide how many and which ones to target; a single segment, several segments, a specific product, a specific market, or the full market. If it serves the full market, it must choose between differentiated and undifferentiated marketing. Firms must also monitor segment relationships, and seek economies of scope and the potential for marketing to supersegments. They should develop segment-by-segment invasion plans. Marketers must choose target markets a socially responsible manner.

Deciding on positioning requires the determination of a frame of reference by identifying the target market and the nature of the competition and the ideal points-of-parity and points-of-difference brand associations. To determine the proper competitive frame of refence, one must understand consumer behevior and the considerations consumers use in making brand choices. Points-of- difference are those associations unique to the brand that are also strongly held and favorable evaluated by consumers. Points-of-parity are those associations not nec-essarily unique to the brand but perphaps shared with other brands. Category point-of-parity associations are associations consumers view as being necessary to a legitimate and credible product offering within a certain category. Competitive point-of-parity assocoiations`are those associations designed to negate competitor’s points-of-difference. The key to competitive advantage is product differentiation. A market offering can be differentiated along five dimensions: product (from, features, performance quality, conformance quality, durability, reliability, repairability, style, design); services (order ease, delivery, installation, customer training, customer consulting, maintenance and repair, miscellaneous services); personnel, channel, or image (symbols, media, atmosphere, and events). Because economic conditions change and competitive activity varies, companies normally find it necessary to reformulate their marketing strategy several times during a product’s life cycle. Techn ologies, product forms, and brands also exhibit life cycles with distinct stages. The general sequence of stages in any life cycle is introduction, growth, maturity, and decline. The majority of products today are in the maturity stage. Each stage of the product life cycle calls for different marketing strategies. The introduction stage is marked by slow growth and minimal profits. If successful, the product enters a growth stage marked by rapid sales growth and increasing profits. There follows a maturity stage in which sales growth slows and profits stabilize. Finally, the product enters a decline stage. The company’s rask is to identify the truly weak products; develop a strategy for each one; and phase out weak products in a way that minimizes the hardship to company profits, employees, and customers. Like products, markets evolve through four stages; emergence, growth, maturity, and decline