buying behaviour in industries
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8/9/2019 Buying Behaviour in Industries
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By: Shivani Sahu
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y Prod uct Exchangey Inf orm ation Exchangey Financial Exchangey Social Exchange
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y N eed Recogniti ony Researching Buye r Behavioury Segmenting use rs int o groupsy Researching an d Developing Prod uctsy Setting Pr icesy Ensu ring Pro per Deliver y, Installati on an d afte r Sales
Suppor t.y Making Prod ucts available at Right Ti m e, Right Place an d
Right Quantity y Allocating Ma rketing Res ources across Prod uct Linesy Comm unicating with Ta rget Cuct om er BEFORE, DURING
and AFTER a Sale.y Evaluating an d Cont ro lling Ong oing Ma rketing
programm s
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y Buygrid mod el useful in analyzing the pu rchasingdecision p rocess o ver various buying situati ons.
y Mod el incor porates- 3 buying situati ons
The new taskThe straight rebuyThe mod ified rebuy
- also, 8 phases in the buying decision process
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y New Task
* Problem or Need perceived by organizations is differentfrom past experience.
* Problem recognition triggered by internal / externalfactors.
* Decision makers & influencers enter into pblm. Solvingactivity.
* Obtain a variety of information to explore alternative soln. before a purchase can be made.
* Successful business marketer must carefully monitor thechanging needs of the org. & be prepared to respond to theneeds of new task buyers.
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y Straight Rebuy * When pu rchases a re continuing or recu rr ing,
little or no inf o. is requi red; routine response isthe n orm al buying patte rn.* If deliver y is prom pt, quality is c onsistent, &
price is reasonably com petitive, buye rs will notswitch supplie rs straight rebuy situati on
y Mod ifie d Rebuy * Buyers may feel that significant benefits like quality
impro vements or cost reducti ons m ay be derived f rom reevaluating supply alte rnatives.
* Situati on occurs often when the fi rm is d isplease d
with the pe rf orm ance of present supplie rs.
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No. Buying phases BuyclassesNew
task
Modified
task
Straight
rebuy
1. Anticipation & recognition of problem & ageneral solution
YES MAY BE NO
2. Determination of char. & qty. of neededitem
YES MAY BE NO
3. Description of char. & qty. of needed item YES YES YES
4. Search for & qualification of potentialsources
YES MAY BE NO
5. Acquisition & analysis of proposals YES MAY BE NO
6. Evaluation of proposals & selection of suppliers
YES MAY BE NO
7. Selection of an order routine YES YES YES
8.Performance & evaluation YES YES YES
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y Major task in dust rial markete r facing isidentifying th ose ind ividuals wh o are inv olved in pu rchasing decision p rocess.
y In in dust rial marketing, g roup of ind ividualsinv olved in pu rchasing decision p rocess are
referred to as - B uying center
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W h o is really inv o lve d?
Buying cente r is an inf orm al, cross-depa rtm ental decisionunit in which p rim ar y objective is the acquisiti on,impartati on, & processing of relevant inf o.
People in buying cente r inv olve f or reasons likey They may have f orm al responsibility ( or)y They may be a source of inf orm ation.
Various org. group mem bers that exe rt influence onpu rchasing decision a re
- Marketing- Manufactu ring- R & D- G ene ral manage ment- Purchasing
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P hase New Buy ModifiedRebuy
StraightRebuy
Need Identification
Engg.PurchasingR&DProduction
PurchasingProductionEngg.
ProductionPurchasing
Suppl ier se l ection
PurchasingEngg.R&DQuality control
PurchasingProductionEngg.
PurchasingProductionEngg.
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Type of company
Equipmentpurchase
Central Figure
Ch emica l man u fact u rer
H eat exchanger Purchasingmanager
Ind u stria l safety p rod u cts mfr.
Automatic drillingm/c
Engineer & VP of mfg.
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R oles in the Buying Cente r
y Initiat or begins the buying p rocessy User needs the p rod ucty G atekeepe r cont ro ls the fl o w of inf orm ation to othe r
m embersy Influence r d ispenses a d vice or sha res expe rtisey Decider m akes the final decisiony Buyer executes the pu rchase
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y Pr imar y ro lesDeciders - CON TROLLER Influence rs - R&D ENG IN EER
y Secondar y ro lesUsers - WORKER Buyers - PURCHASER G atekeepe rs - PURCHASING MA N A G ER
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