buying behaviour in industries

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




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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

buying behaviour in industries

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