lecture week 3

8/20/2019 Lecture Week 3

1/11

PARTICIPANTS IN THEBUYING PROCESS

week 3.3


2/11

The Professional Buyer

Trained professional buyers typically carry out

buying in business-to-business markets:

– Purchasing agents

– Procurement officers

– Directors of materials management

Ne

w


3/11


4/11


5/11

The Buying Center !"U

The group of people in an organization who participate in abuying decision

Rolls:

– Initiator

– User

– Influencer

– Decider

– Approver

– Buyer – atekeeper

! Who:

Purchase

Buyer Initiator

User

atekeeper

Influencer

Decider

Users orothers thatre"uestpurchase

user

techs

Approver Authori#e

proposedaction

$n prod re"uor supplier

%ormalauthority


6/11

Roles of the !e#ision$"a%ing Unit

Initiator: starts the purchase

process &y recogni#ing a need

Users: their 'o&s re"uire that

they implement and evaluate

what was purchased Influencers& individuals who

affect the decision maker(s

final choice through

recommendations a&out which

vendors to include or which

products will &est meet needs

Decider ) people who decide

on product re"uirements

Approver / Decision maker:

person*committee that makes

the final decision

Buyer / Purchaser & any

person who actually &uys theproduct

Gatekeepers& controlinformation – +creens and filters


7/11

Buying #entre in'uen#es

Several participants with dierent interests, authority,status or persuasiveness and dierent decisioncriteria:

ngineering wants to ma!imize performance of the

product "roduction wants ease of use # reliability supply

$inance wants focus on economics

"urchasing wants to control operating and

replacement cost

%nions may emphasize safety

&uyers also may have personal motivations,perceptions and preferences

KI!"uyers

#$ne%pert"uyers

Wantthe"est"uyers

Wantitalldone

"uyers


8/11

Pur#hase (e#isions are )a(e *yin(i+i(uals,

'ndividuals are motivated by their own needs and

perceptions in attempting to ma!imise the rewards

(pay, advancement, recognition etc)

"ersonal needs motivate behaviour individual, but

organisational needs legitimate buying decisionprocess

"eople are not buying products: they buy solution totwo problems:

– $rganisation(s economic and strategic pro&lem

– Personal need for individual achievement * reward

Both rational and emotional decisions


9/11

Buying #entre targeting

*+ ho are the decision makers

&+ hat decision do they inuence

.+ hat is their level of inuence

/+ hat evaluation criteria do they use

. !ample disposible surgical gowns:. ad *: 0" "urchasing, operating room administrator,

surgeons

. ad &: 0" decides on disposible vs reusable gowns, admin

chooses a supplier

. ad .: administrator looks into absorbency, 1uality, cost

etc

. ad /: Surgeons inuence retroactively on satisfaction

chosen brand


10/11

Buying #entre targeting -

Small sellers concentrate on key buying inuencers

2arge sellers go for multi-level in-depth selling

*ccount management

.ommunication


11/11

Ne.t wee%&

*ssignment 3 by groups 4,3,5

ith your fellow group members you discuss to

select a company which is participating in the

brewery industry from your country+

/escribe the dierences between business-to-business and consumer marketing for the following

market elements: products, buyer behavior,

decision making, market structure, channels and

promotion+

/escribe the dierences between derived demand

and consumer demand+ 6ow does the leveraging

phenomenon occur7

hat is the dierence between value as perceived

by the customer and value as perceived by thesupplier+

lecture week 3

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