organisational buyer behaviour
TRANSCRIPT
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Industrial Marketing
Organisational Buyer
Behaviour
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Purchasing Function Goals
To address the needs of business customers ofall types.
May have to juggle a number of different
objectives that clash.
The Goals ofPurchasing
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Total Cost Considerations of aProduct or Service
Factors that drive total cost.
Acquiring and managing costs.
Quality, reliability over the life cycle.
The value a firm/ customers.
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Government Procurement
1. Defense-said to be the largest enterprise
1. Other Governmental-procurement isadministered by variety of agencies.
2. These are guided by detailed written
procedures
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Three Buying Situations(slide 1 of 4)
1. New task
2. Modified rebuy
3. Straight rebuy
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Three Buying Situations1. New Task (slide 2 of 4)
New taskthe problem or need is totallydifferent from previous experiences.
Significant amount of information is required.
Buyers operate in the extensive problem
solving stage.
Buyers lack well defined criteria.
Lack strong predispositions toward a solution.
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Three Buying Situations2. Modified Rebuy (slide 3 of 4)
Modified rebuydecision makers feelthere are benefits to be derived by
reevaluating alternatives.
Most likely to occur when displeased with
the performance of current supplier.
Buyers operate in the limited problem
solving stage. Buyers have well defined criteria.
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Three Buying Situations3. Straight rebuy (slide 4 of 4)
Straight rebuythe problem or need isa recurring or continuing situation.
Buyers have experience in the area in
question.
Require little or no new information.
Buyers operate in the routine problem
solving stage.
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Forces Influencing Organizational
Buying BehaviorEnvironmental
Forces
Organizational
Forces
Group
Forces
Individual
Forces
Organizational
Buying
Behavior
Economic Outlook:
Domestic & Global
Pace of TechnologicalChange
Global Trade Relations
Goals, Objectives, and
Strategies
Organizational Positionof Purchasing
Roles, relative
influence, and patterns
of interaction of buying
decision participants
Job function, past
experience, and buying
motives of individual
decision participants
A projected change in
business conditionscan drastically alter
buying plan.
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Questions for the Industrial
Salesperson
1. Which member takes part in the buying
process?
2. What is each members relative influence
in the decision?
3. What criteria is important to members in
the evaluation process?
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Members of the buying center assume different roles
throughout the procurement process.
Clues for
Identifying
PowerfulBuying
Center
Members
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Perceived Risk Components
1.Uncertainty about the outcomes
of a decision.
2.The magnitude of
consequences associated withmaking the wrong selection.
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Relationship MarketingCenters On:
Establishing,
Developing and
MaintainingSuccessful exchanges with
customers.
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Stages of Relationship
Marketing1. Selecting customer accounts.
2. Developing account specific offerings.
3. Implementing relationships strategies.4. Evaluating relationship strategy
outcomes.
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Types of Relationships
The buyer seller relationships are positioned on acontinuum with transactional exchange and
collaborative exchange serving as the end points.
The Relationship Spectrum
e a ons p pec c
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e a ons p- pec cAdaptations
Involve:Investments in processes.
Investments in products.
Investments in procedures.
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Market & Situational Factors(Slide 1 of 2)
1. Supply Market Dynamismconsiders
the variability in a firms supply market.
Typical Variations
changing technology
frequent price changes
product shortages
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Market & Situational Factors(Slide 2 of 2)
2. Availability of Alternativesthe degree to
which alternative sources are available.
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Buyers and sellers craft different types of relationships in response to:
a) market conditions and
b) characteristics of the purchase situation.
The Spectrum of Buyer-Seller Relationships
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Strategy Guidelines
1. Determine which type of relationship matches the
purchasing situation and supply markets conditions for a
particular customer.
2. Develop a strategy that is appropriate for each strategy
type.
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Strategy Guidelines & Customer
Collaborative
Customers.
Transactional
Customers.
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Earning Customer Loyalty:How To
Provide superior value ensuring high
satisfaction.
Nurturing trust and mutual
commitments.
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Retaining Customers Through:
Evaluating relationships.
Demonstrating
commitment.