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B2B Marketing
Prof. Rubina D’Mello
7/30/2019 B2B Marketing - Session 3
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Organizational Buying and BuyerBehaviour
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THE BUSINESS BUYING
PROCESS
More complex than the consumerdecision process.
Takes place within formal organization’sbudget, cost, and profit considerations.
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Stages in the process flow model
of the buying decision process Definition stage
Problem definition Solution definition Product specification
Selection stage Solution provider search Acquire solution providers
Deliver stage Customised as needed Install/test/train
End game stage Operate solution Reach and result Evaluate outcomes Determine next set of needs
Problem recognition General need description Product specification
Supplier/source search Proposal solicitation Contract for supplier(s)
Make the transaction routine
Evaluate performance Resell the job
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Straight rebuy example :
buying office suppliesStage Result
Definition Monthly rebuy of office supplies; office manager fillsin the order form
Selection Minimal consideration; decided to use their regularsupplier; order faxed to supplier
Deliversolution Supplier delivers order
End game Supplies used; invoice arrives and is paid; suppliercalls to check on satisfaction
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New Task example : acquiring automated
sales and customer management system
Stage Result
Definition Recognised problem; analysed with help of consultant; supplier helps write specifications andRFP; suppliers submit proposals
Selection Discussions and negotiations with suppliers; supplierselected (the one who helped initially); contratnegotiated and signed
Deliversolution
System delivered in modules; fested, user trained,system modified as needed
End game System operated; result observed and analysed;discussions begin with supplier for acquisition of new
modules and upgrades
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Intricacies of the buying
decision process Individual roles
Interaction creates fluidity
Relationships and loyalty
Three kinds of needs
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Forces influencing organisational
buying behaviour
OrganisationalBuying
behaviour
EnvironmentalForces
Organisationalforces
Group forces
Individual
Forces
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Environmental forces Economic Influences
Tachnological influences
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Organisational forces Goals, objectives and Strategies
Organizational positioning of purchasing
Centralization of purchasing
Centralization vs decentralization
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Group forces Roles
Relative influence
Patterns of interaction of buyingdecision participants
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Individual forces Job function
Past experience
Buying motives
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Questions for the Industrial
Salesperson1. Which member takes part in the
buying process?
2. What is each members relativeinfluence 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