Download - Organizational Buying Behavior
![Page 1: Organizational Buying Behavior](https://reader035.vdocuments.site/reader035/viewer/2022062523/577ccd1f1a28ab9e788b901e/html5/thumbnails/1.jpg)
Organizational buying behavior
B2B Marketing
![Page 2: Organizational Buying Behavior](https://reader035.vdocuments.site/reader035/viewer/2022062523/577ccd1f1a28ab9e788b901e/html5/thumbnails/2.jpg)
Mag. Maria Peer2
Organizational buying behavior Consumer vs. Organizational buying
behavior Main types of buying situations in B2B Stages of decision in B2B Roles in B2B procurement Influences on organizational behavior Buying centres in summary
![Page 3: Organizational Buying Behavior](https://reader035.vdocuments.site/reader035/viewer/2022062523/577ccd1f1a28ab9e788b901e/html5/thumbnails/3.jpg)
Mag. Maria Peer3
Consumer vs. Organizational buying behavior Decisions made by consumers are quite simple Organizational buying processes are more
complicated, there are several phases and steps Different buying behavior for different products and
target groups Simple consumer goods like food and beverages are
bought very spontaneously – influenced by advertising and product presentation
For premium consumer goods (expensive clothes, computers) – buying behavior is getting more rational – comparison
Private investment goods – price bargaining
![Page 4: Organizational Buying Behavior](https://reader035.vdocuments.site/reader035/viewer/2022062523/577ccd1f1a28ab9e788b901e/html5/thumbnails/4.jpg)
Mag. Maria Peer4
B2B products – organizational procurement starts
More than one person involved Buying process follows certain rules Price comparison, standardisation,
tenders = Ausschreibungen)
![Page 5: Organizational Buying Behavior](https://reader035.vdocuments.site/reader035/viewer/2022062523/577ccd1f1a28ab9e788b901e/html5/thumbnails/5.jpg)
Mag. Maria Peer5
B2B systems
involve more capabilities and greater workloads
From the buyer‘s and the supplier‘s side decision has more extensive consequences
![Page 6: Organizational Buying Behavior](https://reader035.vdocuments.site/reader035/viewer/2022062523/577ccd1f1a28ab9e788b901e/html5/thumbnails/6.jpg)
Mag. Maria Peer6
B2B facilities
Industrial plants Manufacturing installations Office buildings
![Page 7: Organizational Buying Behavior](https://reader035.vdocuments.site/reader035/viewer/2022062523/577ccd1f1a28ab9e788b901e/html5/thumbnails/7.jpg)
Mag. Maria Peer7
Main types of buying situations in B2B Straigtht rebuy – routine decision, repetitive process
(energy, office supplies, raw materials, wood, cigarettes), component suppliers for the automotive industry – little or no new information
Modified rebuy – more complicated but less sophisticated: cars, trucks, computers, consulting – modified rebuys are often treated too uncautious
New task – calls for thorough research – industrial plant – highest level of uncertainty. Strategic new tasks are of extreme strategic and financial importance (aircrafts, military equipment, infrastructure) – re-evaluation of alternatives and search for new information and new alternatives
![Page 8: Organizational Buying Behavior](https://reader035.vdocuments.site/reader035/viewer/2022062523/577ccd1f1a28ab9e788b901e/html5/thumbnails/8.jpg)
Mag. Maria Peer8
Buying phases
Problem recognition General need description Product specification Supplier search Proposal solicitation Supplier selection Order routine specification Performance review
![Page 9: Organizational Buying Behavior](https://reader035.vdocuments.site/reader035/viewer/2022062523/577ccd1f1a28ab9e788b901e/html5/thumbnails/9.jpg)
Mag. Maria Peer9
Stages of decision in B2B procurement Backhaus developed a widely usable model
to distinguish between 5 phases of procurement
Preliminary application (initiation phase) Tender proposal Negotiation Processing of order Warranty and services
![Page 10: Organizational Buying Behavior](https://reader035.vdocuments.site/reader035/viewer/2022062523/577ccd1f1a28ab9e788b901e/html5/thumbnails/10.jpg)
Mag. Maria Peer10
Preliminary application
Recognition of a problem (need) and a general solution
Released by top management = operating department or external consultants
Result request for an offer addressed to a number of potential suppliers
![Page 11: Organizational Buying Behavior](https://reader035.vdocuments.site/reader035/viewer/2022062523/577ccd1f1a28ab9e788b901e/html5/thumbnails/11.jpg)
Mag. Maria Peer11
Tender preparation phase
Determination of characteristics and quantity of needed items
Search for and qualification of potential sources
Supplier has to provide an offer Tries to be incomparable with his
competitors Customer tries to make the offer best
comparable
![Page 12: Organizational Buying Behavior](https://reader035.vdocuments.site/reader035/viewer/2022062523/577ccd1f1a28ab9e788b901e/html5/thumbnails/12.jpg)
Mag. Maria Peer12
Negotiation phase
= core selling process Comprises acquisition and analysis of
proposals, evaluation of proposals and selection of suppliers
![Page 13: Organizational Buying Behavior](https://reader035.vdocuments.site/reader035/viewer/2022062523/577ccd1f1a28ab9e788b901e/html5/thumbnails/13.jpg)
Mag. Maria Peer13
Processing phase/warranty/ service phase Contains selection of an order routine Realisation of the transaction along
with the fixation of after sales service tasks
![Page 14: Organizational Buying Behavior](https://reader035.vdocuments.site/reader035/viewer/2022062523/577ccd1f1a28ab9e788b901e/html5/thumbnails/14.jpg)
Mag. Maria Peer14
Roles in B2B procurement – buying center concept Group of people involved in the
buying process – buying center Webster/Wind model shows 5
different roles – not institutionalised This causes probleme in identifying
and targeting the right people within the decision process
![Page 15: Organizational Buying Behavior](https://reader035.vdocuments.site/reader035/viewer/2022062523/577ccd1f1a28ab9e788b901e/html5/thumbnails/15.jpg)
Mag. Maria Peer15
Buying center
Role keepers have different tasks – not mandatory
Buyer User Initiator Gatekeeper Influencer
![Page 16: Organizational Buying Behavior](https://reader035.vdocuments.site/reader035/viewer/2022062523/577ccd1f1a28ab9e788b901e/html5/thumbnails/16.jpg)
Mag. Maria Peer16
Buyer
Formal authority to sign contracts Member of purchasing department Influences the vendor selection Not in technical details Main criteria: price + terms and
conditions of the contract
![Page 17: Organizational Buying Behavior](https://reader035.vdocuments.site/reader035/viewer/2022062523/577ccd1f1a28ab9e788b901e/html5/thumbnails/17.jpg)
Mag. Maria Peer17
User
Person working with the product Interested in benefits and
unobstructed function of the product to buy
Large knowhow and preconceived opinion
![Page 18: Organizational Buying Behavior](https://reader035.vdocuments.site/reader035/viewer/2022062523/577ccd1f1a28ab9e788b901e/html5/thumbnails/18.jpg)
Mag. Maria Peer18
Influencer
A person with high technical knowledge and practical experience
definition of minimum requirements on technical or company standards
![Page 19: Organizational Buying Behavior](https://reader035.vdocuments.site/reader035/viewer/2022062523/577ccd1f1a28ab9e788b901e/html5/thumbnails/19.jpg)
Mag. Maria Peer19
Gatekeeper
Controls the flow of information within the buying center
Assistant of decision maker Influence by preparing the decision
and the relevant documents (Scriptum p 33-34 + summary)
![Page 20: Organizational Buying Behavior](https://reader035.vdocuments.site/reader035/viewer/2022062523/577ccd1f1a28ab9e788b901e/html5/thumbnails/20.jpg)
Mag. Maria Peer20
Decider
Right to say yes or no Mightiest person
![Page 21: Organizational Buying Behavior](https://reader035.vdocuments.site/reader035/viewer/2022062523/577ccd1f1a28ab9e788b901e/html5/thumbnails/21.jpg)
Mag. Maria Peer21
Initiator
Person who brings new ideas and solutions into the company
![Page 22: Organizational Buying Behavior](https://reader035.vdocuments.site/reader035/viewer/2022062523/577ccd1f1a28ab9e788b901e/html5/thumbnails/22.jpg)
Mag. Maria Peer22
Specific marketing considerations in the industrial facilities business Long decision taking process High risk Complex buying center The specific competitive situation
![Page 23: Organizational Buying Behavior](https://reader035.vdocuments.site/reader035/viewer/2022062523/577ccd1f1a28ab9e788b901e/html5/thumbnails/23.jpg)
Mag. Maria Peer23
Product policy
Focuses on innovation Has to care for high flexibility in
research and development And manufacturing and assembling
![Page 24: Organizational Buying Behavior](https://reader035.vdocuments.site/reader035/viewer/2022062523/577ccd1f1a28ab9e788b901e/html5/thumbnails/24.jpg)
Mag. Maria Peer24
Price
Strict bid and tender rules High transparency Add value with service offering to
achieve a differentiating position Another aspect: financing and
sourcing models
![Page 25: Organizational Buying Behavior](https://reader035.vdocuments.site/reader035/viewer/2022062523/577ccd1f1a28ab9e788b901e/html5/thumbnails/25.jpg)
Mag. Maria Peer25
Distribution policy
Focus on negotiation phase Provide excellent people in the selling
center High technical knowledge
![Page 26: Organizational Buying Behavior](https://reader035.vdocuments.site/reader035/viewer/2022062523/577ccd1f1a28ab9e788b901e/html5/thumbnails/26.jpg)
Mag. Maria Peer26
Communication
Problem solver! Proving success with comparable
tasks Reference projects!