session 2 - consumer behavior and marketing strategy

8/6/2019 Session 2 - Consumer Behavior and Marketing Strategy

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Consumer Behavior andmarketing Strategy

Industrial BuyingBehavior

Dated 22ndAugust 2008

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Meaning and definition

It is the decision making process by

which formal organisation establish the

need for purchase of products and

services and identify evaluate and

choose amongst alternative brands and

suppliers

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Organisational Buying

BehaviorOrganisations main concern is

Utility

Quality

Price

Performance

Delivery Schedule

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ImplicationThere should be a need

There should be an identification of a

supplier

Different suppliers and brands should

be evaluated and finally

A vendor should be selected as per the

procedure of the organisation

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Items of Industrial

BuyingIndustrial Inputs

Consumable store items

Other consumable in office and works

Components of the final product

Machinery and other industrial goods

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Process of buying

Determine requirement of various

products

Sort out the products in different groups

Decide the brand to be purchased

Decide the price range

Negotiate the price and fix the price for

the bulk.

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Models based on

different Buyer BehaviorInteraction and relationship model

Industrial marketing and purchasing model

Models based on channel relationship

Buyers and seller models on relationship

Models of selling effectiveness

Models of negotiationAdoption and Diffusion model

Decision system model

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Interaction and

relationship modelIt has been presumed that parties,

buyers and sellers have mutual interest

in the deal and the situation shapes the

relationship

Eg : Wheat procurement by PEPSI

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Industrial marketing and

purchasing modelIt assumes that the behavior is

dependent upon environment market

structure, dynamism, internationalism,

positioning in manufacturing and social

system

Eg : Airways

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Models based on

channel relationshipFocus on the relations between sellerand organisation in the distribution

system.Anderson and Weitz has hypothesisedrelationship

It is based on goal consequence culturalsimilarity and perceived competence.

Eg Shopping Malls

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Buyers and seller

models on relationshipEmphasis has been placed on

awareness, exploration, expansion and

commitment, which deepens and

strengthens relationship

Eg GUANXI -

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Models of selling

effectivenessFocus on downstream buyer behavior

In this model concern for the customer

and concern for sale are two importantparameters that order must be procuredat all costs and to achieve it rightinformation should be procured at theright time.

Eg Mango Pulp procurement

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Models of Negotiation

Emphases that seller must not stick to

one price and charge lower price when

situation so decides to obtain order

There are certain buyers who will not

buy on quoted price and love

negotiationsEg . Fish Auction

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Adoption and Diffusion

modelIs with regard to adopting new products

in industrial market. It desires that

buyers must develop interest in newproducts so that sales for them may be

developed

Eg Technologies of Fountain Pen Ball Point Pen Gel Pen

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Decision system modelDecision system models are based on

decision system analysis.

Eg Machinery for a plant

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Model of service sector

buying behaviorModel of service sector buying relates

to those organisation who do not

produce goods but deal in service

In service sector buying the greatest

emphasis is placed on quality of

service.Medical services and equipment

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Behavior of service

buyer depend onReliability

Quality for service

Availability

Convenience

Dealings of staff of the service providerPrice of the service

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Marketing strategies

Perception

Psychology

Region

Income

Conditioning of ConsumerLevel ofInformation

Level of Education

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session 2 - consumer behavior and marketing strategy

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