Marketing principles K&A chapter 6 MOGHIMI

Lecturer: Bahman Moghimi
Doctor of Business Administration
M.Sc. Of “Industrial Marketing & e-Commerce”

Business Markets and Business Buyer Behavior
University of Georgia

B.Moghimi@yahoo.c
o.uk

Business buyer behavior refers to the buying behavior of the
organizations that buy goods and services for use in production
of other products and services that are sold, rented, or supplied to
others. Also included are retailing and wholesaling firms that
acquire goods to resell or rent to others for profit.

 Business buying process is the process where business buyers
determine which products and services are needed to purchase,
and then find, evaluate, and choose among alternative brands

B.Moghimi@yahoo.co.uk

 Compared with consumer purchases, a business purchase
usually involves more decision participants and a more
professional purchasing effort. Often, business buying is
done by trained purchasing agents who spend their
working lives learning how to buy better. The more
complex the purchase, the more likely it is that several
people will participate in the decision-making process.

 Buying committees composed of technical experts and top
management are common in the buying of major goods.


 Business buyers usually face more complex buying decisions
than do consumer buyers. Business purchases often involve
large sums of money, complex technical and economic
considerations, and interactions among many people at many
levels of the buyer’s organization also it takes longer to make
the decisions.
 The business buying process tends to be more formalized than
the consumer buying process.
 Large business purchases usually call for detailed product
specifications, written purchase orders, careful supplier
searches, and formal approval.
 Finally, in the business buying process, the buyer and seller
are often much more dependent on each other.


 It is the systematic development of networks of
supplier-partners to ensure an appropriate and
dependable supply of products and materials that
they will use in making their own products or resell


 Business buying decisions can range from routine to incredibly
complex, involving only a few or very many decision makers and
buying influences.

A Model of Business Buyer Behavior


Straight re-buy is a routine purchase decision such as
reorder without any modification

Modified re-buy is a purchase decision that requires
some research where the buyer wants to modify the
product specification, price, terms, or suppliers

New task is a purchase decision that requires thorough
research such as a new product

Systems selling involves the purchase of a packaged
solution from a single seller (solution selling)


Buying center is all of the individuals and units that play
a role in the business decision-making process

◦ Users
◦ Influencers
◦ Buyers
◦ Deciders
◦ Gatekeepers


 Users: Members of the buying organization who will actually
use the purchased product or service.
 Influencers: People in an organization’s buying center who
affect the buying decision; they often help define
specifications and also provide information for evaluating
alternatives.
 Buyers: People in an organization’s buying center who make
an actual purchase.
 Deciders: People in an organization’s buying center who have
formal or informal power to select or approve the final
suppliers.
 Gatekeepers: People in an organization’s buying center who
control the flow of information to others.


 Buying center: Cardinal Health deals with a wide range of buying influences,
from purchasing executives and hospital administrators to the surgeons who
actually use its products.


Economic Personal
Factors Factors

Price
Emotion
Service


Environmental Factors

Demand for Economic Cost of
product outlook money

Resource
Technology Culture
availability

Politics Competition


Organizational Factors

Objectives
Policies
Procedures
Structure
Systems


Interpersonal Factors

Influence Experience

Authority Dynamics


Individual Factors

Motives Perceptions Preferences

Age Income Education

Attitude
toward risk


It occurs when someone in the company
recognizes a problem or need

 Internal stimuli
◦ Need for new product or production equipment
 External stimuli
◦ Idea from a trade show or advertising


General need description describes the characteristics
and quantity of the needed item

Product specification describes the technical criteria

Value analysis is an approach to cost reduction where
components are studied to determine if they can be
redesigned, standardized, or made with less costly
methods of production


 Supplier search: The stage of the business buying process
in which the buyer tries to find the best vendors.

 Proposal solicitation: The stage of the business buying
process in which the buyer invites qualified suppliers to
submit proposals.

 Supplier selection: The stage of the business buying
process in which the buyer reviews proposals and selects a
supplier or suppliers.


Order-routine specifications is the final order with the
chosen supplier and lists all of the specifications and
terms of the purchase

 Performance review The stage of the business buying
process in which the buyer assesses the performance of
the supplier and decides to continue, modify, or drop
the arrangement.


 Purchasing through electronic connections between
buyers and sellers; usually online.


E-procurement strategies


 Advantages
◦ Access to new suppliers
◦ Lowers costs
◦ Speeds order processing and delivery
◦ Shares information
◦ Sales
◦ Service and support
 Disadvantages
◦ Can erode relationships as buyers search for new
suppliers
◦ Security


Consist of Schools, hospitals, nursing homes, and prisons
that provide goods and services to people in their care

Characteristics
• Low budgets
• “Captive” audience

General Mills Foodservice produces, packages, prices, and
markets its broad assortment of foods to better serve the
specific food service requirements of various institutional
markets.


 Governmental units—federal, state, and local—that purchase or
rent goods and services for carrying out the main functions of
government. It tends to favor domestic suppliers and require
suppliers to submit bids and normally award to the lowest bidder

 Carefully monitored
 Affected by similar environmental factors
 Good credit
 Non-economic factors
 Minority suppliers
 Depressed suppliers
 Small businesses


Marketing principles K&A chapter 6 MOGHIMI

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

En vedette

En vedette (20)

Similaire à Marketing principles K&A chapter 6 MOGHIMI

Similaire à Marketing principles K&A chapter 6 MOGHIMI (20)

Plus de Bahman Moghimi

Plus de Bahman Moghimi (20)

Dernier

Dernier (20)

Marketing principles K&A chapter 6 MOGHIMI