Marketing Management Marketing Buying Behavior Basic Concepts

1. School of
ANALYZING BUSINESS Business
Management
MARKETS Shoolini
University
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2. Business organizations do not only sell; they also buy
vast quantities of raw materials, manufactured
components, plant and equipment, supplies, and
business services.
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3. ORGANIZATIONAL BUYING?
Decision-making process
by which formal
organizations establish
the need for purchased
products and services
and identify, evaluate,
and choose among
alternative brands and
suppliers.
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4. BUSINESS MARKET VERSUS THE CONSUMER
MARKET
 The business market consists  Consumer behaviour is the
of all the organizations that study of how
acquire goods and ser vices individuals, groups, and
used in the production of organizations
other products or ser vices that select, buy, use, and dispose
are sold, rented, or supplied of goods, ser vices, ideas, or
to other s experiences to satisfy their
needs and wants
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5. CHARACTERISTICS OF BUSINESS BUYERS
 Fewer, larger buyers
 Close supplier-customer
relationship
 Professional purchasing.
 Several buying influences.
 Multiple sales calls
 Geographically
concentrated buyers
 Direct purchasing.
 Derived Demand
 Inelastic demand.
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6. BUYING SITUATIONS
 Straight Rebuy
 Modified Rebuy
 New Task
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7. SYSTEMS BUYING AND SELLING
 systems contracting,
where a single
supplier provides the
buyer with his or her
entire requirement
of MRO
(maintenance,
repair, operating)
supplies. During the
contract period, the
supplier manages
the customer's
inventory.
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8. PARTICIPANTS IN THE BUSINESS BUYING
PROCESS
All members of the organization who play any of seven roles
in the purchase decision process
Gatekeeper
(purchasing
Buyer agents,
receptionists
Approver , and
telephone
Decider operators )
Influencer
User
Initiator
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9. T YPES OF BUSINESS CUSTOMERS
Solution-oriented
customers
Price-oriented (consultative selling).
customers They want low prices
(transactional but will respond to
selling). Price is arguments about
everything. lower total cost or
more dependable
supply or service.
Gold-standard
customers (quality Strategic-value
selling). They want customers (enterprise
the best performance selling). They want a
in terms of product fairly permanent sole-
quality, assistance, re supplier relationship
liable delivery, and so with your company
on.
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10. PURCHASING ORIENTATIONS
Buying Orientation. The purchaser's focus is short term and tactical. Buyers are
rewarded on their ability to obtain the lowest price from suppliers for the given level of
quality and availability
Procurement Orientation. Here buyers simultaneously seek quality improvements and
cost reductions. Buyers develop collaborative relationships with major suppliers and
seek savings through better management of acquisition
Supply Chain Management Orientation. Here purchasing's role is further broadened to
become a more strategic, value-adding operation. Purchasing executives at the firm
work with marketing and other company executives to build a seamless supply chain
management system from the purchase of raw materials to the on-time arrival of
finished goods to the end users.
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11. T YPES OF PURCHASING PROCESSES
Leverage
products.
These Strategic
Routine Bottleneck
products products.
products. products.
have high These
These These
value and products
products products
cost to the have high
have low have low
customer value and
value and value and
but involve cost to the
cost to the cost to the
little risk of customer
customer customer
supply and also
and involve but they
(e.g., engine involve high
little risk involve some
pistons) risk (e.g.,
(e.g., office risk (e.g.,
because mainframe
supplies). spare parts).
many computers).
companies
make them.
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12. MAJOR INFLUENCES ON BUSINESS BUYERS
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13. RULES OF SOCIAL & BUSINESS ETIQUETTES THAT
MARKETERS SHOULD UNDERSTAND
France: if you do not speak french, apologize for your lack of knowledge.
The french are quite proud of their language and believe that everyone
should feel privileged to speak it.
Germany: Germans are sticklers for titles. Try to introduce people using
their full, correct title, no matter how long it is.
Japan: Most Japanese businesspeople know what will be discussed at a
meeting, how everyone feels about it, and how it will affect their business
before they even get there
Korea: Korean do not like foreigners to assume that their culture is the
same as Japan
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14. THE PURCHASING/PROCUREMENT PROCESS
Performance
review
Order routine
specification
Supplier
selection
Proposal
solicitations
Supplier
search
General
needs
Problem description
recognition and product
specification
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15. SCHOOL OF
BUSINESS
MANAGEM E NT
Shoolini
University
Questions
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