b2b marketing - session 3

7/30/2019 B2B Marketing - Session 3

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B2B Marketing

Prof. Rubina D’Mello



Organizational Buying and BuyerBehaviour



THE BUSINESS BUYING

PROCESS

More complex than the consumerdecision process.

Takes place within formal organization’sbudget, cost, and profit considerations.



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



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



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



Intricacies of the buying

decision process Individual roles

Interaction creates fluidity

Relationships and loyalty

Three kinds of needs



Forces influencing organisational

buying behaviour

OrganisationalBuying

behaviour

EnvironmentalForces

Organisationalforces

Group forces

Individual

Forces



Environmental forces Economic Influences

Tachnological influences



Organisational forces Goals, objectives and Strategies

Organizational positioning of purchasing

Centralization of purchasing

Centralization vs decentralization



Group forces Roles

Relative influence

Patterns of interaction of buyingdecision participants



Individual forces Job function

Past experience

Buying motives



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?



Members of the buying center assume different roles

throughout the procurement process.

Clues for

Identifying

PowerfulBuying

Center

Members

b2b marketing - session 3

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