consumer buyng vs ind buying
TRANSCRIPT
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Business vs. ConsumerBusiness vs. Consumer
MarketsMarketsBusiness vs. ConsumerBusiness vs. Consumer
MarketsMarkets
Fewer buyersFewer buyers Larger buyersLarger buyersClose supplier-customer relationshipClose supplier-customer relationshipGeographically concentratedGeographically concentratedDerived demandDerived demand Inelastic demandInelastic demand Fluctuating demandFluctuating demand
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Business vs. ConsumerBusiness vs. Consumer
MarketsMarketsBusiness vs. ConsumerBusiness vs. Consumer
MarketsMarkets
Professional purchasingProfessional purchasingSeveral buying influencesSeveral buying influencesMultiple sales callsMultiple sales callsDirect purchasingDirect purchasingReciprocityReciprocity LeasingLeasing
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Industrial customers
Commercial organizationsNon commercial
organizations
Publicsector
enterprises
Processing enterprises, Ind/consumer goods reseller,service
enterprises
Large , medium, small & tiny units
Privatesector
enterprises
Co-operative
enterprises
Joint
ventures
Government
organizationsCooperatives
Voluntary
organizations
Industrial Marketing
Public
Sector
Pvt.
Sector
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I
nvolvedD e
cisi o
nMaking
I
nvolvedD e
cisi o
nMaking
Modified RebuyModified Rebuy
Modified RebuyModified Rebuy
New Task BuyingNew Task Buying
New Task BuyingNew Task Buying
Straight RebuyStraight Rebuy
Straight RebuyStraight Rebuy
Utilities
Office Supplies
Bulk chemicals
New vehicles
Elec. EquipConsultants
Computer equip.
Custom furniture
Installed components
Buildings
Weapon systems
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Types of Industrial Buying
Types of Industrial Buying
New
Task
New
Task
A buying situation that has not been previously
faced by the organization.Significantly steep learning curve, organization
seeks many sources of information.
Modified
Rebuy
Modified
Rebuy
Straight
Rebuy
Straight
Rebuy
A routine buying situation with established solutions.Abbreviated steps in the process, fewer people in
the buying center, less time to completion.
A buying situation that is somewhat similar to past
problems/solutionsExamines alternatives within a limited scope,
involves fewer people than a new task situation
and more than a straight rebuy.
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Participants in the BusinessParticipants in the Business
Buying ProcessBuying ProcessParticipants in the BusinessParticipants in the Business
Buying ProcessBuying Process
Gatekeepers
Initiators
Buyers
Influencers
Deciders
Users
Approvers
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Problem RecognitionProblem Recognition
General Need DescriptionGeneral Need Description
Product SpecificationProduct Specification
Supplier SearchSupplier Search
Proposal SolicitationProposal Solicitation
Supplier SelectionSupplier Selection
Order Routine SpecificationOrder Routine Specification
Performance ReviewPerformance ReviewPostPost
PurchasePurchase
PurchasePurchase
InfoInfo
Search/Search/
EvalEval
NeedNeed
RecognitionRecognition
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Stage 1: Anticipate a Problem/Need/Opportunity and aGeneral Solution
Example: Need to provide employees with a good cup of coffee to
enhance productivity.
Stage 2: Determine the Characteristics and Quantity of aNeeded Good or Service
Example: Offering a coffee system that brews one cup of coffee at atime according to each employees preference.
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Stage 3: Describe Characteristics and the Quantity of aNeeded Good or Service
Example: Firms need a simple system for brewing a
good cup of coffee; quantity requirements are easilycorrelated to the number of coffee drinkers.
Stage 4: Search for and Qualify Potential Sources
Choice of supplier may be fairly straightforward or very
complex.Stage 5: Acquire and Analyze Proposals
May involve competitive bidding, especially if thebuyer is the government or a public agency.
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Stage 6: Evaluate Proposals and Select Suppliers
Buyers choose proposal best suited to their needs.
Final choice may involve trade-offs between featuresuch as price, reliability, quality, and order accuracy.
Stage 7: Select an Order Routine
Buyer and vendor work out best way to process future purchases.
Stage 8: Obtain Feedback and Evaluate Performance
Buyers measure vendors performance.
Larger firms are more likely to use formal evaluation procedures.
Some firms rely on outside organizations to gather quality feedback
and summarize results.