dmu & dmp
DESCRIPTION
Some things to think about when you are targeted messages to the Decision Making UnitTRANSCRIPT
The Purchasing Decision
The Purchasing Decision Unit (DMU) The Purchasing Decision Process (DMP)
Learning Objectives of this Session
• The Decision Making Unit (DMU)
• The Decision Making Process (DMP)
• Factors affecting the Purchasing Decision
• B2C and B2B Purchasing Decisions
1: The Decision Making Unit (DMU) Model
The elements of the DMU are:
The Gatekeeper
The Initiator
The Decider
The Buyer
The User
The Financier
Other Influencers
The Gatekeeper
• Controls access to the DMU
• Controls information input into DMU
• Could be an individual (Secretary / PA)
• Could be a department (Customer Service, Sales, Procurement)
The Gatekeeper
Concerns:
“You better have a good reason for disturbing my boss.”
“Let me prove what a good member of the team I am.”
The Initiator
• The person who recognises a problem / need to be addressed
• May or may not be part of ‘formal’ DMU
• Often associated with ‘The User’
The Initiator
Concerns:
“I’ve got a problem – Help me!”
“Make my job easier!”
The Decider
• The person with the authority to make the decision to buy
• May or may not be the person who makes the final choice
• Level of seniority depends on importance of purchase / budget / company culture
The Decider
Concerns:
“Why should I risk my job or reputation on you?”
“If this thing works, how will I get the credit?”
The Buyer
• The person tasked to make the actual purchase
• Degree of choice / power depends on organisation structure
• May be part of a formal ‘Buying Department’
The Buyer
Concerns:
“Don’t give me more problems – or any more work – than I have already.”
The User
• The person/s who actually use or consume the product / service
• Degree of influence on DMU depends on company culture
• Importance of feedback / satisfaction depends on company culture
The User
Concerns:
“I just want this to work – first time, every time.”
“I want this to do just what it said on the tin.”
The Financier
• The person or department which authorises expenditure
• Degree of influence / authority depends on company culture / budget involved
The Financier
Concerns:
“How much?”
“What R.O.I can I expect?”
Influencers
Anyone outside of the DMU which has an influence on its members:
• Formal ‘consultants’• Informal personal
contacts / WoM• Recognised ‘experts’,
role models, personalities and endorsees
Influencers
Concerns:
“If I’m going to be your advocate, don’t make a liar out of me.”
The Decision Making Unit:B2B B2C
• Roles tend to be more formal
• Roles tend to be by job title – but some multi-role play
• Degree of influence may still be affected by strength of personality
• Roles tend to be more informal
• Many roles played by one person
• DMU sometimes associated with members of Family
• Recognises influence of children / non wage earners
2: The Decision Making Process (DMP) Model
The stages of the DMP are:
Recognition of need
Developing product specification
Search for information / supplier
Evaluation of alternatives
Select product / supplier
Decision to buy / Determining terms of contract
Fulfilment of contract
Evaluation
1: Recognition of need
• Many purchases are made to meet a perceived problem
• Customers are interested in ‘benefits’ (solutions) rather than ‘features’
• Problems may be ‘real’ or ‘imagined’• High priority vs. low priority problem solving• New technology may create its own ‘need’
e.g. Walkman, GPS, iPhone
2: Product specification
• May be complex formal B2B process
• Also B2C – especially for major purchases
• Budget
3: Search for information
• Previous purchasing experience• Intensity of search depends on: New Buy / Re-
Buy / Modified Re-buy (Extended, Limited and Routine Problem Solving)
• Advertising and sales literature• Internet• Sales representatives• Store visits• Recommendation from friends and other users
4: Evaluating alternatives
Factors compared:
• Performance (Capable of meeting need)
• Availability
• Price
• Value for money
• Brand?
5: Selection of product / supplier
• Shortlisting
• Request for tenders
• Prioritising choices
6: Decision to buy / Terms of contract
• To buy or not to buy
• Buy now or buy later (re-evaluation of priorities)
• Negotiating terms– Price / Payment– ‘Added value’ benefits
7: Fulfilment of contract
• Delivery
• Fitting
• Schedules
• Specifications
8: Evaluation
Has need been met?Problem areas:• Was product / service misrepresented?• Were specifications correctly determined?• Were expectations raised unrealistically?
(overselling)• Customer ‘satisfaction’ or ‘delight’?• Post-purchase dissonance?• Repeat purchase?
Conclusions:
• Need to identify customers’ decision making processes
• Need to identify members of DMU and their relative influence on the DMP
• What are the customers’ buying criteria• Need to understand buyer behaviour at each
stage of the DMP• Need to adapt customer communications for
each of the above