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8/7/2019 5070 Chapter 7
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Chapter 7
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CISCO Targets Businesses
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W hat is Organizational Buying?Organizational buying refers to the decision-making process by which formal organizationsestablish the need for purchased products and
services, and identify, evaluate, and chooseamong alternative brands and suppliers.
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Characteristics of Business Marketsy Fewer, larger buyersy Close supplier-customer
relationshipsy Professional purchasingy Many buying influences
y Multiple sales callsy Derived demandy F luctuating demandy Inelastic demandy Geographically
concentrated buyersy Direct purchasing
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Buying Situation
S traight rebuy
Modified rebuy
New task
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Systems Buying and Selling
Turnkey solutiondesired;
bids solicited
Primecontractors
S econd-tiercontractors
S ystemsubcomponents
assembled
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The Buying Center
Copyright 2009 Pearson Education,
Inc. Publishing as Prentice Hall7-7
Initiators
Users
Influencers
Deciders
Approvers
Buyers
Gatekeepers
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Sales Strategies
S mall S ellers
Large S ellers
Key BuyingInfluencers
Multilevel
In-depthS elling
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Stages in the Buying Process:
Buyphasesy Problem recognitiony General need descriptiony Product specificationy S upplier searchy Proposal solicitationy S upplier selectiony
Order-routine specificationy Performance review
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Forms of Electronic Marketplaces
Catalog sitesV ertical markets
Pure play auction sites Spot markets
Private exchangesBarter markets
Buying alliances
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Methods of e-Procurementy W ebsites organized using vertical hubsy W ebsites organized using functional hubsy
Direct extranet links to major suppliersy Buying alliancesy Company buying sites
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H andling Price-Oriented Customers
Limit quantity purchased
Allow no refunds
Make no adjustments
Provide no services
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Methods for Researching
Customer Valuey Internal engineering
assessmenty F ield value-in-use
assessmenty Focus-group value
assessmenty Direct survey questions
y Conjoint analysisy Benchmarksy Compositional
approachy Importance ratings
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Order Routine SpecificationS tockless
purchase plans
V endor-managedinventory
Continuousreplenishment
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Establishing Corporate Trust
and Credibility
Expertise
Likeability T rustworthiness
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Trust DimensionsT ransparent
Product/ S erviceQuality
Incentive
Partnering
CooperatingDesign
ProductComparison
S upply Chain
Pervasive Advocacy
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Categories of Buyer-Seller
Relationshipsy Basic buying and sellingy Bare bonesy Contractual transactiony Customer supply
y Cooperative systemsy Collaborativey Mutually adaptivey Customer is king
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Aramark Successfully Services Institutional and
Government Markets