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8/20/2019 Lecture Week 3
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PARTICIPANTS IN THEBUYING PROCESS
week 3.3
8/20/2019 Lecture Week 3
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The Professional Buyer
Trained professional buyers typically carry out
buying in business-to-business markets:
– Purchasing agents
– Procurement officers
– Directors of materials management
Ne
w
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The Buying Center !"U
The group of people in an organization who participate in abuying decision
Rolls:
– Initiator
– User
– Influencer
– Decider
– Approver
– Buyer – atekeeper
! Who:
Purchase
Buyer Initiator
User
atekeeper
Influencer
Decider
Users orothers thatre"uestpurchase
user
techs
Approver Authori#e
proposedaction
$n prod re"uor supplier
%ormalauthority
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Roles of the !e#ision$"a%ing Unit
Initiator: starts the purchase
process &y recogni#ing a need
Users: their 'o&s re"uire that
they implement and evaluate
what was purchased Influencers& individuals who
affect the decision maker(s
final choice through
recommendations a&out which
vendors to include or which
products will &est meet needs
Decider ) people who decide
on product re"uirements
Approver / Decision maker:
person*committee that makes
the final decision
Buyer / Purchaser & any
person who actually &uys theproduct
Gatekeepers& controlinformation – +creens and filters
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Buying #entre in'uen#es
Several participants with dierent interests, authority,status or persuasiveness and dierent decisioncriteria:
ngineering wants to ma!imize performance of the
product "roduction wants ease of use # reliability supply
$inance wants focus on economics
"urchasing wants to control operating and
replacement cost
%nions may emphasize safety
&uyers also may have personal motivations,perceptions and preferences
KI!"uyers
#$ne%pert"uyers
Wantthe"est"uyers
Wantitalldone
"uyers
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Pur#hase (e#isions are )a(e *yin(i+i(uals,
'ndividuals are motivated by their own needs and
perceptions in attempting to ma!imise the rewards
(pay, advancement, recognition etc)
"ersonal needs motivate behaviour individual, but
organisational needs legitimate buying decisionprocess
"eople are not buying products: they buy solution totwo problems:
– $rganisation(s economic and strategic pro&lem
– Personal need for individual achievement * reward
Both rational and emotional decisions
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Buying #entre targeting
*+ ho are the decision makers
&+ hat decision do they inuence
.+ hat is their level of inuence
/+ hat evaluation criteria do they use
. !ample disposible surgical gowns:. ad *: 0" "urchasing, operating room administrator,
surgeons
. ad &: 0" decides on disposible vs reusable gowns, admin
chooses a supplier
. ad .: administrator looks into absorbency, 1uality, cost
etc
. ad /: Surgeons inuence retroactively on satisfaction
chosen brand
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Buying #entre targeting -
Small sellers concentrate on key buying inuencers
2arge sellers go for multi-level in-depth selling
*ccount management
.ommunication
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Ne.t wee%&
*ssignment 3 by groups 4,3,5
ith your fellow group members you discuss to
select a company which is participating in the
brewery industry from your country+
/escribe the dierences between business-to-business and consumer marketing for the following
market elements: products, buyer behavior,
decision making, market structure, channels and
promotion+
/escribe the dierences between derived demand
and consumer demand+ 6ow does the leveraging
phenomenon occur7
hat is the dierence between value as perceived
by the customer and value as perceived by thesupplier+