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ANALYSING BUSINESS MARKETS
PART II
BUYING SITUATIONS
Business buyer faces many decisions in making a purchase
HOW MANY ?
Depends on the complexity of the problem being solved, newness of the buying requirement,number of
people and time required.
TYPES OF BUYING SITUATIONS
Straight
Rebuy
Purchaser
Supplier
• The purchasing department re-orders kn a routine basis and chooses from suppliers on an approved list.
• Product service and quality is maintained
• ‘Out-suppliers’ get a small order and then enlarge their purchase share over time.
Modified
Rebuy
Purchaser
Supplier
Purchaser Supplier
• Buyer wants to modify product specifications,
prices, delivery requirements or other terms.
• Involves additional participants on both sides
• In-supplies become nervous inorder to protect and
Ou-sippliers get an oppurtunity to gain some
business.
New
Task
• A purchaser buys a product or service for the first time.
• The greater the cost or risk,the larger the number of participants and the
greater their information gathering-and therefore the longer the time needed to
make a decision.
Purchaser???
Supplier
Marketing
implications of
buying
situations
Systems
Buying
and
selling
System buying
• Many business buyers prefer to buy a total
solution from one seller -> SYSTEM BUYING
• Originated with the government
•Consists of : 1) Prime contractors
2)Second-tier contractors
• In Systems Contracting, a single supplier
provides the buyer with its entire requirement of
MRO
Primary Contractor Second-tier Contractor
System selling
• Sellers recognizing that buyers like to purchase a
total solution,will adopt system selling as a marketing
tool.
• Key industrial marketing strategy in bidding to
large-scale industrial projects
• Customers present potentioal suppliers with a list of
project specifications and requirements
Key strategy for large-scale projects
Created by Aburvaa Ramesh, SVCE , during an internship By Prof. Sameer Mathur, IIM Lucknow.www.IIMInternship.com