Description
Organization buying behaviour with respect to B2B marketing.
Organizational buying behavior
Mainly related to B2B Marketing
Organizational buying behavior
? ? ? ? ? ?
Consumer buying is different than the Organizational buying behavior Buying situations in B2B Stages Roles Influences on organizational behavior Buying centres
Consumer vs. Organizational BB
?
?
Consumers decisions – simple/affects limited people Organizational buying complex/affects entire organisation
? ?
Processes - complicated, Phases/stages/steps
Consumer vs. Organizational BB
? ?
Different behavior for different products/target groups Simple products
?
Food/beverages - bought quickly as influenced by advertising and presentation Expensive items, computers) – behavior is getting more rational Comparative. Investment goods – bargaining
?
Premium goods
? ? ?
B2B products – organizational procurement starts
? ?
?
More than one decider Process of buying here has certain set of rules/norms etc. Pricing is important
?
Copper, Gold, Chemicals, Heavy industry materisl
? ? ?
Comparison Standardisation Tenders
B2B systems
? ? ? ?
More capabilities/capacities. Inventory systems (FIFO/LIFO) Cost involved. The GOODWILL involved with buyer & seller is on high consequence grounds.
B2B facilities
Mainly BULK purchases ? Industrial ? Manufacturing ? Office ? Commercial plans ? Future plans etc
Organizational buying situations
Main types of buying situations in B2B
?
Straigtht rebuy –
? ?
Routine, Repetitive process
?
Telephone, Housekeeping, Official vehicle, fuel, office supplies
?
?
Component suppliers for various industries...mainly the automotive industry Nothing new in information
Main types of buying situations in B2B
?
Modified rebuy –
? ? ?
Little complicated Yet less sophisticated: Mainly Computers, electronics, cars, trucks, consulting
?
?
Modified rebuys are often re-looking in the existing processes Adapting towards slight changes.
Main types of buying situations in B2B
?
New task –
?
A thorough research
?
New plant
? High uncertainty.
?
Extremly strategic & financial involvement
? ?
Equipments of various kind, Infrastructure
? ?
Re-evaluation of alternatives Search - new information & alternatives.
Buying phases
1. 2. 3. 4. 5. 6. 7. 8.
Problem recognition General need description Product specification Supplier search Proposal solicitation Supplier selection Order routine specification Performance review
Stages of decision in B2B procurement
?
A widely used model to distinguish between 5 phases of procurement
? ? ? ? ?
Preliminary application (initiation phase) Tender proposal Negotiation Processing of order Warranty and services
Preliminary application
?
Recognition of a problem-What‘s the need?
?
Normally with a suggested solution
? ?
Involvement of top management Call for quotes/offers from a number of potential suppliers
Tender preparation phase
?
Define characteristics
?
Of quantity/quality/expected pricing for the needed item/s.
Search-All details of potential suppliers. ? Supplier‘s willinness & quotes. ? Incomparable with his competitors ? Customer tries to make the offer best comparable
?
Negotiation phase
?
The main selling process
?
The main model.
? ?
Acquisition/analysis of all suppliers Re-evaluate proposals and selection of suppliers.
?
Final supply/ sample for experimenting.
Processing phase
? ?
Contains selection of an order routine Realisation of the transaction.
Roles in B2B procurement – buying center concept
? ?
Group of people involved – buying center Different roles – not institutionalised
Buying center
?
Role keepers have different tasks – not mandatory Buyer User Initiator Gatekeeper Influencer
? ? ? ? ?
Buyer
? ? ? ? ?
Formal authority to sign contracts Member of purchasing department Influences the vendor selection Not in technical details Main criteria: price + terms and conditions of the contract
User
? ?
?
Person working with the product Interested in benefits and unobstructed function of the product to buy Large knowhow and preconceived opinion
Influencer
?
A person with high technical knowledge and practical experience ? definition of minimum requirements on technical or company standards
Gatekeeper
?
? ?
Controls the flow of information within the buying center Assistant of decision maker Influence by preparing the decision and the relevant documents
Decider
? ?
Right to say yes or no Mightiest person
Initiator
?
Person who brings new ideas and solutions into the company
Specific marketing considerations in the industrial facilities business
? ? ? ?
Long decision taking process High risk Complex buying center The specific competitive situation
Product policy
? ?
?
Focuses on innovation Has to care for high flexibility in research and development And manufacturing and assembling
Price
? ? ?
?
Strict bid and tender rules High transparency Add value with service offering to achieve a differentiating position Another aspect: financing and sourcing models
Distribution policy
? ?
?
Focus on negotiation phase Provide excellent people in the selling center High technical knowledge
Communication
? ? ?
Problem solver! Proving success with comparable tasks Reference projects!
doc_665685678.ppt
Organization buying behaviour with respect to B2B marketing.
Organizational buying behavior
Mainly related to B2B Marketing
Organizational buying behavior
? ? ? ? ? ?
Consumer buying is different than the Organizational buying behavior Buying situations in B2B Stages Roles Influences on organizational behavior Buying centres
Consumer vs. Organizational BB
?
?
Consumers decisions – simple/affects limited people Organizational buying complex/affects entire organisation
? ?
Processes - complicated, Phases/stages/steps
Consumer vs. Organizational BB
? ?
Different behavior for different products/target groups Simple products
?
Food/beverages - bought quickly as influenced by advertising and presentation Expensive items, computers) – behavior is getting more rational Comparative. Investment goods – bargaining
?
Premium goods
? ? ?
B2B products – organizational procurement starts
? ?
?
More than one decider Process of buying here has certain set of rules/norms etc. Pricing is important
?
Copper, Gold, Chemicals, Heavy industry materisl
? ? ?
Comparison Standardisation Tenders
B2B systems
? ? ? ?
More capabilities/capacities. Inventory systems (FIFO/LIFO) Cost involved. The GOODWILL involved with buyer & seller is on high consequence grounds.
B2B facilities
Mainly BULK purchases ? Industrial ? Manufacturing ? Office ? Commercial plans ? Future plans etc
Organizational buying situations
Main types of buying situations in B2B
?
Straigtht rebuy –
? ?
Routine, Repetitive process
?
Telephone, Housekeeping, Official vehicle, fuel, office supplies
?
?
Component suppliers for various industries...mainly the automotive industry Nothing new in information
Main types of buying situations in B2B
?
Modified rebuy –
? ? ?
Little complicated Yet less sophisticated: Mainly Computers, electronics, cars, trucks, consulting
?
?
Modified rebuys are often re-looking in the existing processes Adapting towards slight changes.
Main types of buying situations in B2B
?
New task –
?
A thorough research
?
New plant
? High uncertainty.
?
Extremly strategic & financial involvement
? ?
Equipments of various kind, Infrastructure
? ?
Re-evaluation of alternatives Search - new information & alternatives.
Buying phases
1. 2. 3. 4. 5. 6. 7. 8.
Problem recognition General need description Product specification Supplier search Proposal solicitation Supplier selection Order routine specification Performance review
Stages of decision in B2B procurement
?
A widely used model to distinguish between 5 phases of procurement
? ? ? ? ?
Preliminary application (initiation phase) Tender proposal Negotiation Processing of order Warranty and services
Preliminary application
?
Recognition of a problem-What‘s the need?
?
Normally with a suggested solution
? ?
Involvement of top management Call for quotes/offers from a number of potential suppliers
Tender preparation phase
?
Define characteristics
?
Of quantity/quality/expected pricing for the needed item/s.
Search-All details of potential suppliers. ? Supplier‘s willinness & quotes. ? Incomparable with his competitors ? Customer tries to make the offer best comparable
?
Negotiation phase
?
The main selling process
?
The main model.
? ?
Acquisition/analysis of all suppliers Re-evaluate proposals and selection of suppliers.
?
Final supply/ sample for experimenting.
Processing phase
? ?
Contains selection of an order routine Realisation of the transaction.
Roles in B2B procurement – buying center concept
? ?
Group of people involved – buying center Different roles – not institutionalised
Buying center
?
Role keepers have different tasks – not mandatory Buyer User Initiator Gatekeeper Influencer
? ? ? ? ?
Buyer
? ? ? ? ?
Formal authority to sign contracts Member of purchasing department Influences the vendor selection Not in technical details Main criteria: price + terms and conditions of the contract
User
? ?
?
Person working with the product Interested in benefits and unobstructed function of the product to buy Large knowhow and preconceived opinion
Influencer
?
A person with high technical knowledge and practical experience ? definition of minimum requirements on technical or company standards
Gatekeeper
?
? ?
Controls the flow of information within the buying center Assistant of decision maker Influence by preparing the decision and the relevant documents
Decider
? ?
Right to say yes or no Mightiest person
Initiator
?
Person who brings new ideas and solutions into the company
Specific marketing considerations in the industrial facilities business
? ? ? ?
Long decision taking process High risk Complex buying center The specific competitive situation
Product policy
? ?
?
Focuses on innovation Has to care for high flexibility in research and development And manufacturing and assembling
Price
? ? ?
?
Strict bid and tender rules High transparency Add value with service offering to achieve a differentiating position Another aspect: financing and sourcing models
Distribution policy
? ?
?
Focus on negotiation phase Provide excellent people in the selling center High technical knowledge
Communication
? ? ?
Problem solver! Proving success with comparable tasks Reference projects!
doc_665685678.ppt