org. buying beh.pptx - Consumer ys Organizational buying...

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Unformatted text preview: Consumer ys. Organizational buying behavior 13' ID ID Decisions made by consumers are quite simple Organizational buying processes are more complicated! there are seyeral phases and steps Different buying behayior for different products and target groups 5 "pp o c-zgrb'5._i-':1o- goods like food and beyerages are bought yery spontaneously — influenced by adyertising and product presentation For premium consumer goods {espensiye clothes. computers} — buying behayior is getting more rational - comparison Priyate inyestment goods - price bargaining '-.-13g. my: lie-.1“ 828 products — organizational procurement starts o More than one person involved o Buying process follows certain rules o Price comparison, standardisation, tenders : Ausschreibungen} 'fi 828 systems c invclve mcre capabilities and greater wcrklcads c Frcrn the buyer‘s and the supplier‘s side decisicn has mcre extensive ccnsequences 'fi 828 facilities a Industrial plants c: Manufacturing installatinns 0 Office buildings i *9 Buying phases 0 F’rcblem reccgnitien 0 General need descripticn e Prcduct specification e Supplier search e Prcpcsal sclicitaticn e Supplier selecticn :3 Order rcutine specificatien e Perfcrmance review 3 ".-'|.'I-._'i. ".-'|.'I" .'I i:.-'!.-'.' Stages of decision in B2B procurement c Backhaus deyeleped a widely usable rnedel te distinguish between 5 phases at precurernent e Preliminary applicatien (initiatien phase) c Tender prepesal c Negetiatien e Precessing ef erder e Warranty and services o a Preliminary application :3 Reedgnitidn at a prdblem (need) and a general selutien e Released by tep management 2 aperating department er external consultants :3 Result 9 request fer an after addressed ta a number at patential suppliers 1 I] 51.19.. “:13“ .1 i=a.-'.- Tender preparation phase e Determinatien ef Characteristics and quantity ef needed iterne e Search fer and qualifieatien ef petential eeureee e Supplier has he previde an effer e Triee he be ineernparable with his eernpetitere e Cueterner tries te rnake the effer beet eernparable 1 1 5139.. “:11“ .1 Fee.- t it Negotiation phase :3 2 sure selling presess e Cemprises asquisitien and analysis sf prspesals, evaluatisn sf prepesals and selectien ef suppliers 1 2 51.19.. “:13“ .1 i=s.-'.- 'fi Processing phase/warranty/ service phase :3 Ccntaihs selectien cf an erder rcutine e Realisetieh cf the transactien aleng with the fixaticn cf after sales service tasks 1 3 51.19.. “:13“ .1 i=a.-'.- 'fi Roles in B2B procurement — buying center concept o Group of people involved in the buying process — buying center o Websteri’Wind model shows 5 different roles — not institutionalised o This causes probleme in identifying and targeting the right people within the deoision process 14 '- * Buying center :3 Rule keepers have different tasks — net mandatery :3 Buyer e User 0 Initiater e Gatekeeper e Influeneer 1 5 51.19.. “:13“ .1 i=a.-'.- 0* Buyer e Fermal autherity te Sign centracte c Member at purchasing department 0 Influences the vendcr aelecticn :3 Net in technical details 0 Main criteria: price + terms and cenditicne cf the centract 1 E 51.19.. “:13“ .1 i=a.-'.- i * User :3 Person werking with the preduet e Interested in benefits and unebetructed functien ef the preduet te buy :3 Large knewhew and precenceived epinien Influencer c A perecn with high technical kncwledge and practical experience 9 definiticn at minimum requirements cn technical cr camp-any standards 1 E 51.19.. “:13“ .1 i=a.-'.- Gatekeeper e Gentrels the flaw ef infermatien within the buying center e Assistant ef decisien maker :3 Influence by preparing the decisien and the relevant deeuments (Scriptum p 3334 + summary) 1 g 51.19.. “:13“ .1 i=a.-'.- Decider a Right tn say yes Dr nn :1 Mightiest persnn 2|] 5139.. “:11“ .1 i=a.-'.- Initiator e Pereen whe brings new ideas and eelutiene inte the cempeny 21 51.19.. “:13“ .1 i=a.-'.- Specific marketing considerations in the industrial facilities business o Long decision taking process o High risk o Complex buying center o The specific competitive situation 22 stag. “:11“ .1 i=a.-'.- 0 it Product policy :3 Fccuses cn inncvaticn c Has tc care fer high flexibility in research and develepment D And manufacturing and assembling 23 51.19.. “:13“ .1 i=a.-'.- Price e Strict bid and tender rules e High transparency 0 Add value with service cffering tc achieve a differentiating pcsitien e Anether aspect: financing and scurcing mcdels 24 5139. v1.1“ .1 i=a.-'.- Communication e Preblem selver! e Preving success with cemparsble tasks :3 Reference prejects! 25 51.19.. “:13“ .1 i=s.-'.- 4! Deciders: These individuals have formal or informal authority to select the final supplier. May be the same as Buyers in routine pcrchases. 4* Eatekeepens: These individuals hffl'mdy or 1’o:rr1'l.al:,.I control the flow' of information or access to other groups involved in the buying process. The differences between orga'izatioral End incividuEl buying processes are shown in the following table: I Eu?— 5 gig Farrah“:- fi'fifi'hu: I consul-nor ] ! Problerrr Anticipate-s and plans for purcl'Ese on Reacts to ne I I an ll 3' . e !_rflrtion irocrtine basis : Ger-era need I Extensive, ohiective cost-benefit Li'nited analysis of benefits; concern ' LEEPED" a! iall‘ii.¥.— __‘lflflE'I-ELDEEL i Product Precise tecl’nioal descriotion using I . _ _ '__=aPB-Bif-E31Ifl-1_ tamflqtflswchafi _EE_-_|_LI_B..-=-!LE.IlJ-§i§ _ mammm '3 '1 tan“: ”f “fits i Infon'mationi' Extensive search that extends to the Linited search — geogaolicaly a'lcl i1 ' I_5'upplier search _search for sLIJplier _ terms of socl'ces Proposal Fennel, such as "l1 a tender process it' I ' soicilation Iqflflurnes o_r values invol'uE-d I “a? he I” I _ EIuying_-5tep I_Elusi1ess to Business ___I Conscmer _ _ . Limits-e analysis wi1h subjective and Supplier I'u'lade after extensrve evaluation of a I ts! i n n'nat' h“ cing 1he selection obIIectru'e Information _ _ _ _ decision - Grder—rmti'le Routine calc-Llation of re-order poi'lts N t t'n I specification as wel as tine and place of deivfl D ro-u e I Post-le'cl'tase I Extensive cornpaison made and = performance feecIJacl-a: given, concern with c|nl_lslit'_lluI Little basis for cornpa'i I review ma'la ment at source _ _ Three Bugging Elma-thus: 1 . New task 2. l'u'locified rent—13' 3. Straight rebin Newt-eel: In tlis situation, the buyer is buying the product for the first fine. As the cost of the product or conscrnption vslue become-s higher, more nurrtier of execufives are i1volved in the process. The stages of awa'eness. interest. evaluation. trial. and adoption wil be there for 1he products of each potential quJplier. Grly the products I|.Il.rl'icl'l pass all the stages In.II.riII be on the approved list and price corrpetition wil follow sch-sequenfly. '- When 1he problem or need is totally different from previous experiences. -- Significant a'nount ofinforrnation is rec'jrecl. '- Eluyers operate i1 1he extensive probflern solv'ng stage. 3-! Buyers lacll: well defined criteria. ”Iv Lacl: strong predispositions toward a solution. III-odif-lecl ”buy- ...
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