Chapter 2 - BusinesstoBusinessMarketing Lecture2a...

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Lecture 2a Buyer Behaviour Business-to-Business Marketing
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Organizational buying Organizations are consisting of human beings, who make  decisions and engage in actions about purchasing Purchasing behaviour  of managers in customer  companies is influenced by various factors The successful vendor  understands these and tailors its  marketing activities accordingly Lecture 2a: Buyer behaviour
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Purchase decision-making factors I:  Nature  of our client’s business  (technology needs) Unit production technology : products tailored to  specific customers’ requirement Large scale, major capital investment Technological complexity Uniqueness of the final output Lecture 2a: Buyer behaviour e.g.: Siemens’ energy division leading international consortium  for new energy plants
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I:  Nature  of our client’s business  (technology needs) Mass / process production technology : products  are high-volume, standard quality (e.g. FMCG  or  first material  companies)  Low-cost and efficient production lines Stable and secure supply of first material New Product Development abilities Lecture 2a: Buyer behaviour e.g.: Tetrapak creating a new packaging for Italian olive oil  producer Arteoliva (foods, cars, furniture, appliances)
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II: Client’s business  strategy                                  (e.g. how it  positions itself against competitors) Product (quality) leader : constant innovation Excellent technological & creative abilities Experience and learning abilities Lecture 2a: Buyer behaviour e.g.: HP makes more than 50% of annual sales by at average  less-than-2-years-old products
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II: Client’s business  strategy                                      (e.g. how  it positions itself against competitors) Cost leader : reliable products at competitive prices Simplified processes of manufacturing Efficient use of resources Social responsibility : fair treatment of employees  or respect to the environment Lecture 2a: Buyer behaviour e.g.: EasyJet or Ryanair and their suppliers of ground services e.g.: UK toys manufacturer Woolworths requires suppliers to  guarantee fair treatment of their employees
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III: Client’s  purchasing orientation                             (e.g.  expected contribution of purchasing to business  performance) Buying orientation : best deal  (lower price) and  maximized power over suppliers Set low price and standard quality levels Consolidate volume of purchases Play suppliers off against each other  Lecture 2a: Buyer behaviour
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III: Client’s purchasing orientation                                         (e.g. 
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This note was uploaded on 05/12/2011 for the course MARKETING 222 taught by Professor Antonios during the Spring '11 term at Aarhus Universitet.

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Chapter 2 - BusinesstoBusinessMarketing Lecture2a...

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