PS_Ch03 - Buying Behavior Mike Serkedakis...

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Unformatted text preview: Buying Behavior Mike Serkedakis McGraw­Hill/Irwin 4-1 “A supplier who does a great job at our France location can use the reputation if trying to earn business in Iowa.” ~Marvin Wagner Engineering Manager McGraw­Hill/Irwin 4-2 Types of Customers • Producers – Products included in manufacturing – Services to support the manufacturing operation Capital equipment items are major purchases such as mainframe computers and machine tools. • OEM purchasers – Goods to use in making their products • End users – Goods and services to support their own production and operations McGraw­Hill/Irwin 4-3 Maintenance, repair, and operating (MRO) supplies include paper towels and replacement parts for machinery. Types of Customers (continued) • Resellers – Finished products or services with the intention to resell them. Turnover** is how quickly an item sells, and how much effort it takes to sell. Profit margin** is how much a reseller makes on each sale. ** Great questions to ask during SPIN You need to SPIN about their customers!!!!!!! McGraw­Hill/Irwin 4-4 Types of Customers (continued) • Government agencies – Goods and services valued at more than $1 trillion annually • Institutions – Different needs and buying processes • Consumers – Products and services for use by themselves or by their families McGraw­Hill/Irwin 4-5 Organizational Buying and Selling • Complexity of the organizational buying process – – – – Purchasing agents Evaluations and negotiations Complexity is increasing More time required • Derived versus direct demand – Based on demand for other products and services sold by the customer – Sales people need to know Customer’s customers McGraw­Hill/Irwin 4-6 Is Buying Complex? Describe how you went about purchasing a car. Describe what you did the last time you bought a Describe soft drink. soft What were the differences? 4-7 Steps in the Buying Process 1: Recognition of a need. 2: Definition of the 2: product-type needed. product-type 4: Search for qualified 4: suppliers. suppliers. 8: Evaluation of product 8: performance. performance. 7: Place and receive the 7: orders. orders. 3: Development of 3: detailed specifications. detailed 6: Evaluation of 6: proposals, selection of a supplier. supplier. 5: Acquisition and 5: analysis of proposals. analysis Starts when someone realizes that a problem Starts exists. exists. Employees in the customer’s firm or outside Employees salespeople can trigger this recognition. salespeople 4-8 How do Organizations Make Buying Decisions? • Steps in the buying process • Choices to attend a university related to the 8 steps in the organizational buying process • Creeping commitment – “when decisions early in process significantly influence decisions later in process – Narrowing range of alternatives – Critical that salespeople be involved in the initial steps McGraw­Hill/Irwin 4-9 Steps in the Buying Process 1: Recognition of a need. 2: Definition of the 2: product-type needed. product-type 4: Search for qualified 4: suppliers. suppliers. 8: Evaluation of product 8: performance. performance. 7: Place and receive the 7: orders. orders. 3: Development of 3: detailed specifications. detailed 6: Evaluation of 6: proposals, selection of a supplier. supplier. 5: Acquisition and 5: analysis of proposals. analysis Starts when someone realizes that a problem Starts exists. exists. Employees in the customer’s firm or outside Employees salespeople can trigger this recognition. salespeople 4-10 Steps in the Buying Process 1: Recognition of a need. 2: Definition of the product-type needed. 4: Search for qualified 4: suppliers. suppliers. 8: Evaluation of product 8: performance. performance. 7: Place and receive the 7: orders. orders. 3: Development of 3: detailed specifications. detailed 6: Evaluation of 6: proposals, selection of a supplier. supplier. 5: Acquisition and 5: analysis of proposals. analysis After identifying a problem, organization members After develop a general approach to solving it. develop Firms often look to a salesperson to help in Firms analyzing the situation and considering solutions. analyzing 4-11 Steps in the Buying Process 1: Recognition of a need. 2: Definition of the 2: product-type needed. product-type 4: Search for qualified 4: suppliers. suppliers. 8: Evaluation of product 8: performance. performance. 7: Place and receive the 7: orders. orders. 3: Development of detailed specifications. 6: Evaluation of 6: proposals, selection of a supplier. supplier. 5: Acquisition and 5: analysis of proposals. analysis The specifications for the product needed to solve The the problem are prepared. the Potential suppliers use these specifications to Potential develop proposals. develop 4-12 Steps in the Buying Process 1: Recognition of a need. 2: Definition of the 2: product-type needed. product-type 4: Search for qualified suppliers. 8: Evaluation of product 8: performance. performance. 7: Place and receive the 7: orders. orders. 3: Development of 3: detailed specifications. detailed 6: Evaluation of 6: proposals, selection of a supplier. supplier. 5: Acquisition and 5: analysis of proposals. analysis The customer now looks for potential suppliers. The customer may contact previous suppliers or The go through an extensive search process. go 4-13 Steps in the Buying Process 1: Recognition of a need. 2: Definition of the 2: product-type needed. product-type 4: Search for qualified 4: suppliers. suppliers. 8: Evaluation of product 8: performance. performance. 7: Place and receive the 7: orders. orders. 3: Development of 3: detailed specifications. detailed 6: Evaluation of 6: proposals, selection of a supplier. supplier. 5: Acquisition and analysis of proposals. Qualified suppliers are asked to submit proposals. Salespeople work with people in their own Salespeople company to develop the proposal. company 4-14 ...
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This note was uploaded on 01/19/2012 for the course MKTG 4410 taught by Professor Michaelserkedakis during the Spring '12 term at Kennesaw.

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