Culture customs can strongly influence business buyer reactions to marketers

Culture customs can strongly influence business buyer

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Culture & customs can strongly influence business buyer reactions to marketer’s behaviour & strategies, especially in international marketing environment Organizational factors are also importantBuying centre usually includes many participants who influence each other, so interpersonal factors also influence business buying processParticipants may influence buying decision because they control rewards & punishments, are well liked, have special expertise, or have special relationship w/other important participants Individual factors are affected by personal characteristics oAge, income, education, professional identification, personality, & attitudes toward risk Buyers have different buying styles The Business Buying ProcessBuyers who face a new-task buying situation usually go through all stages ofbuying processBuyers making modified or straight rebuys, in contrast, may skip some of the stagesBuying process begins with problem recognitionoWhen someone in company recognizes a problem or need that can be met by acquiring specific product or serviceoCan result from internal or external stimuliBuyer next prepares general need description oDescribes characteristics & quantity of needed items or solutionsOnce buying organization has defined need, it develops the item’s technical product specificationsProduct value analysis: approach to cost reduction in which company carefully analyzes a product’s or service’s components to determine
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whether they can be redesigned & made more effectively & efficiently to provide greater valueoSellers can use value analysis tool to help secure new account & keep old onesoImproving customer value & helping customers find more cost-effective solutions gives business marketer important edge in keepingcurrent customers loyal & winning new business The buyer conducts a supplier search to find the best vendorsoBuyer can locate qualified suppliers through trade directories, computer searches, or recommendations from othersoMore and more companies are turning to internet to find suppliersIn proposal solicitationstage of business buying process, buyer invites qualified suppliers to submit proposals oBusiness marketers must be skilled in researching, writing, & presenting proposals oShould spell out how seller’s solution creates greater value for customer than competing solutionsBuyer next reviews proposals & selects supplier or suppliersoDuring supplier selection, buyer will consider many supplier attributes& their relative importance Buyer now prepares an order-routine specificationoIncludes final order w/chosen supplier or suppliers & lists items such as technical specifications, quantity needed, expected time of delivery, return policies, & warranties Vendor-managed inventory: buyers turn over ordering & inventory responsibilities to suppliers oBuyers share sales & inventory info directly w/key suppliersoSuppliers monitor inventories & replenish stock automatically as needed Final stage of business buying process is supplier performance reviewoBuyer assesses supplier’s performance & provides feedbackoSupplier performance review may lead buyer to continue, modify, or drop arrangement
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  • Spring '15
  • Marketing, new products, business buyer behaviour,  Consumers

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