1 / 26

Organizational buying behavior

Organizational buying behavior. Presentation created by Mag. Maria Peer based on the lecture BBM1 – Marketing Mag. Andreas Zehetner FH Steyr. Organizational buying behavior. Consumer vs. Organizational buying behavior Main types of buying situations in B2B Stages of decision in B2B

chet
Download Presentation

Organizational buying behavior

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Organizational buying behavior Presentation created by Mag. Maria Peer based on the lecture BBM1 – Marketing Mag. Andreas Zehetner FH Steyr

  2. Organizational buying behavior • Consumer vs. Organizational buying behavior • Main types of buying situations in B2B • Stages of decision in B2B • Roles in B2B procurement • Influences on organizational behavior • Buying centres in summary Mag. Maria Peer

  3. Consumer vs. Organizational buying behavior • Decisions made by consumers are quite simple • Organizational buying processes are more complicated, there are several phases and steps • Different buying behavior for different products and target groups • Simple consumer goods like food and beverages are bought very spontaneously – influenced by advertising and product presentation • For premium consumer goods (expensive clothes, computers) – buying behavior is getting more rational – comparison • Private investment goods – price bargaining Mag. Maria Peer

  4. B2B products – organizational procurement starts • More than one person involved • Buying process follows certain rules • Price comparison, standardisation, tenders = Ausschreibungen) Mag. Maria Peer

  5. B2B systems • involve more capabilities and greater workloads • From the buyer‘s and the supplier‘s side decision has more extensive consequences Mag. Maria Peer

  6. B2B facilities • Industrial plants • Manufacturing installations • Office buildings Mag. Maria Peer

  7. Main types of buying situations in B2B • Straigtht rebuy – routine decision, repetitive process (energy, office supplies, raw materials, wood, cigarettes), component suppliers for the automotive industry – little or no new information • Modified rebuy – more complicated but less sophisticated: cars, trucks, computers, consulting – modified rebuys are often treated too uncautious • New task – calls for thorough research – industrial plant – highest level of uncertainty. Strategic new tasks are of extreme strategic and financial importance (aircrafts, military equipment, infrastructure) – re-evaluation of alternatives and search for new information and new alternatives Mag. Maria Peer

  8. Buying phases • Problem recognition • General need description • Product specification • Supplier search • Proposal solicitation • Supplier selection • Order routine specification • Performance review Mag. Maria Peer

  9. Stages of decision in B2B procurement • Backhaus developed a widely usable model to distinguish between 5 phases of procurement • Preliminary application (initiation phase) • Tender proposal • Negotiation • Processing of order • Warranty and services Mag. Maria Peer

  10. Preliminary application • Recognition of a problem (need) and a general solution • Released by top management = operating department or external consultants • Result  request for an offer addressed to a number of potential suppliers Mag. Maria Peer

  11. Tender preparation phase • Determination of characteristics and quantity of needed items • Search for and qualification of potential sources • Supplier has to provide an offer • Tries to be incomparable with his competitors • Customer tries to make the offer best comparable Mag. Maria Peer

  12. Negotiation phase • = core selling process • Comprises acquisition and analysis of proposals, evaluation of proposals and selection of suppliers Mag. Maria Peer

  13. Processing phase/warranty/ service phase • Contains selection of an order routine • Realisation of the transaction along with the fixation of after sales service tasks Mag. Maria Peer

  14. Roles in B2B procurement – buying center concept • Group of people involved in the buying process – buying center • Webster/Wind model shows 5 different roles – not institutionalised • This causes probleme in identifying and targeting the right people within the decision process Mag. Maria Peer

  15. Buying center • Role keepers have different tasks – not mandatory • Buyer • User • Influencer • Gatekeeper • Decider • Initiator

  16. 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 Mag. Maria Peer

  17. User • Person working with the product • Interested in benefits and unobstructed function of the product to buy • Large knowhow and preconceived opinion Mag. Maria Peer

  18. Influencer • A person with high technical knowledge and practical experience  definition of minimum requirements on technical or company standards Mag. Maria Peer

  19. Gatekeeper • Controls the flow of information within the buying center • Assistant of decision maker • Influence by preparing the decision and the relevant documents (Scriptum p 33-34 + summary) Mag. Maria Peer

  20. Decider • Right to say yes or no • Mightiest person Mag. Maria Peer

  21. Initiator • Person who brings new ideas and solutions into the company Mag. Maria Peer

  22. Specific marketing considerations in the industrial facilities business • Long decision taking process • High risk • Complex buying center • The specific competitive situation Mag. Maria Peer

  23. Product policy • Focuses on innovation • Has to care for high flexibility in research and development • And manufacturing and assembling Mag. Maria Peer

  24. Price • Strict bid and tender rules • High transparency • Add value with service offering to achieve a differentiating position • Another aspect: financing and sourcing models Mag. Maria Peer

  25. Distribution policy • Focus on negotiation phase • Provide excellent people in the selling center • High technical knowledge Mag. Maria Peer

  26. Communication • Problem solver! • Proving success with comparable tasks • Reference projects! Mag. Maria Peer

More Related