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Copyright © 2011 Pearson Education, Inc. publishing as Prentice HallCopyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Understanding buyer behaviour is the key for a successful B2B marketing process
Major questions:› Who are they?› What do they need?› What do they buy?› How do they buy?› How much do they buy?
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Companies have many departments performing different business functions: Manufacturing/Operations, R&D, Engineering, Quality, Marketing, Sales, Purchasing, IT, Accounting, Finance, Human Resources...
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Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Internal Factors
Technology AccountingManagement MarketingLegal Production/Mfg.Finance Service
External Factors
Customer needs
and buying
behavior
Government
agencies
Independent standards-setting organizations
Various Publics
Stakeholders in each discipline within the buying organization contribute expertise such that internal and external factors are accommodated.
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Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Decision making unit of buying situation
Several people involved from several departments
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Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Organization Needso Benefits of the product or service
Individual Needso Based on professional activities and
functions of the job Individual’s Personal Needso Career, quality of life, recognition
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Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Involves more Buyers
Stakeholders in Buying Center are driven by professional responsibilities
Different decisions occur simultaneously within the Buying Center
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Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Post Purchase Behavior
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Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
1. Problem recognition1. Problem recognition
2. General need description2. General need description
3. Product Specification3. Product Specification
4. Supplier/Source search4. Supplier/Source search
8. Evaluate performance8. Evaluate performance
7. Make the transaction routine7. Make the transaction routine
6. Selection 6. Selection
5. Proposal solicitation5. Proposal solicitation
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Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Interaction is fluid and broad based Process is simultaneous, not sequential Alternative suppliers are listed Relationships build loyalty: seller and
buyer seek long-term profitable relationships
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Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
The first attempt at describing a solutionBuying center participants assess problem and need to determine what is necessary to resolve/satisfy it The complexity of the solution and the number of organizational units to be involved (size of the buying center) is determinedSuccessful suppliers are involved, often in the development of the Product Specification
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Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
A special, expensive computer software buying situation of company?
An expensive machinery buying for manufacturing process?
A human resources consultancy service Car rental service of 200 cars for sales
persons use Buying of 10 Printers to be used in the
offices of the company
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Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
look in company files and trade directories, contact suppliers for information, solicit proposals from known sellers, examine websites, catalogs, and trade publications
conduct a value analysis - an evaluation of each component of a potential purchase; examine quality, design, materials, item reduction/deletion to save costs, etc.
conduct seller analysis - a formal and systematic evaluation of current and potential suppliers; focuses on price, quality, delivery service, availability and overall reliability
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Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
An organization can decide to use several suppliers, called multiple sourcing. Multiple sourcing reduces the possibility of a shortage by strike or bankruptcy.
An organization can decide to use one supplier, called sole sourcing. This is often discouraged unless only one supplier exists for the product; however it is fairly common because of the improved communication and stability between buyer and supplier.
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Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
After selecting a supplier, the buyer will negotiate the final order by listing
the technical specifications, agreed upon price, quantities, expected time of delivery, return policies, warranties and any other terms of negotiation.
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Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Meet the customer’s technical requirements
Meet the customer’s delivery timing requirements
Meet the customer special logistics and delivery requirements
Meet the agreement overall
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Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Compare products with specs Results become feedback for other stages in
future business purchasing decisions Evalutae overall buying process and supplier
as a whole Evalutae the company’s buying process for
this spesific buying situation and make necessary modifications
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Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
A need not yet faced by Organization
New offering with new technology Requires many sources of
information and assistance Utilizes complete buying process
to investigate alternatives
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Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
A robotic assembly line purchase of a car maker company
A food company wants to buy logistics services first time from a logistics company
A special computer software program buying situation of a textile company
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Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Modified Re-Buy› Situation from New-Task Situation› Limit exposure from competitive
forces› e.g. Lap-top computers buying of
Yasar University (or a company) Straight Re-Buy
› Buying situation that is routine› Established solutions› e.g. Paper buying of Yasar University
(or a company)22
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Is the buyersatisfied?
New TaskNew Task
Definition
Selection
SolutionDelivery
No. Then next purchase
Yes. Then next purchase
End Game
Re-BuyRe-Buy
Definition
Selection
SolutionDelivery
End Game
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Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
How different isthe next situation?
Is the buyersatisfied?
Satisfied,No differences
Dissatisfied
SmallDifference
Define changesto process
LargeDifference
yes no
Straight Re-BuyStraight Re-Buy
Definition
Selection
SolutionDelivery
End Game
Modified Re-BuyModified Re-Buy
Definition
Selection
SolutionDelivery
End Game
To New Task
To New Task
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Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Is the total of all impressions that a customer has of the firm (whether relevant to the buying situation)
Is similar to product positioning that occurs with consumer goods
Needs to be maximized in the “mind” of the buyer
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Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Purchasing through
electronic connections
between buyers and
sellers – usually online.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall1-27
Copyright © 2009 Pearson Education, Inc. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice HallPublishing as Prentice Hall
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.