• DEFINITION:– AN ORGANISATIONAL BUYING IS A PROCESS BY
WHICH A COMPANY/ORGANISATION ESTABLISHES A NEED FOR PURCHASING PRODUCTS AND CHOOSE AMONG COMPETING BRANDS AND SUPPLIERS.
– REASON TO BUY PRODUCT:• IN PRODUCTION OF ANOTHER PRODUCT• TO SELL• RENTED• SUPPLIED TO OTHERS
DIFFER BETWEEN CONSUMER AND INDUSTRIAL BUYING BEHAVIOR
AREAS INDUSTRIAL CONSUMERBUYER BEHAVIOR FUNCTIONAL
INVOLVEMENTFAMILY INVOLVEMENT
RATIONAL/TASK MOTIVES
SOCIAL/PSYCHOLOGICAL MOTIVES PREDOMINATE
TECHNICAL EXPERTISE LESS TECHNICALINTERPERSONAL,STABLE RELATION
NON PERSONAL RELATION TO SOME EXTENT
DECISION MAKING DISTINT, OBSERVABLE STAGES
UNOBSERVABLE MENTAL STAGESAS A MARKETER YOU JOB IS TO IDENTIFY INDIVIDUALS WHO
ARE INVOLVED IN PURCHASING DECISION PROCESS.
• PRIMARY ROLES– DECIDERS: ORGANISATIONAL MEMBERS WHO
DECISION MAKING POWERS: VICE PRESIDENT FINANCE
– INFLUENCERS: INFLUENCE THE DECISION MAKING PROCESS BY PROVIDING INFORMATION ON CRITERIA FOR BUYING CONSULTANTS: Eg. INSIDE THE ORGANIZATION: R AND D SPECIALIST AND OUTSIDE: CONSULTANTS
• SECONDARY ROLES:– USERS: THEY USE SO THEY INITIATE THE
PURCHASE PROCESS: WORKERS– BUYERS: HIGH LEVEL OFFICERS, MAJOR ROLE IS
SELECTION OF SUPPLIERS AND NEGOTIATING PURCHASES . Eg PURCHASE DEPARTMENT.
– GATEKEEPERS: CONTROL THE FLOW OF INFO. Eg. RECEPTIONIST, SECRETARY.
• IMPORTANT ASPECT OF THIS MODEL– DIFFERENCE BETWEEN THE INDIVIDUALS INVOLVED.– JOINT DECISION MAKING– PRODUCT SPECIFIC FACTORS– ORGANISATIONAL FACTORS AFFECTING PURCHASE.– SITUATIONAL FACTORS– WAYS OF INFORMATION SEARCH– CONFLICT RESOLUTION AMONG INDIVIDUALS
• FOCUSSES ON THE INTERACTIONS THAT TAKE PLACE IN PROCESS OF NEGOTIATIONS.– 4 BASIC ELEMNTS ARE SAID TO CONTRIBUTE TO
THE INTERACTION BETWEEN BUYERS AND SELLERS.• THE INTERACTION PROCESS• THE PARTICIPANTS• THE INTERACTION ENVIRONMENT• THE ATMOSPHERE CREATED BY THE INTERACTION.
1. THE INTERACTION PROCESS: 2. ENVIRONMENT: Market Structure,
Dynamism, Internationalisation, Position in manufacturing channel, Social system.
3. ATMOSPHERE: Power/dependence, Cooperation, Closeness, Position in the manufacturing channel, Social system