8/12/2019 54606873 Industrial Buying Process Factors
1/21
ustrial Buying ProcesFactorsByy shwin Raphelshwin Raphellessy Vargheselessy Varghese
8/12/2019 54606873 Industrial Buying Process Factors
2/21
ecognition of a needecognition of a need -efinition of product type -efinition of product typeneededeeded
evelopment ofevelopment ofetailedetailed pecificationspecifications
earch of qualifiedearch of qualifiedsuppliersuppliers
cquisition andcquisition andnalysis ofnalysis ofroposalsroposals
valuation of proposalsvaluation of proposalselection of a suppilerelection of a suppilerelection of an order procedureelection of an order procedure
valuation of product performancevaluation of product performance
!"#
$%&
'
(ying Process - )uy Phase )odel- )uy Phase )odel
8/12/2019 54606873 Industrial Buying Process Factors
3/21
-ample- Recognition of a- Recognition of aneedeed rowded +ondition -efinition of product type needed -efinition of product type needed ,uilt a new office add on to*istinguilding or simply find a larlace to
/ent ,uyvelopment of detailed specificationsvelopment of detailed specifications n architect would help creapecifications ,y drawing plearch of qualified suppliersearch of qualified suppliers ,hen the suppliers will ,e contacted inclhose recommended ,y the architect
quisition and analysis of proposalsquisition and analysis of proposals
n organi.ation needsn organi.ation nee s .ew office space .ew office space
eceiving reviewing ,ids from econtractoraluation of proposals selection ofaluation of proposals selection ofsuppliersupplier he architect the e*ecutives wo, ,eet evaluate the proposals andelect a contractor
8/12/2019 54606873 Industrial Buying Process Factors
4/21
election of an order procedureelection of an order procedure reation of a contract specifying wh ,uilding will ,e complete what it will,i/e and when payments will ,e made
valuation of product performancevaluation of product performance valuation ,egins as the pro0ect ,
8/12/2019 54606873 Industrial Buying Process Factors
5/21
NEW BUYSNEW BUYS
STRAIGHT REBUYSSTRAIGHT REBUYS
MODIFIED REBUYSMODIFIED REBUYS
o m e + o n ce p tsin-u y G rid ) o d e l
8/12/2019 54606873 Industrial Buying Process Factors
6/21
Marketing Implication o!Marketing Implication o!
T"eT"eB#$%Gri&B#$%Gri&
8/12/2019 54606873 Industrial Buying Process Factors
7/21
8/12/2019 54606873 Industrial Buying Process Factors
8/21
REWARD%MEASUREMENT THEORY
THINK: BENEFITS
BEHA'IOR (HOI(E THEORYTHINK: SITUATION
RO)E THEORYTHINK: NORMS / EXPECTATIONS
1 2R S 2F B34 R )2- VA- 25
8/12/2019 54606873 Industrial Buying Process Factors
9/21
-6ARD ) AS3R ) 5- -1 2R46ARD ) AS3R ) 5- -1 2R4otivation Valence Pro,a,ilit7
*ample*ample
his points out thatuyers are motivated ,yoth 5-R 5S + R 6ARDS( hose rewards they give)hemselves 7-R 5S + (6ARDS rewards given ,y )he organi.ation
he degree ofmportance oralue attached to .reward t varies from .erson to person
erceived ,ro,a,ility orhe perceptionhat effort on aarticular setf tas/s willead toccomplishmentf performanceutcomes that, ,ill in turnead to the .esired reward
8/12/2019 54606873 Industrial Buying Process Factors
10/21
BEHA'IOR (HOI(E THEORYBEHA'IOR (HOI(E THEORY
his theory states that ,uyerso through a choice processo arrive at decisions of how .hey will ,uy
*roce
IDENTIFYING SITUATION %%%%%%%%% +
E'A)UATE *ERSONA) RE)E'AN(E
%%%%%%%%%%% ,
ASSESS A(TION A)TERNATI'ES -
8/12/2019 54606873 Industrial Buying Process Factors
11/21
SITUATION *a m p le*a m p le
he degree to which the individual wor/she degree to which the individual wor/s --- -o achieve Personal ,enefit S 8F --- -o achieve Personal ,enefit S 8F.R 5-A- 25.R 5-A- 25he degree to which the individual wor/she degree to which the individual wor/s --- -o achieve +ompany +2)PA54 2R 5-A- 25 --- -o achieve +ompany +2)PA54 2R 5-A- 25
.
8/12/2019 54606873 Industrial Buying Process Factors
12/21
*a m p le*a m p le
8/12/2019 54606873 Industrial Buying Process Factors
13/21
E'A)UATE *ERSONA)RE)E'AN(E
T"e 1#$er e2amine t"e re3ar&T"e 1#$er e2amine t"e re3ar&tr#ct#re4 1ot" !ormal - in!ormal4tr#ct#re4 1ot" !ormal - in!ormal4aociate& 3it" t"e it#ation aaociate& 3it" t"e it#ation a
&e!ine& in tage one5&e!ine& in tage one5
"
ituation ! opportunity to purchase a roduct reward structure associated ,ith product such as satisfaction with .he product ituation " opportunity to show off- ecision ma/ing s/ills reward ,tructure associated include promotions , .anagement recognition and the li/e
ASSESS A(TION
8/12/2019 54606873 Industrial Buying Process Factors
14/21
ASSESS A(TIONA)TERNATI'ES -
RE.UIREMENTS T"e 1#$er look at t"e amo#nt o!T"e 1#$er look at t"e amo#nt o!control o6er t"e tak7control o6er t"e tak7
Are t"ere an$ c"oice in 3"at t"eAre t"ere an$ c"oice in 3"at t"e
1#$er can an& can8t &o 91#$er can an& can8t &o 9 (ompan$ policie - procere(ompan$ policie - procere
ma$ limit t"e c"oice o! 1#$ingma$ limit t"e c"oice o! 1#$ing
acti6itieacti6itie
E2ample7E2ample7 (ompan$ polic$ ma$ re:#ire(ompan$ polic$ ma$ re:#ire
oliciting at lat t"ree 1i&5oliciting at lat t"ree 1i&5
#
8/12/2019 54606873 Industrial Buying Process Factors
15/21
(HOOSE BEHA'IORSTRATEGY
$
T"ere are t3o t$pe o! trateg$T"ere are t3o t$pe o! trateg$ OFFENSI'EOFFENSI'E
DEFENSI'EDEFENSI'E
*a m p le*a m p le
--- -electing A- - high selforientation ---electing another high-ompany orientation
8/12/2019 54606873 Industrial Buying Process Factors
16/21
28 -1 2R428 -1 2R4 his theory suggests that people ,ehaveithin a set of norms or e*pectationsf others due to the role in which they .ave ,een placed hen a person ma/es a purchase decision
,lone for an organi.ation the decision .s said to ,e autonomous ,hen more than one person is involvedhe group of participants in the
ompany are called the ,uying centers - ( ).r decision ma/ing units D)3 ole theory helps us to understand howhose participants interact ,ecause itefines the role ta/e when involved inpurchase
8/12/2019 54606873 Industrial Buying Process Factors
17/21
(ENTER
i t i a t o r Starts the purchase process ,y .recogni.ing the need
e c i s i o m a / e r -he person who ma/es the final.decision
o t r o l l e r +ontrols or sets the ,udget for the.purchase
f l u e c e r s Are those individuals who see/ to affect the decision ma/er s finial decisionthrough recommendations of which vendors toinclude or which products are ,est suited to
.solve the organi.ation s needs
8/12/2019 54606873 Industrial Buying Process Factors
18/21
E2ampleE2ample
PERSONSECRETARY
VICE PRESIDENT
OFFICE MANAGER
SECRETARY & OFFICE
MANAGER
VICE PRESIDENT OF
OPERATIONS
ROLE
Initiator-reports that fax keeps breakingdown
Controller-sets budget for purchase of newfax
atekeeper-gathers re!iew fro" !endors#
Reco""ender$Influencer-reco""ends aparticular product to decision "aker
%ecision &aker ' Selects fax to purchase
8/12/2019 54606873 Industrial Buying Process Factors
19/21
THEORYTHEORY
General theory of why ,uyers ,uy
-he theory descri,es as due the com,ined .effects of four factors
Individualfactors
Organizationalfactors
Market factors
Environmentalfactors
overnment regulations .nd technologyi.e and num,er of.ompetitors ,ompany si.e corporate, .ulture and policies, ,ge e*perience and.ducation
8/12/2019 54606873 Industrial Buying Process Factors
20/21
Re!erenceRe!erence
B#ine Marketing ; F Ro1ertD3$er an&
8/12/2019 54606873 Industrial Buying Process Factors
21/21
!!!han/ 3!!!han/ 3
Top Related