1.Organizational Buying Behavior
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Transcript of 1.Organizational Buying Behavior
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Organizational buying behavior
B2B Marketing
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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 2
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Consumer vs. Organizational buying behavior
Decisions made by consumers are quite simple
Organizational buying processes are more complicated, there areseveral phases and steps
Different buying behavior for different products and target groups
Simple consumer goods like food and beverages are bought veryspontaneously influenced by advertising and product presentation
For premium consumer goods (expensive clothes, computers) buyingbehavior is getting more rational comparison
Private investment goods price bargaining
Mag. Maria Peer 3
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B2B products organizational procurement
starts
More than one person involved
Buying process follows certain rules
Price comparison, standardisation, tenders =Ausschreibungen)
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B2B systems
involve more capabilities and greater
workloads
From the buyers and the suppliers sidedecision has more extensive consequences
Mag. Maria Peer 5
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B2B facilities
Industrial plants
Manufacturing installations
Office buildings
Mag. Maria Peer 6
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Main types of buying situations in B2B
Straigtht rebuy routine decision, repetitive process (energy, officesupplies, raw materials, wood, cigarettes), component suppliers for theautomotive industry little or no new information
Modified rebuy more complicated but less sophisticated: cars, trucks,
computers, consulting modified rebuys are often treated toouncautious
New task calls for thorough research industrial plant highest levelof uncertainty. Strategic new tasks are of extreme strategic andfinancial importance (aircrafts, military equipment, infrastructure) re-evaluation of alternatives and search for new information and new
alternatives
Mag. Maria Peer 7
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Buying phases
Problem recognition
General need description
Product specification Supplier search
Proposal solicitation
Supplier selection
Order routine specification
Performance review
Mag. Maria Peer 8
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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
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Preliminary application
Recognition of a problem (need) and a general
solution
Released by top management = operatingdepartment or external consultants
Result request for an offer addressed to a
number of potential suppliers
Mag. Maria Peer 10
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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 11
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Negotiation phase
= core selling process
Comprises acquisition and analysis of
proposals, evaluation of proposals andselection of suppliers
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Processing phase/warranty/ service
phase
Contains selection of an order routine
Realisation of the transaction along with the
fixation of after sales service tasks
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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
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Buying center
Role keepers have different tasks notmandatory
Buyer
User
Initiator
Gatekeeper
Influencer
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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
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User
Person working with the product
Interested in benefits and unobstructed
function of the product to buy Large knowhow and preconceived opinion
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Influencer
A person with high technical knowledge and
practical experience
definition of minimum requirements on
technical or company standards
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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 19
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Decider
Right to say yes or no
Mightiest person
Mag. Maria Peer 20
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Initiator
Person who brings new ideas and solutions
into the company
Mag. Maria Peer 21
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Specific marketing considerations in the
industrial facilities business
Long decision taking process
High risk
Complex buying center The specific competitive situation
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Product policy
Focuses on innovation
Has to care for high flexibility in research and
development And manufacturing and assembling
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Price
Strict bid and tender rules
High transparency
Add value with service offering to achieve adifferentiating position
Another aspect: financing and sourcing
models
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Distribution policy
Focus on negotiation phase
Provide excellent people in the selling center
High technical knowledge
Mag. Maria Peer 25
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Communication
Problem solver!
Proving success with comparable tasks
Reference projects!
Mag. Maria Peer 26