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Shailendra Dasari

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Decision making process by whichorganizations establish the need forpurchased products and services and identify, evaluate and choose among alternativebrands and suppliers.

Industrial(B2B) Marketing:

Marketing of goods and services to

organizations Industrial products are used in the production

of other products*

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Relatively few buyers and sellers Transactions are in bulk

Demand for industrial products is a derived

demand and therefore subject to fluctuations Relatively price inelasticPED.bmp

Professional/rational purchase behavior

More receptive to personal selling as

compared to advertising

http://localhost/var/www/apps/conversion/tmp/scratch_3/PED.bmphttp://localhost/var/www/apps/conversion/tmp/scratch_3/PED.bmp

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Relationship orientation Multiple buying influences

Geographical concentration of buyers and

suppliers Missionary selling

Shorter distribution channels

Q. What is oligospony?

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Straight rebuy

Modified rebuy

New task

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Also known as systems buying Goods and services are bundled together

Eg. Supplier of PCs also taking care of

installation and maintenance Custom built assemblies(KLT tubes

developing chassis for Scorpio)

Turn-key projects

Build, Operate and Transfer(BOT)

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Initiators

Users

Influencers

Deciders

Approvers

Buyers

Gatekeepers

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The Buying Center(Term coined byWebster and Wind):All individuals andgroups that participate in the purchase

decision making processSeveral people can occupy a given role and

one person may occupy multiple roles

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Who are the major decision participants? What decisions do they influence?

What is their level of influence?

What evaluation criteria do they use?

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1.Problem recognition2.General need description

3.Product specification

4.Supplier search5.RFP(Request for Proposal)

6.Supplier selection(evaluation of proposals,reverse auctions)

7.Release of PO8. Evaluation and rating of vendors

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Institutions : Schools, colleges , hospitals ,old-age homes ,hostels etc

Low budgets . Captive customers.

Government : Major buyer . Operate throughtenders . Lot of documentation and paperwork.

Large government projects : Global tenders

are floated.Examples?

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Direct extranet links to major suppliers Buying alliances Company buying sites Online trading exchanges Advantages: Reduced cost of transactions More efficient purchasing/selling Reduced time between order and delivery Flip side:

Erosion of one-to-one relationships Security issuesQ. What are reverse auctions?

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Availability ofalternatives

Supply marketdynamism

Complexity ofsupply

Importance ofsupply

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KAM VMI

JIT

KANBAN 100PPM/Zero Defects

Strategic Partnerships