54606873 industrial buying process factors

8/12/2019 54606873 Industrial Buying Process Factors

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ustrial Buying ProcesFactorsByy shwin Raphelshwin Raphellessy Vargheselessy Varghese


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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

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(ying Process - )uy Phase )odel- )uy Phase )odel


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-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


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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 ,


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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


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Marketing Implication o!Marketing Implication o!

T"eT"eB#$%Gri&B#$%Gri&


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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


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-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


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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 -


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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

.


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*a m p le*a m p le


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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


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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

#


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(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


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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


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(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


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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


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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


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Re!erenceRe!erence

B#ine Marketing ; F Ro1ertD3$er an&


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!!!han/ 3!!!han/ 3

54606873 industrial buying process factors

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