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Dr. Dawne MartinBusiness MarketingSeptember 22, 2011
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Learning Objectives Exam 1 – Thursday, September 28 To apply theories of organizational buying
behavior to buying situations to determine marketing strategy
To investigate the impact of the buying center roles on sales and marketing strategy.
Chapter 5 Anderson and Narus, “Customer Value
Propositions in Business”, HBS, March 2006 Part II of Project – Monday, October 3
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Reward-Measurement TheoryPaul Anderson & Terry M. Chambers, “A Reward/Measurement Model of Organizational Buying Behavior, Journal of Marketing, Spring, 1985.
Motivation
Role Perceptions
Abilities & Traits
Causal Attributions
Purchasing Behavior
Purchasing Performance
Performance Measurement
System
Intrinsic Rewards
Extrinsic Rewards
Perceived Equitable Rewards
Satisfaction
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Organizational Buying Behavior
Environmental Forces
Organizational Forces
Group Forces
Individual Forces
Forces Influencing Organizational Buying
Behavior
Adapted From: Frederick E. Webster, Jr. and Yoram Wind, A General Model for Understanding Organizational Buying Behavior, Journal of Marketing, April, 1972.
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Environmental Forces
Economic Influences
Political & Legal Influences
Technological Influences
Environmental Uncertainty
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Organizational Forces
Strategic Priorities Organizational
Structure & Climate Strategic Role of
Purchasing Departments &
Functional Areas Involved in Decisions
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Individual Forces
Evaluative Criteria Reward &
Measurement Systems
Information Processing
Risk Reduction Strategies Uncertainty about
outcome Magnitude of the
consequences
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Dimensions of the Buying Center Time Dimension
Time fragmentation: Members come and go Decision cycle time
Vertical and Horizontal Dimensions Vertical: number of layers of management Horizontal: number and types of
departments and outside consultants Formalization Dimension
How well are purchasing roles and tasks defined in purchasing policies and procedures?
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Buying Center Roles Initiator: Starts the purchasing process by
recognizing the need Influencers: Affect decision-maker’s final
choice through recommendation Gatekeepers: Control information into and out
of the buying center Users: Those that use the product/service Purchasing Agent: Person that makes the
purchase or does the paperwork Decision-Maker: Person who makes final
decision, or chooses between alternatives
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Sources of Information
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Complex Reward Structure
Reward Raise Recognition (pat on the
back) by boss Peer’s appreciation Personal satisfaction Nomination for staff
award
Importance Very important Important
Very important Extremely
important Important
COULD THERE BE OTHER REWARDS?COULD THERE BE OTHER REWARDS?
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SRI International Situation: Purchase of new scanners to meet
contract with large state government agency Players
Akshay Menon – SRI’s Dallas operations head Margier Cabellero – production manager George Whitaker – Chief Financial Officer Gloria Sigel – Human Resources Manager
Questions: Who plays which role in the buying center? What are the sources of risk for each? How would this information affect your marketing
of this product?