Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

0

Share

Download to read offline

Mb0046 marketing management

Download to read offline

smu fall assignment 2014 only 500 for whole subjects Mb0046 marketing management

Related Books

Free with a 30 day trial from Scribd

See all
  • Be the first to like this

Mb0046 marketing management

  1. 1. 1 Question1. Explain the steps in Business Buying process. Answer: Some of the characteristics of organizational buyers are: 1. Consumer market is a huge market in millions of consumers where organizational buyers are limited in number for most of the products. 2. The purchases are in large quantities. 3. Close relationships and service are required. 4. Demand is derived from the production and sales of buyers. 5. Demand fluctuations are high as purchases from business buyers magnify fluctuation in demand for their products. 6. The organizational buyers are trained professionals in purchasing. 7. Several persons in organization influence purchase. 8. Lot of buying occurs in direct dealing with manufacturers Steps in business buying process: 1. Recognizing an Organizational Need 2. Determining Products Specifications 3. Identifying Suppliers 4. Searching for Information and Evaluating Suppliers 5. Negotiating a Purchase Order 6. Evaluating P performances of the Product and Supplier Step 1: Recognizing an organizational need Organizational purchasing starts with the identification of demand for products and services. While there are different kinds of needs, most needs arise out of situations related to the operation of the business. Need recognition is not always as complicated or involved as it is in new task and modified re-buy decisions. It becomes a routine, particularly in a straight re-buy situation. A large construction company may negotiate a contract with a steel beam supplier to replenish inventory on demand. Purchase orders are automatically written and sent to the supplier when the inventory reaches a pre-specified mark. Such routine buying situations offer the best opportunities to use computer based database management systems. Step 2: Determining product specifications Subsequent to identification of the responsibility centre, the purchase manager also specifies exact product and service descriptions for procurement. It is also necessary to estimate the exact quantity required and the period in which these quantities need to be delivered. An estimate of other associate services required for the purchase of specified goods and services is also necessary. Step 3: Identifying suppliers
  2. 2. 2 If there are many suppliers on the list, a screening procedure that bases its decisions on certain predefined criteria is needed. The information gathered enables the organizational buyer to quickly look for suppliers who can meet minimum requirements. These requirements might be Delivery time, capacity to meet the buyer’s quantity needs, and breadth of the product line. Failure to meet a minimum requirement usually means that a supplier will not be included in the list of acceptable suppliers, no matter how well that supplier stacks up on other criteria. Because of a good past service to the company, a purchasing agent may, for example, put a supplier on the list though he/she does not meet the minimum requirements. At this stage, the buying centers search for different suppliers and try to find out their qualification or eligibility by collecting information on their performance and capability from various sources. It then notifies or requests for proposals from possible suppliers and sends these proposals for evaluation to the standing committee on purchase. Step 4: Information search and supplier evaluation A buying centre may have to evaluate several product types for a particular use before suppliers can be selected. If products are complicated, technically trained people sort through the alternatives to recommend those that meet previously developed product specifications.For instance, many companies deal with the rapidly changing technology of computer products (both hardware and software) by creating task forces that keep themselves abreast of current product developments. A task force recommends product types that are suitable for particular applications. Step 5: Negotiation of purchase orders An organizational buyer may negotiate a contractual agreement with a supplier. An agreement of this kind can cover a single purchase of a product or repurchase of the product over a period of time. Contracts are commonly used in straight re-buy situations. The buying centre of a large supermarket chain enters into contracts for purchases of frequently sold products like soap, toothpaste, and peanut butter for a year or more. Buying centers negotiate terms of payment, credit, and delivery during this stage to arrive at a specified order routine, which the supplier is required to honors under the negotiated agreement. Normally a term of contract is signed between both the parties. Step 6: Evaluation of supplier performance Organizational buyers usually want to know how well suppliers comply with the purchase agreement. Thus, an important part of organizational purchasing is evaluation of suppliers after purchase. This task is typically assigned to the purchasing department. The criteria used for supplier selection become the performance standards for this evaluation.
  3. 3. 3 Information is collected on the performance of the product or service in use. A questionnaire may be sent to users of the product to obtain their input. Other technical measures of performance may also be devised. A manufacturer who purchases aerosol packaging, for instance, may select a sample of the packaging and test it for pressure and evenness of application. The buying centre develops a provision for feedback and evaluation on a continuous basis. It also develops systems and procedures to have a regular communication with the suppliers. For full assignment call on 8602695861(devendra Kachhi) Only 950 for whole assignments

smu fall assignment 2014 only 500 for whole subjects Mb0046 marketing management

Views

Total views

262

On Slideshare

0

From embeds

0

Number of embeds

1

Actions

Downloads

3

Shares

0

Comments

0

Likes

0

×