This document discusses different types of business buying situations and their implications for marketing. There are three main types of buying situations: straight rebuy, modified rebuy, and new task. Straight rebuy involves routine reordering from an approved supplier list. Modified rebuy involves wanting to change some aspect of an existing purchase. New task involves purchasing a product or service for the first time. The complexity and time needed for a purchasing decision depends on factors like the cost, risk, and number of people involved. The document also discusses systems buying, where a business buyer prefers to purchase a total solution from one seller, and system selling, where sellers adopt this approach as a marketing strategy.

1. ANALYSING
BUSINESS
MARKETS
PART II

2. BUYING
SITUATIONS

3. Business buyer faces many decisions in making a
purchase
HOW MANY ?
Depends on the complexity of the
problem being solved, newness of
the buying requirement,number of
people and time required.

4. TYPES OF BUYING SITUATIONS

5. Straight
Rebuy

6. Purchaser Supplier
• The purchasing department re-orders kn a routine
basis and chooses from suppliers on an approved list.
• Product service and quality is maintained
• ‘Out-suppliers’ get a small order and then enlarge
their purchase share over time.

7. Modified
Rebuy

8. Purchaser Supplier
Purchaser Supplier
• Buyer wants to modify product specifications, prices,
delivery requirements or other terms.
• Involves additional participants on both sides
• In-supplies become nervous inorder to protect and Ou-
sippliers get an oppurtunity to gain some business.

9. New
Task

10. • A purchaser buys a product or service for
the first time.
• The greater the cost or risk,the larger the
number of participants and the greater their
information gathering-and therefore the
longer the time needed to make a decision.
Purchaser?
??
Supplier

13. Marketing implications
of buying situations

17. Systems
Buying
and
selling

18. System buying
• Many business buyers prefer to buy a total solution
from one seller -> SYSTEM BUYING
• Originated with the government
•Consists of : 1) Prime contractors
2)Second-tier contractors
• In Systems Contracting, a single supplier provides
the buyer with its entire requirement of MRO

19. Primary Contractor Second-tier Contractor

20. System selling
• Sellers recognizing that buyers like to purchase a total
solution,will adopt system selling as a marketing tool.
• Key industrial marketing strategy in bidding to large-
scale industrial projects
• Customers present potentioal suppliers with a list of
project specifications and requirements

21. Key strategy for large-scale projects

22. Created by Aburvaa Ramesh, SVCE ,
during an internship
By Prof. Sameer Mathur, IIM Lucknow.
www.IIMInternship.com