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Organizational buying refers to the process by which formal organizations establish needs for products and services and identify, evaluate, and select among alternative suppliers. Business markets have fewer but larger buyers, close supplier relationships, professional purchasing, and fluctuating demand. The buying process involves multiple influences and sales calls. Key challenges for business marketing include understanding customer needs, competing globally, improving analytical skills, and driving innovation. Participants in the buying center include initiators, users, influencers, deciders, approvers, buyers, and gatekeepers across the organization.
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1. The document discusses organizational buying and business marketing. It describes the business market, key participants in the buying process, and factors that influence business buying decisions.
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Presentation1.pptx
- 2. What is Organizational Buying? Organizational buying refers to the decision-making process by which formal organization establish the need for purchased products and services ,and identify, evaluate, and choose Among alternative brands and suppliers
- 3. Top Business Marketing Challenges • Expand understanding of customer needs • Compete globally as China and India reshape markets • Master analytical tools and improve quantitative skills • Innovative as an engine of growth • Create new organizational models and linkages
- 4. Characteristics of Business Markets • Fewer, larger, buyers • Close supplier- customer relationship • Professional purchasing • Many buying Influences • Multiple sales calls • Derived demand Inelastic demand (not affected by price change) • Fluctuating demand • Geographically concentrated buyers • Direct purchasing
- 5. Buying Situation • Straight rebuy -Purchasing department reorder supplies such as office supplies and bulk order. -Goal is to gets small order and then enlarge their purchase share over time . • Modified rebuy -The buyer in modified rebuy want to change product specification, price, delivery requirement . • New task -A new task purchaser buy a product for the first time . New task buying is marketer’s greatest opportunity and challenge.
- 6. Participants In Business Buying Process The Buying Center The buying include all members of organization who play any of the following 7 roles in purchasing decision process • Initiators • Users • Influencers • Deciders • Approvers • Buyers • Gatekeepers (Ex. Purchasing agent ,receptionist , telephone operators)