B2B buying Flashcards
What are the 8 steps in the organisational buying process?
- Problem recognition
- General description need
- Product specification
- Supplier search
- Acquisition and analysis proposal
- Supplier selection
- Section of order routine
- Performance review
What are the characteristics of each buyer situation?
- Straight Rebuy:
- buyers have experience in area in question
- require little or no information
- routine problem solving stage - Modified rebut:
- benefits derived by reevaluating alternatives
- occur when displeased with performance of current supplier
- operate in limited problem solving stage - New Task:
- problem or need is completely different from previous experience
- information is required
- lack well defined criteria
- lack solution
- operate in extensive problem solving stage
What are the forces which influence organisational buying behaviour?
- Environmental forces: define limits in which supplier/buyer relations develop
- Organisational forces: problem increases in importance of buying function (research, organisational structure)
- Group forces: initiators, influencers, buyers and users. (roles, relative influence and patterns of interaction)
- Individual forces: passed experience, buying motives of individual participants, choice in processing.
What are the clues for identifying powerful buying centre members?
- isolate the personal stakeholders
- Follow the information flow
- identify the experts (influence)
- Trade the connections to the top (top management)
- understand purchasing role
in repetitive buying situations, knowledge of dynamics of supplier industry, close working relationships with individual suppliers.
What are some of the additional issues in the organisational buying process?
- Risk (uncertainty and magnitude of consequences)
- Consideration/evoked sets of alternatives
- Feasible sets of alternatives
- The variety of integration structures
What ar the buying and level of pathways to savings/revenue enhancements?
- Strategic buying:
- leverage buy (use of target company’s product value to finance purchase) linked and value buy. - Pathways to savings: buy less, buy better, consumer better, sell better.
Who are B2B buyers?
- Buyers are companies (easy jet, McDonalds)
- Government bodies (ministry of defence)
- Institutions (Kent/canterbury hospital)
What other than raw materials is used in process?
- intermediate products to produce end products e.g. engines components
- products for own consumption e.g. machinery, equipment, vehicles
- product/service for resale (clothes from M&S)
What are the distinguishing features of B2B?
- Customers are organisations/business
- Product usage
- Products can be identical to those sold in consumer markets, or slightly modified
Who are the buyers and who are the sellers?
buyers: business/organisations, individuals representing their organisations, manufacturers, resellers and end users.
Sellers: businesses or organisations, they don’t have to be producers of good or services.
What type of organisational markets are there?
- producer markets: buy raw materials or components to produce or assemble finished products: CD players TV
- Reseller or intermediary markets: they buy products to sell, retailers.
What are the characteristics of organisational markets?
- number of players
- Business transactions: less frequent purchases large orders complex negotiations, many interactions
- interaction and relationships: between acts interconnected relations, active actions, build trust, mutual benefits.
- Interdependence and networks: work with, against and through them.
Why do actors interact?
- Uncertainty for buyers: needs… difficult in specifying requirements, markets… nature of supply transactions… deliveries, quality and price.
- uncertainties for sellers: capacity, application and transaction
