class 2 - organizational buying behaviour Flashcards
define the customer decision journey (CDJ).
The Customer Decision Journey (CDJ) is a framework that outlines the stages a customer goes through before, during, and after making a purchase decision. It emphasizes the importance of understanding customer behavior and touch points throughout the buying process.
what are the 5 stages of the Customer Decision Journey (CDJ)?
The CDJ includes stages such as awareness, consideration, purchase, service & loyalty
what are some strategies for engaging customers? (3)
- Encourage customers to share case studies and testimonials on the company’s website to build credibility and trust.***
- Utilize social media platforms to disseminate case studies and engage with potential customers.
- Provide timely responses to customer inquiries and link to positive product reviews to enhance the buying experience.
what are some key takeaways of the CDJ? (3)
- Businesses must be present where their clients are active, adapting their marketing strategies to fit the customer
journey. - Understanding customer pain points and expected gains is crucial for effective marketing and sales strategies.
- The emotional component of the journey should not be overlooked, as it can significantly impact customer loyalty and satisfaction.
what is the organizational buying process and what are the stages (8)?
The organizational buying process consists of several stages that guide businesses in making purchasing decisions.
The stages include problem recognition, need description, product specifications, supplier search, proposal analysis, supplier selection, order routine, and performance review.
what is the 1st stage of the organizational buying process + define it?
Problem Recognition : Identifying the need for new equipment, e.g., P&G needing high-speed packaging equipment for a new product launch.
what is the 2nd stage of the organizational buying process + define it?
General Description of Need : Collaboration between production and purchasing managers to outline necessary characteristics of the equipment.
what is the 3rd stage of the organizational buying process + define it?
Product Specification :
Detailed specifications are developed to ensure the right equipment is procured.
what is the 4th stage of the organizational buying process + define it?
Supplier Search :
Identifying potential suppliers that can meet the defined requirements.
what is the 5th stage of the organizational buying process + define it?
Acquisition and Analysis of Proposals :
Evaluating proposals from suppliers to determine the best fit.
what is the 6th stage of the organizational buying process + define it?
Supplier Selection :
Negotiating with finalists and selecting a supplier.
what is the 7th stage of the organizational buying process + define it?
Selection of Order Routine :
Establishing delivery dates and order details.
what is the 8th stage of the organizational buying process + define it?
Performance Review :
Assessing the performance of the equipment and supplier support post-installation.
what is push marketing strategy + one example?
Push strategies involve actively delivering messages to potential customers to raise awareness and drive action (ex : email marketing)
what is pull marketing strategy + one example?
Pull strategies focus on attracting customers through valuable content and experiences, drawing them in when they seek information (ex : search engine optimization (SEO))
what are the 5 factors that influence the organizational buying process?
- custome buying sitution
- group forces
- environmental forces (PESTEL)
- individual forces
- organizational forces
what are the 3 types of customer buying situation?
- new task
- modified rebuy
- straight rebuy
what is the strategy for new task buying situation ?
Marketers should actively participate in the procurement process to gain a competitive advantage by understanding the buying organization’s needs.
Gathering information on specific requirements and proposing tailored solutions can lead to successful outcomes.
what is the strategy for straight rebuy situation ?
In straight rebuy scenarios, purchasing managers maintain control while allowing employees to make direct online purchases from approved suppliers.
E-procurement systems facilitate a streamlined purchasing process, enhancing convenience for employees and efficiency for managers.
Marketing communications should target both purchasing managers and individual employees to ensure comprehensive engagement.
what are some challenges for out suppliers in a straight rebuy situation ?
Out suppliers face significant challenges due to perceived risks associated with shifting from known to unknown suppliers.
Effective marketing strategies must focus on understanding the organization’s buying needs and providing compelling reasons to reconsider existing suppliers.
Information gathering and relationship-building are essential for out suppliers to gain traction in competitive markets.
what is a modified rebuy?
Modified rebuy occurs when a buyer is dissatisfied with their current supplier and seeks alternatives, often due to issues like poor service.
what are the strategies for in and out suppliers in a modified rebuy situation?
Strategies for ‘in’ suppliers include immediate action to resolve customer issues
The ‘out’ suppliers can offer performance guarantees to entice buyers.
