Lesson 6 Flashcards
the decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and
suppliers.
Organizational Buying
consists of all the organizations that acquire goods and services used in the production
of other products and services that are sold, rented or supplied to others.
Business Market
Enumerate the Characteristics that contrast with consumer market
Fewer, larger buyers
Close supplier-customer relationships
Fluctuating demand
Professional purchasing
Several buying influences
Multiple sales calls
Direct purchasing
Reciprocity
Leasing
Business buyers often buy directly from manufacturers rather than through
intermediaries, especially items that are technically complex or expensive
Direct purchasing
More people typically influence business buying decisions.
Several buying influences
because of the smaller customer base and the
importance and power of the larger customers, suppliers are frequently expected to customize
their offerings to individual business customer needs
Close supplier-customer relationships
Business goods are often purchased by trained purchasing agents, who
must follow the organization’s purchasing policies, constraints and requirements.
Professional purchasing
more volatile than that for consumer goods and services (Acceleration effect)
Fluctuating demand
Buying committees consisting of technical experts and even senior management are common in the
purchase of major goods.
Several buying influences
In the case of capital equipment sales for large projects, it may take many attempts to fund a project, and the sales cycle-between quoting a job and delivering
the product-is often measured in years.
Multiple sales call
buyers selecting suppliers who also buy from them.
Reciprocity
A study by _________ found that it takes four to four and a half calls to close an average industrial sale
Mcgraw-Hill ——- Multiple sales call
instead of buying heavy equipment.
Leasing
List all the Buying Situations
Straight rebuy
Modified rebuy
New task
The purchasing department reorders on a regular basis
Straight rebuy
The purchaser buys a product or service for the first time.
New task
The buyer wants to modify product specifications, prices, delivery requirements and other terms.
Modified rebuy
The buyer chooses from suppliers on an approved list
Straight rebuy
The “in suppliers” become nervous and “out suppliers” try to offer a better deal.
Modified rebuy
The supplier makes an effort to maintain the product and
service quality and proposes “Automatic reordering system”
Straight rebuy
The “out-suppliers” attempt to
offer something new or exploit dissatisfaction with existing supplier.
Straight rebuy
is composed of all those individuals and groups who participate in the decision making process, who share some common goals and risks arising from the decisions.
Buying center
Those who will use the product or service.
Users
People who influence the buying decision. They help define specifications and provide information about alternatives.
Influencers
