M6 Flashcards
ALL BUSINESS AND ORGANIZATIONAL CUSTOMERS
- PRODUCERS
- INTERMEDIARIES
- GOVERNMENT UNITS
- NONPROFITS
PRODUCERS
○ Manufacturers
○ Farms, mines, and etc.
○ Financial institutions
○ Other providers
INTERMEDIARIES
○ Wholesalers
○ Retailers
GOVERNMENT UNITS
○ Federal
○ State and Local
NONPROFITS
○ National
○ Local
BUYING CENTER
- BUYERS
- INFLLUENCERS
- DECIDERS
- GATEKEEPERS
- USERS
Determine appropriate specs or information that the
company needs before buying.
INFLUENCERS
Responsible for dealing with suppliers
BUYERS
are responsible for dealing directly with
suppliers. They handle the practical aspects of purchasing, including arranging the terms of the sale, negotiating prices, delivery, and contracts.
BUYERS
are individuals who have the final say in
the purchasing decision. This typically includes senior managers, department heads, or finance executives who approve or disapprove the purchase.
DECIDERS
control the flow of information and
access to decision-makers. They may filter the information that reaches deciders or other key members of the buying center.
GATEKEEPERS
are the individuals or groups who will ultimately use the product or service being purchased.
USERS
STEPS/MODEL OF ORGANIZATIONAL BUYING
- STEP 1: DEFINING THE PROBLEM
- STEP 2: BUYING PROCESS
- STEP 3: MANAGING THE BUYER-SELLER RELATIONSHIP
STEP 1: DEFINING THE PROBLEM
○ Problem recognition
○ Need description
○ Product specification
STEP 2: BUYING PROCESS
○ Establish buying process
○ Gather information
○ Solicit bids
○ Select the supplier
STEP 3: MANAGING THE BUYER-SELLER RELATIONSHIP
○ Structure the relationship
○ Monitor supplier performance
ORGANIZATIONAL BUYING PROCESSES
- NEW-TASK BUYING
- MODIFIED REBUY
- STRAIGHT REBUY
○ New product and new supplier
○ This refers to a situation where the organization is
purchasing a product or service for the first time.
NEW-TASK
○ Either new product or new supplier
○ The organization has previously purchased a product
or service but now wants to modify the order in some way—this could be in terms of specifications, pricing, volume, or supplier terms.
MODIFIED REBUY
○ Same product and same supplier
○ This is the most routine and least complex buying
process. In a straight rebuy, the organization simply
STRAIGHT REBUY
MAJOR SOURCES OF INFORMATION USED BY ORGANIZATIONAL BUYERS
- MARKETING AND PERSONAL SOURCES
- NONMARKETING AND PERSONAL SOURCES
- MARKETING AND IMPERSONAL SOURCES
- NONMARKETING AND IMPERSONAL SOURCES
MARKETING AND PERSONAL SOURCES
○ Salespeople
○ Others from supplier firms
○ Trade shows
NONMARKETING AND PERSONAL SOURCES
○ Buying center members
○ Outside business associates
○ Consultants and outside experts
MARKETING AND IMPERSONAL SOURCES
○ Online events and virtual trade shows
○ Sales literature and catalogs
○ Emails and newsletters
○ Website content (blogs, videos, case studies, and
white papers)
○ Social media
NONMARKETING AND IMPERSONAL SOURCES
○ Online searches
○ Rating services
○ Trade associations
○ News publications
NEW-TASK BUYING REQUIRES INFORMATION
○ Websites
○ Search engines
○ Online Communities
○ Competitive bids
