What is Industrial sales?

B2 B Marketing
Institutional sales
Government
Salient Features
Fewer buyers
Large buyers
Closer customer -
supplier relationship
Geographical
concentration of
buyers
Derived demand
Inelastic demand
Fluctuating demand
Professional
purchasing
Several buying
influences
Multiple sales calls
Direct purchasing
Reciprocity
Leasing
Buying Situations
Routine items
new specifications
new items

Systems Buying
Buying a total solution from one
seller
Systems Contracting
Single supply source supplies
MRO (maintenance,repair.operators)
Buying Centres
Initiators
Users
Influencers
Deciders

Approvers
Buyers
Gatekeepers
Major Influencers

Environmental
Organisational
Interpersonal
Individual
Cultural



Environmental
Macro views eg.production
levels,investment,consumer
spending,interest rates,technological
changes,political - regulatory,eco - friendly
developments
You may like to store up raw materials
fearing an impending scarcity or you may
like to sign up some long term agreements
Organisational
Purchase department
Cross - functional roles - team operation
Centralised purchasing - economical,better
deals,easy for supplies to interact at one point
Decentralisation of low price items
Internet purchasing
Long term contracts
Supplier evaluation
JIT

Interpersonal
The seller has to be sensitive to the group
dynamics existing in the organization
involved in the buying process. To that
extent any prior information researched
before the purchase decision is taken is
invaluable for the selling organization.
Individual
keep it simple
own expert
want the best
want everything done
negotiators
Cultural Factors
Necessary to know the local culture.
Business buyers buy to reduce
operating costs or satisfy social or
legal obligations
Buyer tactics
Commoditization
Multisourcing
Procurement Orientation
Cost reductions
Quality improvements
Early supplier involvement programmes
Buying Process
Problem recognition - new product,spares,purchase
material unsatisfactory,opportunities to buy some materials
economically
General need description - evolved in a team
process
Product specifications -
engineering,manufacturing.technical
Supplier search
Proposal solicitation -
quotations,proposals,presentations
Supplier selection
Buying situation - routine order products,procedural
problem products,political problem products

Routine order products
delivery
price
reliability
supplier reputation
Procedural problem products
Technical service
supplier flexibility
product reliability
Political problem products
All the previous points mentioned in the
previous two slides
Multisourcing
Hedging against risks of non - supply
supplier can have IR problems
machine breakdowns
insurance against twisting arms
Institutional Buyers
Business is big
minimum specifications
lowest price
domestic supplier preference
buyer is unlikely to understand
technicalities
time taking
patience