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  • The Customer 6 Categories of Industrial Goods and Services: Understanding Organisational Markets and Buying Behaviour

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    Baher William
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    The document discusses organizational markets and buying behavior. It outlines 6 categories of industrial goods and services that organizations purchase, including raw materials, component parts, finished goods, installations, accessory equipment, and operating supplies. It also describes the differences between organizational and consumer markets, noting that organizational buyers have specific purchase motivations, the market involves fewer but larger buyers concentrated in certain geographies, and relationships between buyers and sellers tend to be closer.

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    The document discusses organizational markets and buying behavior. It outlines 6 categories of industrial goods and services that organizations purchase, including raw materials, component parts, finished goods, installations, accessory equipment, and operating supplies. It also describes the differences between organizational and consumer markets, noting that organizational buyers have specific purchase motivations, the market involves fewer but larger buyers concentrated in certain geographies, and relationships between buyers and sellers tend to be closer.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    15 views1 page

    The Customer 6 Categories of Industrial Goods and Services: Understanding Organisational Markets and Buying Behaviour

    Uploaded by

    Baher William
    The document discusses organizational markets and buying behavior. It outlines 6 categories of industrial goods and services that organizations purchase, including raw materials, component parts, finished goods, installations, accessory equipment, and operating supplies. It also describes the differences between organizational and consumer markets, noting that organizational buyers have specific purchase motivations, the market involves fewer but larger buyers concentrated in certain geographies, and relationships between buyers and sellers tend to be closer.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    derived from demand of

    consumer goods

    Demand characteristics / Relative inelastic


    motivations of industrial buyers
    Erratic
    Processors & manufacturers 1. Facilitate production
    purchase most of these Purchase motivation - Org Cyclical
    2. use by org's employed buyers purchase for:
    e.g manual & farm products Raw materials
    3. resale to other customers Fewer in #'s
    Market demographics of
    Limited supply, price is critical larger
    industrial buyers:
    Differences between Org and
    Consumer markets Geographically concentrated

    e.g flour, microchips (processed Component parts and materials


    goods - high volume purchases use of pro buying specialists

    Produces final product but not Installations Closer buyer-seller relationships


    Buyer-seller relationships
    part of final product 6 categories of Industrial
    goods and services The customer Multiple buying influences

    e.g PC's, file cabinets Accessory equipment buy on specifications


    Users
    finished goods that facilitate the
    final product production Provide info for evaluating
    Influencers
    Participants in Org purchasing alternatives e.g technical exports
    Finished goods that facilitate
    process (buying centre) control flow of info to others e.g
    repairs, manitenance, ongoing Gatekeepers
    ops Operating supplies Module 7 purchasing agents

    Buyers Authority to contract suppliers &


    e.g office suuplies & repair parts
    Understanding Organisational negotiate transactions
    Expertise to facilitate ongoing Markets and Deciders
    OPS Buying behaviour Makes final purchase decision
    Business services
    e.g law firms, agencies Routine purchase
    1) Straight rebuy Needs stay the same buy buying
    centre
    Types of buying situations 2) Modified rebuy
    PAGE 85 SUMMARY New & unique need
    Leads to closer relationships &
    3) New task buy lower costs / rate from suupliers
    Requirements planning &
    forecasts

    1) Recognition of need or
    problem Product spec determination
    Making Purchase decisions
    Purchase decision making
    Value analysis Systematic appraisal of an items
    process (same as High
    2) Search for info on product design & quality performance
    Involvement Purchase decisions
    of consumer)
    Make or buy Produce of buy in decisions?

    Choice criteria Construct quantitative ratings to


    3) Evaluation & selection of aid selection
    suppliers Vendor analysis

    Recipriocity Org favours suuplier that is also


    5) Postpurchase evaluation and a customer
    4) Purchase decision
    feedback

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