By: Shivani Sahu

Product Exchange
Information Exchange
Financial Exchange
Social Exchange
 Need Recognition
 Researching Buyer Behaviour
 Segmenting users into groups
 Researching and Developing Products
 Setting Prices
 Ensuring Proper Delivery, Installation and after Sales
Support.
 Making Products available at Right Time, Right Place and
Right Quantity
 Allocating Marketing Resources across Product Lines
 Communicating with Target Cuctomer BEFORE,
DURING and AFTER a Sale.
 Evaluating and Controlling Ongoing Marketing
programms
Buygrid model – useful in analyzing the purchasing
decision process over various buying situations.

Model incorporates
- 3 buying situations
The “new task”
The “straight rebuy”
The “modified rebuy”
- also, 8 phases in the buying decision process
 New Task

* Problem or Need perceived by organizations is different

from past experience.
* Problem recognition – triggered by internal / external
factors.
* Decision makers & influencers enter into pblm. Solving
activity.
* Obtain a variety of information to explore alternative
soln. before a purchase can be made.
* Successful business marketer must carefully monitor the
changing needs of the org. & be prepared to respond to the
needs of new task buyers.
Straight Rebuy
* When purchases are continuing or recurring, little or
no info. is required; routine response is the normal
buying pattern.
* If delivery is prompt, quality is consistent, &
price is reasonably competitive, buyers will not
switch suppliers – straight rebuy situation

Modified Rebuy
* Buyers may feel that significant benefits like quality
improvements or cost reductions may be derived from
reevaluating supply alternatives.
* Situation occurs often when the firm is displeased
with the performance of present suppliers.
No.
Buying phases Buyclasses
New Modified Straight
task task rebuy

Anticipation & recognition of problem & a YES MAY BE NO

1.
general solution
Determination of char. & qty. of needed YES MAY BE NO
2.
item
Description of char. & qty. of needed item YES YES YES
3.
Search for & qualification of potential YES MAY BE NO
4.
sources
Acquisition & analysis of proposals YES MAY BE NO
5.
Evaluation of proposals & selection of YES MAY BE NO
6.
suppliers
Selection of an order routine YES YES YES
7.
Performance & evaluation YES YES YES
8.
Major task industrial marketer facing is
identifying those individuals who are involved
in purchasing decision process.

In industrial marketing, group of individuals

involved in purchasing decision process are
referred to as - Buying center
Who is really involved?

Buying center is an “ informal, cross-departmental decision

unit in which primary objective is the acquisition,
impartation, & processing of relevant info.”

People in buying center involve for reasons like

 They may have formal responsibility (or)
 They may be a source of information.
Various org. group members that exert influence on
purchasing decision are
- Marketing
- Manufacturing
-R&D
- General management
- Purchasing
Phase New Buy Modified Straight
Rebuy Rebuy
Need Engg. Purchasing Production
Identificatio Purchasing Production Purchasing
n R&D Engg.
Production
Supplier Purchasing Purchasing Purchasing
selection Engg. Production Production
R&D Engg. Engg.
Quality control
Type of Equipment Central Figure
company purchase

Chemical Heat exchanger Purchasing

manufacturer manager

Industrial safety Automatic drilling Engineer & VP of

products mfr. m/c mfg.
 Roles in the Buying Center

 Initiator begins the buying process

 User needs the product
 Gatekeeper controls the flow of information to other
members
 Influencer dispenses advice or shares expertise
 Decider makes the final decision
 Buyer executes the purchase
Primary roles
Deciders - CONTROLLER
Influencers - R&D ENGINEER

Secondary roles
Users - WORKER
Buyers - PURCHASER
Gatekeepers - PURCHASING MANAGER