Professional Documents
Culture Documents
Salesperson Consumer
Order Takers and Order Getters
ORDER TAKERS ORDER GETTERS
Generate customer leads and
D
Process routine orders and re-orders
persuade consumers
I
Provides only clerical functions F Are Creative and Innovative
F
Handle pre-sold items and maintain E Handle high-priced/complex
sales.
R items and increase sales
Have limited expertise and enthusiasm Are highly expert and enthusiastic
Decision Making Units (Buying Center)
It is a group or team of individuals who participate
in buying decision process.
It connects to industrial or organizational buying
process (i.e. B2B).
Sometimes it may relate to B2C, where several
key players are involved in the decision making
process.
It refers to collective purchase decision and a
powerful marketing and stakeholders management
tool.
For marketer, it is crucial to identify the most
influential person in the buying process.
Decision Making Units (Buying Center)
Gate Buyers
Decision
keepers Makers
Decision
Making Unit
[DMU]
User Initiators
Influencers
Decision Making Units (Buying Center)
Influencer : Persuasive Role in decision making. Based on
their knowledge, experience and expertise can makes
recommendation. Eg. Consultants, lawyers etc.
Initiators : Identification of need or a problem that needs to
be solved.
Gatekeepers : Proactive in information search and deliver
recommendation to the decision makers.
Buyers : Responsible for purchasing based on pre specified
criterion to select the best as per the need. Responsible for
sourcing and negotiation.
Decision Makers : To make the final deal. To place the final
order. To review the information from the buyers, initiators
and gatekeepers. Holds important position.
Users : To bring the purchase into operation. Most concern
in specification. Heavily involved in post purchase evaluation
and buyer decision process.
Types of Buying Situations
It is guided by 6 competing concepts as,
♦ Production concept
♦ Product concept
♦ Selling concept
♦ Marketing concept
♦ Customer concept and
♦ Societal Marketing concept
The buying firm purchasing decision is based on 3
parameters as,
♦ Buying direction
♦ Procurement direction and
♦ Supply Chain Management direction
Buying Motives in Industrial Marketing
► To reduce the manufacturing cost
► To make product competitive in the market
► Regular supply of materials or not
► Durability and stability of the material
► Modernization of plant to increase efficiency
► Insured and protected products against risk
► To supplement with the technical support
► To share risk among the associated partners
► Extent of dependency on each other
► Speculation of price rise
► Government initiatives
Purchasing Criteria / Orientation
Buying Direction (New task)
♦ Company buying for the 1st time
♦ The buyer have little and limited knowledge
♦ Lack of previous experience
♦ To obtain various information about the purchase
♦ The direction of information involves, product, suppliers, price
or alternatives
♦ More risk for both the parties
♦ Decision may take longer time
♦ More people involved in decision making
♦ The prime considerations for buyer are,
● Lowest price
● To gain power over the supplier and
● To avoid risk
Purchasing Criteria / Orientation
Procurement Direction (Modified rebuy)
♦ When the firm is not satisfied with the existing supplier
♦ Primarily with intension to cost reduction
♦ To improve the quality of the material for more efficiency
♦ With an intention of more benefit and value addition
♦ When technical people needs change in product specification
♦ Strict evaluation of supplier before final decision
♦ Continuation of uncertainty and doubts
♦ Decision is based on the firm meeting the optimum criteria of
supply and the product and service need
♦ Example – Market research firm
♦ The buyer considers the practices such as,
● Collaborative relationship with major suppliers
● Working closely with other functional areas
Purchasing Criteria / Orientation
Supply Chain Management (Straight rebuy)
♦ When the product or the service is purchase in past
♦ Buying firm needs continuous supply of the product/service
♦ Places repeat order without hesitation
♦ Buying firm is satisfied with the supplier performance
♦ All the terms remains same as, product, price, delivery period,
credit period, payment terms etc.
♦ This is considered as a routine decision
♦ Low risk involved in the purchase
♦ Less or no further information is needed
♦ A win – win situation for both involved parties
♦ Some further consideration exists such as,
● To deliver superior value to the end users
● Outsourcing of the no core competitive product
● To offer support and collaboration among both parties
The Buying Decision Process
It is an organizational decision making process
and involves 8 logical sequence to complete
♦ Problem or need recognition
♦ Quality and quantity of the needed product
♦ Description of the needed product
♦ Search for potential suppliers
♦ To obtain and analyze the suppliers proposals
♦ Proposal evaluation and supplier finalization
♦ To issue purchase order
♦ Performance feedback and post purchase
evaluation
Assignment - 3
Describe the Customer Value and its
Importance in Negotiation and Selling.