Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1

 Understanding buyer behaviour is the key for a successful B2B marketing process  Major questions: › Who are they? › What do they need? › What do they buy? › How do they buy? › How much do they buy?

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

 Companies have many departments performing different business functions: Manufacturing/Operations, R&D, Engineering, Quality, Marketing, Sales, Purchasing, IT, Accounting, Finance, Human Resources... 5

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Internal Factors Technology Accounting Management Marketing Legal Production/Mfg. Finance Service External Factors Customer needs and buying behavior Government agencies Independent standards- setting organizations Various Publics Stakeholders in each discipline within the buying organization contribute expertise such that internal and external factors are accommodated. 6

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  Decision making unit of buying situation  Several people involved from several departments 7

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  Organization Needs o Benefits of the product or service  Individual Needs o Based on professional activities and functions of the job  Individual’s Personal Needs o Career, quality of life, recognition 8

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  Involves more Buyers  Stakeholders in Buying Center are driven by professional responsibilities  Different decisions occur simultaneously within the Buying Center 9

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Need Recognition Information Search Evaluation of Alternatives Purchase Decision Post Purchase Behavior 10

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1. Problem recognition 2. General need description 3. Product Specification 4. Supplier/Source search 8. Evaluate performance 7. Make the transaction routine 6. Selection 5. Proposal solicitation 11

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  Interaction is fluid and broad based  Process is simultaneous, not sequential  Alternative suppliers are listed  Relationships build loyalty: seller and buyer seek long-term profitable relationships 12

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  The first attempt at describing a solution  Buying center participants assess problem and need to determine what is necessary to resolve/satisfy it  The complexity of the solution and the number of organizational units to be involved (size of the buying center) is determined  Successful suppliers are involved, often in the development of the Product Specification 13

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  A special, expensive computer software buying situation of company?  An expensive machinery buying for manufacturing process?  A human resources consultancy service  Car rental service of 200 cars for sales persons use  Buying of 10 Printers to be used in the offices of the company 14

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  look in company files and trade directories, contact suppliers for information, solicit proposals from known sellers, examine websites, catalogs, and trade publications  conduct a value analysis - an evaluation of each component of a potential purchase; examine quality, design, materials, item reduction/deletion to save costs, etc.  conduct seller analysis - a formal and systematic evaluation of current and potential suppliers; focuses on price, quality, delivery service, availability and overall reliability 15

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  An organization can decide to use several suppliers, called multiple sourcing. Multiple sourcing reduces the possibility of a shortage by strike or bankruptcy.  An organization can decide to use one supplier, called sole sourcing. This is often discouraged unless only one supplier exists for the product; however it is fairly common because of the improved communication and stability between buyer and supplier. 16

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  After selecting a supplier, the buyer will negotiate the final order by listing  the technical specifications,  agreed upon price,  quantities,  expected time of delivery,  return policies,  warranties  and any other terms of negotiation. 17

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  Meet the customer’s technical requirements  Meet the customer’s delivery timing requirements  Meet the customer special logistics and delivery requirements  Meet the agreement overall 18

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  Compare products with specs  Results become feedback for other stages in future business purchasing decisions  Evalutae overall buying process and supplier as a whole  Evalutae the company’s buying process for this spesific buying situation and make necessary modifications 19

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  A need not yet faced by Organization  New offering with new technology  Requires many sources of information and assistance  Utilizes complete buying process to investigate alternatives 20

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  A robotic assembly line purchase of a car maker company  A food company wants to buy logistics services first time from a logistics company  A special computer software program buying situation of a textile company 21

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  Modified Re-Buy › Situation from New-Task Situation › Limit exposure from competitive forces › e.g. Lap-top computers buying of Yasar University (or a company)  Straight Re-Buy › Buying situation that is routine › Established solutions › e.g. Paper buying of Yasar University (or a company) 22

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Is the buyer satisfied? New Task Definition Selection Solution Delivery No. Then next purchase Yes. Then next purchase End Game Re-Buy Definition Selection Solution Delivery End Game 23

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall How different is the next situation? Is the buyer satisfied? Evaluation in End Game Satisfied, No differences Dissatisfied Small Difference Define changes to process Large Difference yes no Straight Re-Buy Definition Selection Solution Delivery End Game Modified Re-Buy Definition Selection Solution Delivery End Game To New Task 24

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  Is the total of all impressions that a customer has of the firm (whether relevant to the buying situation)  Is similar to product positioning that occurs with consumer goods  Needs to be maximized in the “mind” of the buyer 25

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall  Purchasing through  electronic connections  between buyers and  sellers – usually online.

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall1-27 Copyright © 2009 Pearson Education, Inc. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.