1. What is Industrial sales?
B2 B Marketing
Institutional sales
Government

2. 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

3. Buying Situations
Routine items
new specifications
new items

4. Buying a total solution from one seller
Systems Buying
Buying a total solution from one seller

5. Single supply source supplies MRO (maintenance,repair.operators)
Systems Contracting
Single supply source supplies
MRO (maintenance,repair.operators)

6. Buying Centres Initiators Users Influencers Deciders Approvers Buyers
Gatekeepers

7. Major Influencers Environmental Organisational Interpersonal
Individual
Cultural

8. 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

9. 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

10. 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.

11. Individual ‘keep it simple’ own expert want the best
want everything done
‘negotiators’

12. Necessary to know the local culture.
Cultural Factors
Necessary to know the local culture.
Business buyers buy to reduce operating costs or satisfy social or legal obligations

13. Buyer tactics
Commoditization
Multisourcing

14. Procurement Orientation
Cost reductions
Quality improvements
Early supplier involvement programmes

15. 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

16. Proposal solicitation - quotations,proposals,presentations
Supplier selection
Buying situation - routine order products,procedural problem products,political problem products

17. Routine order products
delivery
price
reliability
supplier reputation

18. Procedural problem products
Technical service
supplier flexibility
product reliability

19. Political problem products
All the previous points mentioned in the previous two slides

20. Multisourcing Hedging against risks of non - supply
supplier can have IR problems
machine breakdowns
insurance against ‘twisting arms’

21. Institutional Buyers Business is big minimum specifications
lowest price
domestic supplier preference
buyer is unlikely to understand technicalities
time taking
patience