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Organizational Buying
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Process Model Need assessment Develop choice criteria Request for proposals Organizational Needs Clear, concise, tractable Appropriate, affordable, timely choice, speed, risk handled Individual’s Needs info, time, design assistance info, convenience, assurance
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Process Model Supplier evaluation Supplier selection Fulfillment and monitoring Organizational Needs speed, easy, comprehensive ease, speed, good deal user friendly, effective, maintain-able Individual’s Needs assurance of accuracy easy, assurance of good choice easy to use, recognition
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Roles in the Buying Center Gatekeeper User Buyer Decider Analyzer Influencer
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Nature of the Purchase Buy class –Straight rebuy –Modified rebuy –New task Complexity Perceived risk Importance Time pressure
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Government as customer Distinguishing characteristics 1.Size -- federal government is huge ($200 Billion) 2.Long decision processes for new tasks and modified rebuys 3.Most transactions are very public 4.Red tape
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Key benefits of marketing to governments Stability Security Volume Funding of R&D; often basic research can be funded Cost efficiency requirements prepare supplier to compete elsewhere Company viability is supported
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Key comparisons with business decision process Need assessment Developing choice criteria RFP More opportunity for supplier to participate Same as above; plus more effort to standardize RFP/RFQ/RFB published; standard forms; bids published Stage in Decision Process Government vs. Business
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Comparisons, continued Supplier evaluation Supplier selection Fulfillment and monitoring Maybe multi-staged; process may be publicly scrutinized Contract awarded Process may be more formalized in gov. Stage in Decision Process Government vs. Business
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