B2B Marketing – Chapter 3 – Flashcards
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3 types of buying situations
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1) New Task 2) Modified Rebuy 3) Straight Rebuy
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new-task buying situation
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organization decisions makers perceive the problem or need as totally different from previous experiences
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buying-decision approaches (for new task)
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1) judgmental new task 2) strategic new task
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modified rebuy situation
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organizational decision makers feel they can derive significant benefits by reevaluating alternatives
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limited problem solving
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best describes the decision-making process
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buying-decision approaches (for modified rebuy)
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1) Simple modified rebuy 2) Complex modified rebuy (involves a large set of choice alternatives and poses little uncertainty but the range of choice enhances the buyer's negotiating strength)
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strategy guidelines
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in a modified rebuy the direction of the marketing effort depends on whether the marketer is an "in" or an "out" supplier
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strategy implications
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the business marketer should attempt to identify purchasing patterns that apply to the firm
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straight rebuy situation
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appropriate when there is a continuing or recurring requirement, buyers have substantial experience in dealing with the need and require little or no new information
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routine problem solving
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the decision process organizational buyers emply in the straight rebuy
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operating resources
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the goods and services needed to run the business such as computer and office supplies, maintenance and repair items, and travel services.
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buying decision approaches (for straight rebuy)
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1) Causal 2 Routine low-priority
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Causal purchases
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involve no information search or analysis and the product or service is of minor importance
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Routine low-priority decisions
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decisions are somewhat more important to the firm and involve a moderate amount of analysis
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Forces shaping organizational behavior
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1) environmental forces: economic influences technological influences 2) organizational forces:
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economic influences
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because of the derived nature of industrial demand, the marketer must be sensitive to the strength of demand in the ultimate consumer market
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technological influences
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rapidly changing technology can restructure an industry and dramatically alter organizational buying plans
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Strategic priorities in purchasing
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1) aligning purchasing with strategy (not just buyers) 2) exploring new value frontiers (it's not just about price) 3) putting suppliers inside (the best value chain wins) 4) pursuing low-cost sources (a world worth exploring)
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offer strategic solutions
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as purchasing assumes a more strategic role, the business marketer must understand the competitive realities of the customer's business and develop a value proposition that advance its performance goals
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Contributing factors of centralization of procurement
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1) centralization can better integrate purchasing strategy with corporate strategy, and e-procurement software tools now enable managers to monitor and analyze corporate spending and data in minute detail 2) an organization with multiple plant or office locations can often cut costs by pooling common requirements 3) the nature of the supply environment also can determine whether purchasing is centralized 4) the location of purchasing in the organization often hinges on the location of key buying influences
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Centralization vs Decentralization
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decisions are made at the TOP of the organization, or made at the lower levels
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evaluative criteria
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specifications that organizational buyers use to compare alternative industrial products and services
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selective processes
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1) selective exposure 2) selective attention 3) selective perception 4) selective retention
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selective exposure
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The process by which individuals screen out messages that do not conform to their own biases
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selective attention
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the focusing of conscious awareness on a particular stimulus, as in the cocktail party effect
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selective perception
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the phenomenon that people often pay the most attention to things they already agree with and interpret them according to their own predispositions
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selective retention
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a process whereby a consumer remembers only that information that supports personal beliefs
