B2B Marketing - Organizational Buying Processes and Buying Behavior:
B2B Buing Process
Shawn Burns, Global Vice President, Digital Marketing at SAP and Dan Barnicle, MD, SapientNitro, share SAP's Business-to-Business (B2B) Marketing Strategy at the Adobe Summit 2013. They explain how a shift has occurred in the business-to-business (B2B) marketing space making it time to rethink outdated notions of the B2B Customer
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Google Small Business
Uploaded on 28 Oct 2011
Dr. Yoram Wind, Lauder Professor at the Wharton School of Business, examines some of the limits of the mental models of marketing and ways to expand our thinking to increase creativity and value.
Organization buying is the decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers. (Webster and Wind)
Some of the characteristics of organizational buyers are:
1. Consumer market is a huge market in millions of consumers where organizational buyers are limited in number for most of the products.
2. The purchases are in large quantities.
3. Close relationships and service are required.
4. Demand is derived from the production and sales of buyers.
5. Demand fluctuations are high as purchases from business buyers magnify fluctuation in demand for their products.
6. The organizational buyers are trained professionals in purchasing.
7. Several persons in organization influence purchase.
8. Lot of buying occurs in direct dealing with manufacturers.
Organizational Buying Situations
In this buying situation, only purchasing department is involved. Thet get an information from inventory control department or section to reorder the material or item and they seek quotations from vendors in an approved list.
The "in-suppliers" make efforts to maintain product and service quality. The "out-suppliers" have to make efforts to get their name list in the approved vendors' list and for this purpose they have to offer something new or find out any issues of dissatisfaction with current suppliers and promise to provide better service.
In this buying situation, there is a modification to the specifications of the product or specifications related to delivery. Executives apart from the purchasing department are involved in the buying decisions. The company is looking for additional suppliers or is ready to modify the approved vendors list based on the technical capabilities and delivery capabilities.
New task buy
In this situation, the buyer is buying the product for the first time. As the cost of the product or consumption value becomes higher, more number of executives are involved in the process. The stages of awareness, interest, evaluation, trial, and adoption will be there for the products of each potential supplier. Only the products which pass all the stages will be on the approved list and price competition will follow subsequently.
Systems buying is a process in which the organization gives a single order to a single organization for supplying a full system. The buying organization knows that no single party is producing all the units in the system. But it wants the system seller to engineer the system, procure the units from various vendors and assemble, fabricate or construct the system.
Organizational Buying/Purchasing/Procurement Process
Steps in the Process
General need description
Order routine specification
Supplier performance review
For more details
Market Segmentation and Selection of Target Segmentshttp://nraomtr.blogspot.com/2011/12/market-segmentation-and-selection-of.html
Market Segmentation and Positioning
Azercell presented: Jack Trout - Positioning around the world
Published on 30 Apr 2012
Jack Trout - Positioning around the world
Presented by Azercell Telecom LLC
November 30, 2011
Buyers for a generic product constitute a market. But different buyers may have different preferences for attributes of a generic product. A marketer may have to focus on a particular group of potential buyers for a product with specific attributes. This focus is termed as targeting. Market segmentation is the effort to isolate groups of potential buyers having similar preferences for attributes of a product. Instead of mass marketing a single product, segmented marketing is done at four levels: segments, niches, local areas and inviduals.
Markets can be segmented in a number of ways.
Two broad groups of variables are used to segment consumer markets. One group of variables is consumer characteristics. The other group of variables is behavioral characteristics. Behavior is consumer response in terms of benefits sought or occasions when the product is used.
Consumer characteristics used for market segmentation include geographic, demographic and psychographic characteristics.