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MARKETING - TOPIC D(B) (organizational buying process (problem recognition…
MARKETING - TOPIC D(B)
e-procurement
adv
popular
efficient
not much paperwork
track purchases
disadv
security
b2b buying online
example alibaba.com
organizational buying process
supplier search
proposal solicitation
buyer invites qualified suppliers to submit proposals
product specification
the item's technical product specifications
supplier selection
buyer reviews proposals and selects a supplier/s
general need description
buyer describes the general characteristics& quantity of a needed item
order routine specification
buyer writes final order
with the chosen supplier/s-listing the
technical specifications,quantity needed,
expected time of delivery,return policies,
and warranties
problem recognition
external
internal
someone in the company recognizes a problem/need which can be met by acquiring a good/service
performance review
buyer assesses performance&decides to continue,modify,or drop the arrangement
factors
organisational
structure
systems
procedures
strategies
objectives
interpersonal
participants who influence each others' decisions
influence
expertise
authority
dynamics
environmental
technology
politics
supply conditions
competition
culture&customs
economy
individual
personality
preferences
motives
buying style
demographics
types
modified rebuy
modify product specifications,prices or terms
example Trelerborg
new task purchase
makes an initial purchase of an item to be used to perform a new job or solve a new problem
example BMW
straight rebuy
purchase same products routinely under aprox same terms of sale
example LIDL
differences between b2b&b2c
market structure
much fewer&larger than consumer buyers=more individual attention
unequal purchasing power-80% of business comes from 20% of clients
more geographically concentrated-reach customers directly
demand
businesses buy in much bigger bulk=more expensive=more formal&standards are higher
roles
buyers
formal authority to select supplier &arrange terms of purchase
deciders
formal/informal power to select/ approve final supplier (may be buyer)
influencers
effect the buying decisions-give recommendations
gate keepers
control the flow of info to others
users
members of business who will use product/service
involves
retailers
manufacturers
wholesalers
government
resellers/intermediaries
non-profits
service providers