Nature of Industrial Buying: Industrial Marketing

URDANETA CITY UNIVERSITY COLLEGE OF ACCOUNTANCY AND BUSINESS ADMINISTRATION San debilitynte West, Urdaneta City 2428 Pangasinan, Philippines Telefax no(prenominal) (075) 568-7612 Website www. ucu. edu. com BY IAN JOSEPH ROBISO MARC TON ALEXIS PEREZ MARITA LABIANO KENT NOEL JAVIER ILENE GONZALES BEVERLY ROSARIO RICHARD SUMERA LOVELY SORIA BSBA-III Major in MARKETING circumspection SUBMITTED TO MR. LADI GEORGE L. GASCON INSTRUCTOR Nature of Industrial defileing Industrial Marketing Buy Phase in Industrial acquire * get is an organizational conclusiveness making process There atomic number 18 8 Phases in Buying Decision Process * In Industrial market the buying purpose making process observable sequential stages, understanding these phase helps develop appropriate selling strategy The Buying Decision of organization is exploit by environmental factors, organizational factors, social factors and personal factors * Personal e. g. Age, Education, Income, Personality, encount er Attitude, Culture * Inter-Personal e. g. Interest, Authority, Status, Empathy, Persuasiveness * Organization e. g.Objective, Policies, Procedures, Organization Systems and Structure * Environment e. g. train of Demand, Economic Viewpoint, Technology Change, Political Development, Social Responsibility 8 Phases in Industrial Buying * Identify the problem industrial marketers identify problems in buying organization and suggest how problem is? * General pick out definition once the problem is recognized next is to resolve the problem. For technical products, the technical. * crossroad Specification developed a precise statement of the product or service, selecting right suppliers recommend. Suppliers Research search of potential suppliers from vertical hubs, functional hubs, lease extra link to major suppliers ,trade * Analyze Suppliers Proposal once the adequate suppliers decided, the buying organization obtains the request for proposals. * Suppliers pickaxe Evalua tion of proposals of competing suppliers and select suppliers * Selection of Order And Routine placing orders w/ selected suppliers, frequency of the order placement, levels of inventory follows. deed Review proceeding feedback of the suppliers take place and post grease ones palms evaluation Organizational Purchase postal service * New Task a Situation that the company is buying the item for the first time. The buying organization will typically involve had little experience with the product or service. The risk of exposure entangled is more, decisions may take longer time and top way is involved. * Modified Re- Buy This situation occurs when the organization is not satisfied with the performance of the existing suppliers.Search information about alternative source of supply. The change I supplier is likely to include several representatives, including mid level counselling and evaluative criteria are analyzed. * Straight Re-Buy Buying products or services incessan tly and purchases that are made in the past. Repeat orders with the supplier. The reordering process may be completely automated or done routinely by clerical personnel. Purchases are often handled under a contract and hurt or consistently the dominant evaluative criteria. Participants in the Business Buying ProcessParticipants in the organizational buying process play as umteen as seven different roles, namely those ofinitiator,influencer, approver, make use ofr, decider, buyer andgatekeeper * Initiators substantiate a problem or a need. The Initiator can be any individual in buying firm. * Influencers Individuals influence the buying decision. expert people such as tone of voice control engineers, design engineers have considerable influence on purchase decision. * Deciders The actual buying decisions are made by the deciders. They are one or more individuals involved in the buying decision.Senior executives may become deciders. * Buyers Buyers obtain quotations from supp liers, evaluate, hash out, process purchase, orders, maintain delivers and implement purchase policies. * Users Usersalsoplay aroleofinitiators Individuals who use products or services Define specifications ofneeded products * Approvers Approverendorse and agree to the purchaseandalso play arole ofdeciders * Gatekeeper Gatekeepers control the endure ofinformation regarding products and services and control the buying center Assistants or minor(postnominal) personofpurchase managersKey Members of Buying Center * Top Management Executives * Managing Director, Presidents, Vice President orGeneral managers * Approve purchase, decide guidelines and purchase policy * Technical People * Technical people are designengineers, production, quality control,R&Dmanagers * Specify products, technical evaluation, feedback on product supplied, negotiate with suppliers * Purchase/Material Department Senior executives, junior levels,purchaser officers or assistants * Coordinate with technical p eople, topmanagement, accounts as well the suppliers or vendors * Accounts/finance for finalizing thefinancial approvals, mode ofpaymentandinsuranceof bankguarantees * Marketing * ar the influencers in the buying process Summary * The industrial marketing need to understand the purchasing objectives and purchasing activities of the industrial buyers. The industrial buyers are influenced by both purchasing objective of the firm and personal objectives. The industrial buyers are influenced by many factors, the major factors like environmental factors, organizational factors, interpersonal factors and personal factors. * There are 3 common types of buying situations including naked as a jaybird task, modified re-buy and straight re-buy. * There are 8 phases of buying decision making process include Initiator, Influencer, Approver, User, Decider, Buyer and Gatekeeper. The industrial markets should identify the anchor members of buying centre in each buying decision.