This will reflect badly on the performance of the Purchase Function. The Consumers change their Purchasing Habits frequently. 0000003969 00000 n
They may define the specifications of the needed Product .They may be shop floor workers, maintenance engineers, or R & D Engineers. BUYERS :- The Major roles or responsibilities of buyers are obtaining quotation from suppliers, supplier evaluation and selection, negotiation, processing purchase orders, expediting delivery and generally implementing purchasing policies of the firm. v`S+8S"%|~C0Y+*-v;$UJrvT9 `MkRz)! Involvement of family members in the buying process. However, evidence indicates that consumer markets have embraced the marketing concept more fully than their Industrial Counterparts. Modified Re buy situation are not very difficult to handle. 
2. 2. 
endobj
What constitutes an industrial demand for products/services? The characteristics of the product or service involved have a significant effect on the Industrial Exchange process. Reward versus coercive power. 6. 3. O! 5 0 obj
What are the characteristics of Business Marketing and outline the exchange transactions that normally occur in it. Explain the buy phases in the Industrial buying-decision process. Robinson formulated the buy grid framework which combined three types of buying situations (buy classes) with eight phases of buying decision process (buy phases). 6 0 obj
Purchase decisions are mostly made on Physiological/ Social/ Psychological needs. 0000004490 00000 n
For example, a pump cannot be used for pumping water, if the electric motor or diesel engine is not available. Usually they are purchase [or materials] officers & executives. 6. In view of this, there is a risk of becoming so enamored with a technical accomplishment or particular product parameters that the necessary flexibility for responding to customer needs in a competitive market place disappears. yR,A^WLKeNOJ~T7B0y |l#owC$eTYK)RP=qI
hF!CM=Pq B rl2P DPF=nw_"R:h27}NI~q J*Yo4HzPI2! 3 0 obj
BUY - PHASES IN THE INDUSTRIAL BUYING-DECISION PROCESS. endobj
Expert Power. 4. 7. Compliance with Product specifications 2. But for high value and technically complex products, senior executives are the deciders. 2. Often users play the role of initiators. They also control sales peoples meetings with members of buying of buying centre. 0000000731 00000 n
Purchase Decisions Take Longer time and Involve many individuals from a) Technical Dept b) Commercial Dept/Materials Dept c) Finance Dept d) Corporate Management (Sometimes) In Industrial Marketing: 1. Ronald F. Clayton Mostly non personal relationship. [emailprotected] 0000008116 00000 n
2.JOINT DEMAND Joint demand occurs when one industrial Product is useful if other product also exists. 8. `|4P,w\A8vD$+)%@P4 0L ` ,\@2R 4f Collaborating May be we can work this one out. 9. %
The Industrial Marketing Concept involves more than facilitating exchange with customers; it is a philosophical point of view that has basis the formation of a partnership between buyer and seller for the purpose of achieving the organization goals of both Too often, Industrial Organizations, tend to be technically oriented, much more interested in a particular product and its technical development. 4. For marketing effectiveness, the product should always be regarded as a variable and should be viewed from the perspective of the customer. 8 0 obj
endstream
Decision can be taken by junior executive in the purchase dept.
JFIF ` ` C 3. Learn how we and our ad partner Google, collect and use data. Coalition formation among certain buying center members. Industrial Marketing: (Business Marketing): Consists of all activities involved in the marketing of products and services to organizations ( i.e. Personal Objectives:- Industrial Buyers try to achieve both organizational purchase objectives and personal objectives. Consumer Markets. There are six roles of buying center members. INDUSTRIAL BUYING PROCESS Purchasing Objective: Generally, the Purchase / Materials Management is defined as buying the right quantity, at the right price, for delivery at the right time and place It is the Managements job to define what is right for each dimension. Write a brief note on Classification of Industrial Products and services. 1. Power in conflict resolution. All rights reserved. DIFFERENCES BETWEEN INDUSTRIAL AND CONSUMER MARKETING Industrial Markets.
Buying is an organizational-decision making process. Exchange of Information between Specialists and Representatives from each functional area, from both seller and buyer organizations. Involvement of various functional areas in both buyer and seller firms.
4. Product Quality 3. CROSS-ELASTICITY OF DEMAND Cross elasticity of demand is the responsiveness of the sales of one product to a price change in another product. Enumerate the differences between B2B & B2C Marketing. 0000005298 00000 n Selection of an order routine. In Contrast, in Consumer Marketing: 1. $E(9y3OUqVUqT=S2Q). The most difficult buying situation occurs for a new task in buy phases of problem recognition, and determination of product characteristics and specification. The B2B marketing process is much more involved and longer. Geographically disbursed and mass markets. It is important for a B2B company to focus on building relationships, which also spread a positive word of mouth B2B companies are focused on educating various companies as they sell complicated products Marketing techniques such as newsletters, and product or service coverage & customized & direct selling is used Exchange transactions in the Industrial Market consist of: 1) Product or Service Exchange.
Emphasis on personal selling. <> v@~5&n5#+[R;CnBgT5xea#5Cn8M4:T ap&Dhf]BIf`TABBNpd~y@.&$k3+\OZDN%pQqZ6,3raZsouuzp7-. 3. The Webster and Wind Model of Organizational Buying Behavior. Competing Let us do it my way. Review Questions: 1. Many aspects of an agreement between buyers and sellers in the Industrial Market are not fully formalized or based on legal criteria until the end of the transaction period. xakU\;+ON<9u\$&'S=e>5)pz 0^#@Y`'W H6H|$vDLlpq|' n=XERrsq3tRqGRD4ZDtYiO jiV SNgB{A-ne% F{lH^5BzZ3W[?/3W=DS A^z" Development of specifications or description of needed product. Delivery / Availability:One of the prime objectives is to ensure that purchased goods and services are available or delivered as and when & where required, If not work will come to a grinding halt. 0000062132 00000 n A Material Handling company, for example, opened its own branches with warehousing facilities, in place of its agents, in order to improve customer service. b) The stimulation of demand. Channels are more direct and fewer intermediaries/middlemen. 0000002153 00000 n Competitive bidding and negotiated prices. Sometimes outside Consultants or Experts play the role of influencers by drawing specifications of products or services. <> xYn7}wA ]QZBv` pu#;, X{8:rg?7Kp/,/Of]<<>,_?~dG'h>>BxL?`J(.5sC|4 ?Q;ZLu#CXvzq*Nd 98xc(YRK&ajvtpm Lm8U:c2`%R??ud3#5=wz\;F]Aa4.[=2HA There are eight phases (or stages) in the buying decision process, indicating the logical sequence of activities 1. All eight phases of industrial buying process are applicable to a new buying solution however, in case of modified re buy and straight re buy situations, only some of the buy phases are applicable. "FV %H"Hr ![EE1PL* rP+PPT/j5&uVhWt :G+MvY c0 L& 9cX& jp BN*hAKVPc(xt`t^l zM"C1J0d4q^gs(GWED=pD"r^t@db$zU$DZXUD_y]XG/;W|K`.a#_ 25N_(!Da#ZS-0a2pw[%{0J'zw >c endstream endobj 203 0 obj 830 endobj 187 0 obj << /Type /Page /Parent 167 0 R /Resources 188 0 R /Contents 192 0 R /MediaBox [ 0 0 595 842 ] /CropBox [ 0 0 595 842 ] /Rotate 0 >> endobj 188 0 obj << /ProcSet [ /PDF /Text ] /Font << /TT2 190 0 R /TT4 194 0 R /TT6 196 0 R >> /ExtGState << /GS1 198 0 R >> /ColorSpace << /Cs6 189 0 R >> >> endobj 189 0 obj [ /ICCBased 197 0 R ] endobj 190 0 obj << /Type /Font /Subtype /TrueType /FirstChar 32 /LastChar 150 /Widths [ 250 0 408 0 0 833 778 180 333 333 500 0 250 333 250 278 500 500 500 500 500 500 500 500 500 500 278 278 0 0 0 444 0 722 667 667 722 611 556 722 722 333 389 722 611 889 722 722 556 722 667 556 611 722 722 944 0 722 0 0 0 0 0 500 0 444 500 444 500 444 333 500 500 278 278 500 278 778 500 500 500 500 333 389 278 500 500 722 500 500 444 0 0 0 0 0 0 0 0 0 0 1000 0 0 0 0 0 0 0 0 0 0 0 0 333 444 444 0 500 ] /Encoding /WinAnsiEncoding /BaseFont /NPKLOA+TimesNewRoman /FontDescriptor 191 0 R >> endobj 191 0 obj << /Type /FontDescriptor /Ascent 891 /CapHeight 656 /Descent -216 /Flags 34 /FontBBox [ -568 -307 2028 1007 ] /FontName /NPKLOA+TimesNewRoman /ItalicAngle 0 /StemV 94 /XHeight 0 /FontFile2 199 0 R >> endobj 192 0 obj << /Length 687 /Filter /FlateDecode >> stream Address: Copyright 2022 PDFCOFFEE.COM. 0000002112 00000 n They may be one or more Individuals involved in the buying decisions. List Prices or maximum retail prices or MRP. 2. HS]HSa~9z:s;sMrf*uib:IjYA]im4$*S.F&aq2$@/)q]q R C2d8{]~##h{c_b IKe9LNJq|B3c!wJx,iu&i5M~W^k=7uCAw&dvY1 Yg'zV4$IWGTN){I m2KUmyHhKUG PZ<0a]HiC4KmPR }9>Z`m -cxaO*NRt1$q".P!Q\9hqQbN56X+7i f0x6YKtTU@UnU=mw0t The Relationships between the seller and buyers are highly valued and over a period of time they become stable because of a high degree of Interdependence. <> Legitimate power. $.' Straight Re buy situation are handled in a routine matter. THE INDUSTRIAL MARKETING CONCEPT The marketing concept holds that the key task of the organization is to define the needs of a target market and adopt the organization products or service to satisfy those needs more effectively than its competitors. Search for and qualifications of potential suppliers. Supplier Relationship:- To develop a good long term Supplier / Vendor Relationship and to develop new sources of supply. INDUSTRIAL OR BUSINESS MARKETING Briefly Industrial or Business Marketing can be defined as human activity directed towards satisfying wants and needs of organizations through exchange processes. While the nature of markets differs, the marketing concept is applicable and important in both the Industrial and Consumer markets. 3) Financial Exchanges may involve such considerations as the granting of credit or the need to exchange money from one currency into another when dealing with foreign buyers. 6. 0000002977 00000 n 4. B2B Marketing NATURE OF INDUSTRIAL MARKETING. Product Quality: The Product Quality should be consistent with the Specifications and use of the Product. On the other hand, during the period of prosperity there is an increased production and sales of consumer goods, which results in an increased demand for industrial goods. 6. 1 0 obj endobj The Jagdish Sheth Model of Industrial Buyer Behavior This model emphasizes the joint decision making by two or more individuals, and the psychological aspects of the decision making individuals in the industrial buying behavior. This would help an Industrial Firm to take strategic decisions on diversifying through Backward, Forward or Horizontal Integration, or by expanding its markets from domestic to international markets. Elaborate. The goal of B2B marketing is to convert prospects into customers. It is important to ensure consistency in Product Quality to reduce the cost of inspection, interruptions in production process due to rejections and replacement of rejected material. What do you understand by Buying centre Roles and six roles of buying center members? 7 0 obj Performance feedback and post-purchase evaluation. 0000001947 00000 n Customer benefits and need satisfaction, rather than physical product should be the centre of attention Customer satisfaction should be paramount in all corporate decision making. 0000007976 00000 n :]PG`ZF R4kMV Technical expertise required. ):N- Anc4G@:51Koes7,Rl5?2D ?22t=S)SlcrOn/{VY[}TX=3Po Zk=]Nj=hXi\p5ti&[>g9QhRHJg_iBr|c:p2HIxQWNE'WQqc#8M'SBh6~9^q,mux(f}jV6Xk0K~_0i%. Basic Definitions: The Relationship between a Buyer and a Seller is Non-Personal. 6. stream During periods of recession or reduced consumer demand, industrial firms reduce their inventories or reduce the production or do both. Np%p `a!2D4! Lowest Price :Subject to availability in time, with good and consistent quality, buyers would like to buy at the lowest price. Basic Definitions: Marketing: It is human activity directed at satisfying human needs and wants through exchange process. DECIDERS:Actual buying decisions are made by the deciders. endobj Hence, product Quality is considered as one of the important objectives of purchasing. Obtaining and analyzing supplier proposals. 9 0 obj Horizontal Integration: A company seeks ownership or control of some of its competitors. INFLUENCERS:- They influence the buying decision. Thus inter-organizational contacts take place and interpersonal relationships are developed.
<>>> endobj It is derived from the ultimate Demand for Consumer Goods and Service. PBs,;EJ1^>/6NMKmCojRX"im%Dbd#/5]szy8#E *Gc%m[hmt3,%ZZ)nN]; UkO%}dW}U+{1~8 m#sy&&s i4qc"M)qAL#]>jL ^ubk-[SZ GRlXbpA=v
Determination of the application or characteristics and quantity of needed product. Service, delivery and availability are somewhat important. 5. The Demand for Industrial Products and Service Does Not Exist By itself. 3) The Buying Decisions are based on Physiological, Social and Psychological needs of a Family or Household. 1. 2. DERIVED DEMAND:Industrial Customers buy Goods And Services for Use in Producing other goods and services. For instance, A Company reduced competition by acquiring the management control of some of its competing firms. Acceptable Payments and other Commercial Terms 5.
3. Industrial Demand is, therefore, called Derived Demand 1. Before identifying the individuals and groups involved in the buying decision process, it is important to understand the roles of buying-center members. 4) Social Exchange is important in such areas as reducing uncertainty between buyer and seller, avoiding short term difficulties and maintaining the exchange relationship over a lengthy transaction period. 185 0 obj << /Linearized 1 /O 187 /H [ 841 948 ] /L 365859 /E 92786 /N 48 /T 362040 >> endobj xref 185 19 0000000016 00000 n
2. 2. endobj
What constitutes an industrial demand for products/services? The characteristics of the product or service involved have a significant effect on the Industrial Exchange process. Reward versus coercive power. 6. 3. O! 5 0 obj
What are the characteristics of Business Marketing and outline the exchange transactions that normally occur in it. Explain the buy phases in the Industrial buying-decision process. Robinson formulated the buy grid framework which combined three types of buying situations (buy classes) with eight phases of buying decision process (buy phases). 6 0 obj
Purchase decisions are mostly made on Physiological/ Social/ Psychological needs. 0000004490 00000 n
For example, a pump cannot be used for pumping water, if the electric motor or diesel engine is not available. Usually they are purchase [or materials] officers & executives. 6. In view of this, there is a risk of becoming so enamored with a technical accomplishment or particular product parameters that the necessary flexibility for responding to customer needs in a competitive market place disappears. yR,A^WLKeNOJ~T7B0y |l#owC$eTYK)RP=qI
hF!CM=Pq B rl2P DPF=nw_"R:h27}NI~q J*Yo4HzPI2! 3 0 obj
BUY - PHASES IN THE INDUSTRIAL BUYING-DECISION PROCESS. endobj
Expert Power. 4. 7. Compliance with Product specifications 2. But for high value and technically complex products, senior executives are the deciders. 2. Often users play the role of initiators. They also control sales peoples meetings with members of buying of buying centre. 0000000731 00000 n
Purchase Decisions Take Longer time and Involve many individuals from a) Technical Dept b) Commercial Dept/Materials Dept c) Finance Dept d) Corporate Management (Sometimes) In Industrial Marketing: 1. Ronald F. Clayton Mostly non personal relationship. [emailprotected] 0000008116 00000 n
2.JOINT DEMAND Joint demand occurs when one industrial Product is useful if other product also exists. 8. `|4P,w\A8vD$+)%@P4 0L ` ,\@2R 4f Collaborating May be we can work this one out. 9. %
The Industrial Marketing Concept involves more than facilitating exchange with customers; it is a philosophical point of view that has basis the formation of a partnership between buyer and seller for the purpose of achieving the organization goals of both Too often, Industrial Organizations, tend to be technically oriented, much more interested in a particular product and its technical development. 4. For marketing effectiveness, the product should always be regarded as a variable and should be viewed from the perspective of the customer. 8 0 obj
endstream
Decision can be taken by junior executive in the purchase dept. JFIF ` ` C 3. Learn how we and our ad partner Google, collect and use data. Coalition formation among certain buying center members. Industrial Marketing: (Business Marketing): Consists of all activities involved in the marketing of products and services to organizations ( i.e. Personal Objectives:- Industrial Buyers try to achieve both organizational purchase objectives and personal objectives. Consumer Markets. There are six roles of buying center members. INDUSTRIAL BUYING PROCESS Purchasing Objective: Generally, the Purchase / Materials Management is defined as buying the right quantity, at the right price, for delivery at the right time and place It is the Managements job to define what is right for each dimension. Write a brief note on Classification of Industrial Products and services. 1. Power in conflict resolution. All rights reserved. DIFFERENCES BETWEEN INDUSTRIAL AND CONSUMER MARKETING Industrial Markets.
Buying is an organizational-decision making process. Exchange of Information between Specialists and Representatives from each functional area, from both seller and buyer organizations. Involvement of various functional areas in both buyer and seller firms. 4. Product Quality 3. CROSS-ELASTICITY OF DEMAND Cross elasticity of demand is the responsiveness of the sales of one product to a price change in another product. Enumerate the differences between B2B & B2C Marketing. 0000005298 00000 n Selection of an order routine. In Contrast, in Consumer Marketing: 1. $E(9y3OUqVUqT=S2Q). The most difficult buying situation occurs for a new task in buy phases of problem recognition, and determination of product characteristics and specification. The B2B marketing process is much more involved and longer. Geographically disbursed and mass markets. It is important for a B2B company to focus on building relationships, which also spread a positive word of mouth B2B companies are focused on educating various companies as they sell complicated products Marketing techniques such as newsletters, and product or service coverage & customized & direct selling is used Exchange transactions in the Industrial Market consist of: 1) Product or Service Exchange.
Emphasis on personal selling. <> v@~5&n5#+[R;CnBgT5xea#5Cn8M4:T ap&Dhf]BIf`TABBNpd~y@.&$k3+\OZDN%pQqZ6,3raZsouuzp7-. 3. The Webster and Wind Model of Organizational Buying Behavior. Competing Let us do it my way. Review Questions: 1. Many aspects of an agreement between buyers and sellers in the Industrial Market are not fully formalized or based on legal criteria until the end of the transaction period. xakU\;+ON<9u\$&'S=e>5)pz 0^#@Y`'W H6H|$vDLlpq|' n=XERrsq3tRqGRD4ZDtYiO jiV SNgB{A-ne% F{lH^5BzZ3W[?/3W=DS A^z" Development of specifications or description of needed product. Delivery / Availability:One of the prime objectives is to ensure that purchased goods and services are available or delivered as and when & where required, If not work will come to a grinding halt. 0000062132 00000 n A Material Handling company, for example, opened its own branches with warehousing facilities, in place of its agents, in order to improve customer service. b) The stimulation of demand. Channels are more direct and fewer intermediaries/middlemen. 0000002153 00000 n Competitive bidding and negotiated prices. Sometimes outside Consultants or Experts play the role of influencers by drawing specifications of products or services. <> xYn7}wA ]QZBv` pu#;, X{8:rg?7Kp/,/Of]<<>,_?~dG'h>>BxL?`J(.5sC|4 ?Q;ZLu#CXvzq*Nd 98xc(YRK&ajvtpm Lm8U:c2`%R??ud3#5=wz\;F]Aa4.[=2HA There are eight phases (or stages) in the buying decision process, indicating the logical sequence of activities 1. All eight phases of industrial buying process are applicable to a new buying solution however, in case of modified re buy and straight re buy situations, only some of the buy phases are applicable. "FV %H"Hr ![EE1PL* rP+PPT/j5&uVhWt :G+MvY c0 L& 9cX& jp BN*hAKVPc(xt`t^l zM"C1J0d4q^gs(GWED=pD"r^t@db$zU$DZXUD_y]XG/;W|K`.a#_ 25N_(!Da#ZS-0a2pw[%{0J'zw >c endstream endobj 203 0 obj 830 endobj 187 0 obj << /Type /Page /Parent 167 0 R /Resources 188 0 R /Contents 192 0 R /MediaBox [ 0 0 595 842 ] /CropBox [ 0 0 595 842 ] /Rotate 0 >> endobj 188 0 obj << /ProcSet [ /PDF /Text ] /Font << /TT2 190 0 R /TT4 194 0 R /TT6 196 0 R >> /ExtGState << /GS1 198 0 R >> /ColorSpace << /Cs6 189 0 R >> >> endobj 189 0 obj [ /ICCBased 197 0 R ] endobj 190 0 obj << /Type /Font /Subtype /TrueType /FirstChar 32 /LastChar 150 /Widths [ 250 0 408 0 0 833 778 180 333 333 500 0 250 333 250 278 500 500 500 500 500 500 500 500 500 500 278 278 0 0 0 444 0 722 667 667 722 611 556 722 722 333 389 722 611 889 722 722 556 722 667 556 611 722 722 944 0 722 0 0 0 0 0 500 0 444 500 444 500 444 333 500 500 278 278 500 278 778 500 500 500 500 333 389 278 500 500 722 500 500 444 0 0 0 0 0 0 0 0 0 0 1000 0 0 0 0 0 0 0 0 0 0 0 0 333 444 444 0 500 ] /Encoding /WinAnsiEncoding /BaseFont /NPKLOA+TimesNewRoman /FontDescriptor 191 0 R >> endobj 191 0 obj << /Type /FontDescriptor /Ascent 891 /CapHeight 656 /Descent -216 /Flags 34 /FontBBox [ -568 -307 2028 1007 ] /FontName /NPKLOA+TimesNewRoman /ItalicAngle 0 /StemV 94 /XHeight 0 /FontFile2 199 0 R >> endobj 192 0 obj << /Length 687 /Filter /FlateDecode >> stream Address: Copyright 2022 PDFCOFFEE.COM. 0000002112 00000 n They may be one or more Individuals involved in the buying decisions. List Prices or maximum retail prices or MRP. 2. HS]HSa~9z:s;sMrf*uib:IjYA]im4$*S.F&aq2$@/)q]q R C2d8{]~##h{c_b IKe9LNJq|B3c!wJx,iu&i5M~W^k=7uCAw&dvY1 Yg'zV4$IWGTN){I m2KUmyHhKUG PZ<0a]HiC4KmPR }9>Z`m -cxaO*NRt1$q".P!Q\9hqQbN56X+7i f0x6YKtTU@UnU=mw0t The Relationships between the seller and buyers are highly valued and over a period of time they become stable because of a high degree of Interdependence. <> Legitimate power. $.' Straight Re buy situation are handled in a routine matter. THE INDUSTRIAL MARKETING CONCEPT The marketing concept holds that the key task of the organization is to define the needs of a target market and adopt the organization products or service to satisfy those needs more effectively than its competitors. Search for and qualifications of potential suppliers. Supplier Relationship:- To develop a good long term Supplier / Vendor Relationship and to develop new sources of supply. INDUSTRIAL OR BUSINESS MARKETING Briefly Industrial or Business Marketing can be defined as human activity directed towards satisfying wants and needs of organizations through exchange processes. While the nature of markets differs, the marketing concept is applicable and important in both the Industrial and Consumer markets. 3) Financial Exchanges may involve such considerations as the granting of credit or the need to exchange money from one currency into another when dealing with foreign buyers. 6. 0000002977 00000 n 4. B2B Marketing NATURE OF INDUSTRIAL MARKETING. Product Quality: The Product Quality should be consistent with the Specifications and use of the Product. On the other hand, during the period of prosperity there is an increased production and sales of consumer goods, which results in an increased demand for industrial goods. 6. 1 0 obj endobj The Jagdish Sheth Model of Industrial Buyer Behavior This model emphasizes the joint decision making by two or more individuals, and the psychological aspects of the decision making individuals in the industrial buying behavior. This would help an Industrial Firm to take strategic decisions on diversifying through Backward, Forward or Horizontal Integration, or by expanding its markets from domestic to international markets. Elaborate. The goal of B2B marketing is to convert prospects into customers. It is important to ensure consistency in Product Quality to reduce the cost of inspection, interruptions in production process due to rejections and replacement of rejected material. What do you understand by Buying centre Roles and six roles of buying center members? 7 0 obj Performance feedback and post-purchase evaluation. 0000001947 00000 n Customer benefits and need satisfaction, rather than physical product should be the centre of attention Customer satisfaction should be paramount in all corporate decision making. 0000007976 00000 n :]PG`ZF R4kMV Technical expertise required. ):N- Anc4G@:51Koes7,Rl5?2D ?22t=S)SlcrOn/{VY[}TX=3Po Zk=]Nj=hXi\p5ti&[>g9QhRHJg_iBr|c:p2HIxQWNE'WQqc#8M'SBh6~9^q,mux(f}jV6Xk0K~_0i%. Basic Definitions: The Relationship between a Buyer and a Seller is Non-Personal. 6. stream During periods of recession or reduced consumer demand, industrial firms reduce their inventories or reduce the production or do both. Np%p `a!2D4! Lowest Price :Subject to availability in time, with good and consistent quality, buyers would like to buy at the lowest price. Basic Definitions: Marketing: It is human activity directed at satisfying human needs and wants through exchange process. DECIDERS:Actual buying decisions are made by the deciders. endobj Hence, product Quality is considered as one of the important objectives of purchasing. Obtaining and analyzing supplier proposals. 9 0 obj Horizontal Integration: A company seeks ownership or control of some of its competitors. INFLUENCERS:- They influence the buying decision. Thus inter-organizational contacts take place and interpersonal relationships are developed.
<>>> endobj It is derived from the ultimate Demand for Consumer Goods and Service. PBs,;EJ1^>/6NMKmCojRX"im%Dbd#/5]szy8#E *Gc%m[hmt3,%ZZ)nN]; UkO%}dW}U+{1~8 m#sy&&s i4qc"M)qAL#]>jL ^ubk-[SZ GRlXbpA=v
Determination of the application or characteristics and quantity of needed product. Service, delivery and availability are somewhat important. 5. The Demand for Industrial Products and Service Does Not Exist By itself. 3) The Buying Decisions are based on Physiological, Social and Psychological needs of a Family or Household. 1. 2. DERIVED DEMAND:Industrial Customers buy Goods And Services for Use in Producing other goods and services. For instance, A Company reduced competition by acquiring the management control of some of its competing firms. Acceptable Payments and other Commercial Terms 5.
3. Industrial Demand is, therefore, called Derived Demand 1. Before identifying the individuals and groups involved in the buying decision process, it is important to understand the roles of buying-center members. 4) Social Exchange is important in such areas as reducing uncertainty between buyer and seller, avoiding short term difficulties and maintaining the exchange relationship over a lengthy transaction period. 185 0 obj << /Linearized 1 /O 187 /H [ 841 948 ] /L 365859 /E 92786 /N 48 /T 362040 >> endobj xref 185 19 0000000016 00000 n