Genesis Management Services Pty Ltd gmservices.com.au
genesis
SERVICES
EXPERIENCE
ORGANISATIONAL MARKETS & BUYING BEHAVIOUR
1. Introduction
organisational buying is a vast market
a decision-making process.
2. Producer Market
e.g. agriculture, mining, manufacturing, construction, banking
sales to industrial buyers is bigger than to consumer buyers
w fewer, larger, geographically concentrated, inelastic demand, more volatile demand, trained professional buyers.
re-order, modified re-order, new product/service.
who makes the decision?
influences on buyers
environment (demand, economy, cost of money, competition, supply conditions, etc.)
organisation (objectives, policies, structure, systems, trends to professionalism, centralisation, longer term contracts, performance evaluation).
inter-personal (e.g. authority, status, empathy, persuasiveness)
individual (e.g. age, income, education, job position, personality, risk attitudes)
8 stages for procurement process:
Problem recognition
Need description
Product specification
Supplier search
Qualified supplier submissions
Selection
Order
Performance review
3. Reseller Market
purpose is to resell or rent (incl. wholesalers & retailers)
reseller buying decisions
3 types of decision (variety, vendors & prices/terms)
3 buying situations (new item/first home, old item (choose best supplier, old item/best supplier/better terms)
who buys? individual or committee?
major influences? same as for producer marketing to industrial buyer.
4. Government Market
nearly one-third of all purchases from Federal, State, Local Government
public accountability
buying process usually competitive tendering
most companies serving the government have not been marketing-oriented.