Bài giảng Marketing Công nghiệp (B2B Marketing) - Chapter 3: Organizational Buying & Buying Behavior - ĐHKT TP.HCM

1/2/2017 1 Chapter 3 Organizational Buying & Buying Behavior www.dinhtienminh.net DINH Tien Minh (Ph.D.) University of Economics HCMC Objectives 2 Understand organizational buying objectives. Gain knowledge organisational buying process including the types of buying situation. Identify the members of decision making unit. Understand some of models of organizational buying behavior. Outline 3.1 Purchasing Objectives 3.2 Organisational Buying Process 3.3 Types of Purchase or Buying Situations 3.4 The Buying Center 3 3.5 Models of Organisational Buying Behavior 3.6 Questions and Homework 1/2/2017 2 4 3.1. Purchasing Objectives Buying the right item in the right quantity, at the right price, for delivery at the right time and place. What’s right for each dimension?  Delivery/ Availability  Product quality  Lowest price  Services  Supplier relationship 5 3.1. Purchasing Objectives (cont’) © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The Firm and Personal objectives. More complex than the consumer decision process and takes place within formal organization’s budget, cost, and profit considerations. 3.2. Organisational Buying Process 6 Source: Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3rd edition. 6 1/2/2017 3 Stage 1: Anticipate a problem/need and a general solution  Need to provide employees with a good cup of coffee to enhance productivity. Stage 2: Determine the characteristics and quantity of a needed good or service  Offering a coffee system that brews one cup of coffee at a time according to each employee’s preference. 7 3.2. Organisational Buying Process (cont’) 7 Stage 3: Describe characteristics and the quantity of a needed good or service  Firms need a simple system for brewing a good cup of coffee; quantity requirements are easily correlated to the number of coffee drinkers. Stage 4: Search for and qualify potential sources  Choice of supplier. 8 3.2. Organisational Buying Process (cont’) 8 Stage 5: Acquire and Analyze proposals  May involve competitive bidding, especially if the buyer is the government or a public agency. Stage 6: Evaluate proposals and Select suppliers  Buyers choose proposal best suited to their needs.  Final choice may involve trade-offs between feature such as price, reliability, quality, and order accuracy. 9 3.2. Organisational Buying Process (cont’) 9 1/2/2017 4 10 Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3rd edition, p42. Method: A Supplier Evaluation System 3.2. Organisational Buying Process (cont’) Attribute (or Factor) Weight (Important) Supplier Performance* Supplier Rating (or Score) Quality 30 0.8 30 x 0.8 = 24 Delivery 25 0.4 25 x 0.4 = 10 Price 15 0.6 15 x 0.6 = 09 Service 20 0.6 20 x 0.6 = 12 Flexibility 10 0.2 10 x 0.2 = 02 Total 100 57 * The information on the existing supplier’s performance is obtained from departments. 10 11 Method 2: Use the concept of Balanced Scorecard (BSC) to evaluate Suppliers’performance Translate a company’s mission and strategy into a set of performance measurements, in which the Internal-business-process is relevant for evaluating supplier performance. Find additional measurements (timely delivery) that create superior value beside the traditional factors (price, quality). 3.2. Organisational Buying Process (cont’) 11 12 The Balanced Scorecard (BSC) Framework 3.2. Organisational Buying Process (cont’) Robert S. Kaplan & David P. Norton, The Balanced Scorecard, Harvard Business School Press, 1996. Financial To success financially, Company should focus on financial objectives that will satisfy shareholders. Customer Which customer value company should focus on, to achieve its mission Internal-Business- Process To satisfy shareholders and customers, what business process company must excel at? Mission & Strategy Learning and Growth How can company improve and change to achieve its mission 12 1/2/2017 5 13 Internal-Business-Process 3.2. Organisational Buying Process (cont’) Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3rd edition, p43. Identify Customer needs and Market Design, Develop Product/ Service Make/ Buy Product/ Service Market Product/ Service Satisfy Customer Needs Innovation Processes Operations Processes 13 Stage 7: Select an order routine  Buyer and Vendor work out best way to process future purchases. Stage 8: Obtain feedback and Evaluate performance  Buyers measure vendors’performance.  Larger firms are more likely to use formal evaluation procedures.  Some firms rely on outside organizations to gather quality feedback and summarize results. 14 3.2. Organisational Buying Process (cont’) 14 18 3.3. Types of Purchase or Buying Situations Source: Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3rd edition. 18 1/2/2017 6 19 Source: Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3rd edition. 3.3. Types of Purchase or Buying Situations 19 Classifying buying situations: The buying behavior involves degree of effort involved in the decision and the levels within the organization in which these decisions are made. 1. Straight Rebuying  A recurring purchase decision in which a customer reorders a product that has satisfied needs in the past.  Marketers maintaining good relationships with customers can go a long way toward ensuring straight re-buy (High- quality products, superior service, prompt delivery). 20 3.3. Types of Purchase or Buying Situations 20 2. Modified Rebuying  May occur if supplier has let a rebuy circumstance deteriorate because of poor service or delivery performance. 3. New-Task Buying  First-time or unique purchase situations that require considerable effort by the decision makers.  Often requires purchaser to consider alternative offerings and vendors. 21 3.3. Types of Purchase or Buying Situations 21 1/2/2017 7 22 The Buygrid Framework for Organisational Buying Situations 3.3. Types of Purchase or Buying Situations Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3rd edition, p46. Buy phases (Phases in Buying Process) Buying Situations New Task Modified Rebuy Straight Rebuy 1. Problem recognition Yes Maybe No 2. Characteristics and quantity of needed item Yes Maybe No 3. Description or specification of needed item Yes Maybe No 4. Search for and qualifications of potential suppliers Yes Yes No 5. Obtaining and analyzing supplier proposals Yes Yes Maybe 6. Evaluation of proposals and selection of suppliers Yes Yes No 7. Selection of an order routine Yes Yes Maybe 8. Performance feedback and evaluation Yes Yes Yes 22 3.4. The Buying Center 2323 The organizational buying process is typically influenced by many individuals. The degree of involvement of individuals varies for different buying situations. 24 3.4. The Buying Center (cont’) 24 1/2/2017 8 If the industrial salespeople can answer the following questions correctly, he has a high probability of getting business:  What type of buying situation the customer is in?  Which individuals are involved in the purchase decision process and who are the key influencers?  What criteria would be used by the decision- making-unit, and if this is not decided, then what criteria are important to each member? 25 3.4. The Buying Center (cont’) 25 3.5. Models of Organisational Buying Behavior 26 Nguồn: Adapted from F.E. Webster, Jr and Y. Wind, “AGeneral Model of Organisational Buying Behaviour”, Journal of Marketing, 36, 2 (April, 1972), 12-19. 26 27 Nguồn: Adapted from Jagdish N. Sheth, “A Model of Industrial Buying Behaviour”, Journal of Marketing, 37, Oct, 1973, 50-56. 3.5. Models of Organisational Buying Behavior 27 1/2/2017 9 28 Nguồn: Jean Mary Choffray & Gary L. Lilien, “Assessimg response to Industrial Marketing strategy”, Journal of Marketing, 42, April 1978, 22. 3.5. Models of Organisational Buying Behavior 28 3.6. Questions and Homework 29 1. At what phase(s) of the industrial buying process the business marketer should get involved and why? 2. Is the organizational buying process for services the same as that for physical products? Explain. 3. Describe any one of the techniques used by customer organizations for evaluating performances of suppliers? Why is it importance for the sales person or the supplier firm to understand clearly the supplier evaluation system followed by the customer organization? 29 www.dinhtienminh.net