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Bài giảng Marketing công nghiệp - Chapter 3: Organizational buying & Buying behavior cung cấp cho người học các kiến thức: Purchasing objectives, organisational buying process, types of purchase or buying situations, the buying center, models of organisational buying behavior.
1/2/2017 Chapter Organizational Buying & Buying Behavior www.dinhtienminh.net DINH Tien Minh (Ph.D.) University of Economics HCMC Objectives 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 3.5 Models of Organisational Buying Behavior 3.6 Questions and Homework 1/2/2017 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 3.1 Purchasing Objectives (cont’) The Firm and Personal objectives © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 3.2 Organisational Buying Process More complex than the consumer decision process and takes place within formal organization’s budget, cost, and profit considerations Source: Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3rd edition 6 1/2/2017 3.2 Organisational Buying Process (cont’) 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’) 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’) 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 1/2/2017 3.2 Organisational Buying Process (cont’) Method: A Supplier Evaluation System Attribute (or Factor) Quality Delivery Price Service Flexibility Total Weight (Important) 30 25 15 20 10 100 Supplier Performance* 0.8 0.4 0.6 0.6 0.2 Supplier Rating (or Score) 30 x 0.8 = 24 25 x 0.4 = 10 15 x 0.6 = 09 20 x 0.6 = 12 10 x 0.2 = 02 57 * The information on the existing supplier’s performance is obtained from departments Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3rd edition, p42 1010 3.2 Organisational Buying Process (cont’) 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) 1111 3.2 Organisational Buying Process (cont’) The Balanced Scorecard (BSC) Framework 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 Mission & Strategy Internal-BusinessProcess To satisfy shareholders and customers, what business process company must excel at? Learning and Growth How can company improve and change to achieve its mission Robert S Kaplan & David P Norton, The Balanced Scorecard, Harvard Business School Press, 1996 1212 1/2/2017 3.2 Organisational Buying Process (cont’) Internal-Business-Process Innovation Processes Identify Customer needs and Market Design, Develop Product/ Service Operations Processes Make/ Buy Product/ Service Market Product/ Service Satisfy Customer Needs Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3rd edition, p43 1313 3.2 Organisational Buying Process (cont’) 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 1414 3.3 Types of Purchase or Buying Situations Source: Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3rd edition 1818 1/2/2017 3.3 Types of Purchase or Buying Situations Source: Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3rd edition 1919 3.3 Types of Purchase or Buying Situations 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 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 (Highquality products, superior service, prompt delivery) 2020 3.3 Types of Purchase or Buying Situations Modified Rebuying May occur if supplier has let a rebuy circumstance deteriorate because of poor service or delivery performance 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 2121 1/2/2017 3.3 Types of Purchase or Buying Situations The Buygrid Framework for Organisational Buying Situations Buy phases (Phases in Buying Process) Problem recognition Characteristics and quantity of needed item Description or specification of needed item Search for and qualifications of potential suppliers Obtaining and analyzing supplier proposals Evaluation of proposals and selection of suppliers New Task Yes Yes Yes Yes Yes Yes Selection of an order routine Performance feedback and evaluation Yes Yes Buying Situations Modified Straight Rebuy Rebuy Maybe No Maybe No Maybe No Yes No Yes Maybe Yes No Yes Yes Maybe Yes Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3rd edition, p46 2222 3.4 The Buying Center 2323 3.4 The Buying Center (cont’) The organizational buying process is typically influenced by many individuals The degree of involvement of individuals varies for different buying situations 2424 1/2/2017 3.4 The Buying Center (cont’) 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 decisionmaking-unit, and if this is not decided, then what criteria are important to each member? 2525 3.5 Models of Organisational Buying Behavior Nguồn: Adapted from F.E Webster, Jr and Y Wind, “A General Model of Organisational Buying Behaviour”, Journal of Marketing, 36, (April, 1972), 12-19 2626 3.5 Models of Organisational Buying Behavior Nguồn: Adapted from Jagdish N Sheth, “A Model of Industrial Buying Behaviour”, Journal of Marketing, 37, Oct, 1973, 50-56 2727 1/2/2017 3.5 Models of Organisational Buying Behavior Nguồn: Jean Mary Choffray & Gary L Lilien, “Assessimg response to Industrial Marketing strategy”, Journal of Marketing, 42, April 1978, 22 2828 3.6 Questions and Homework At what phase(s) of the industrial buying process the business marketer should get involved and why? Is the organizational buying process for services the same as that for physical products? Explain 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? 2929 www.dinhtienminh.net ... Product/ Service Satisfy Customer Needs Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3rd edition, p 43 131 3 3. 2 Organisational Buying Process (cont’) Stage 7: Select an order routine... and summarize results 1414 3. 3 Types of Purchase or Buying Situations Source: Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3rd edition 1818 1/2/2017 3. 3 Types of Purchase or Buying... Yes No Yes Yes Maybe Yes Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3rd edition, p46 2222 3. 4 The Buying Center 232 3 3. 4 The Buying Center (cont’) The organizational buying process