SlideShare a Scribd company logo
1 of 62
Chapter 2
Perspectives
on the
Organizational
Buyer
Chapter TopicsChapter Topics
Inside and outside forces influence organizational
buying. In this chapter you’ll learn about:
1.The organizational buying process
2.The four main factors that impact organizational
buying decisions
3.A model of organizational buying behavior
4.How knowledge of organizational buying
enables marketers to make more informed
decisions on product design, pricing and
promotion
22
Understanding the DynamicsUnderstanding the Dynamics
of Organizational Buyingof Organizational Buying
Market-driven firms sense market trends and workMarket-driven firms sense market trends and work
closely with their customers and vendors. This is crucialclosely with their customers and vendors. This is crucial
to:to:
Identify profitable market segmentsIdentify profitable market segments
Locate buying influences within segmentsLocate buying influences within segments
Reach organizational buyers efficiently and effectivelyReach organizational buyers efficiently and effectively
with an offerwith an offer
Each decision goes through various steps. Skipping aEach decision goes through various steps. Skipping a
step can be essential to the decision-making process.step can be essential to the decision-making process.
Buying as a Process
Buying is a process, not an event
There are various points in the process
that are referred to as “Critical Decision
Points” and “Evolving Information
Requirements”
It starts with “Problem Recognition”
Organizational
Buying
Process
1. Problem
Recognition
2. General
Description
of Need
3. Product
Specifications
4. Supplier
Search
5. Acquisition
and Analysis
of Proposals
6. Supplier
Selection
7. Selection
of
Order Routine
8. Performance
Review
Organizational Buying Process
1. Problem Recognition1. Problem Recognition
Before anything is bought, most buyersBefore anything is bought, most buyers
need to be made aware of a problem.need to be made aware of a problem.
1. Problem Recognition1. Problem Recognition
Internally:Internally:
A machine breaks downA machine breaks down
Someone needs to order a productSomeone needs to order a product
Someone recognizes an opportunity thatSomeone recognizes an opportunity that
can be captured by acquiring the productcan be captured by acquiring the product
1. Problem Recognition1. Problem Recognition
Externally:Externally:
More often than not, it is the salesperson whoMore often than not, it is the salesperson who
precipitates the need for a new productprecipitates the need for a new product
Advertising also can influence purchasingAdvertising also can influence purchasing
Many organizations use the Push/PullMany organizations use the Push/Pull
StrategyStrategy
2. General Description of Need2. General Description of Need
Once a need is recognized, the purchasing department
works with the buying group to define what is needed by
asking:
What is the extent of the problem?
What alternatives can solve the problem?
Where can the solution be purchased?
Each small decision ultimately helps define the product
specifications.
Sometimes the supplier is involved if the supplier
influences the sale (i.e., the supplier makes the buyer
aware of the need).
3. Product Specifications3. Product Specifications
Many times the question boils down to:Many times the question boils down to:
1.1. Is it a new task buy?Is it a new task buy?
2.2. Is it a straight rebuy?Is it a straight rebuy?
3.3. Is it a modified rebuy?Is it a modified rebuy?
Buyers try to be objective and consider many ideas.Buyers try to be objective and consider many ideas.
Professional sellers try to influence this decision asProfessional sellers try to influence this decision as
early as possible in the buying process—if they can!early as possible in the buying process—if they can!
3. Product Specifications3. Product Specifications
This is an important because it oftenThis is an important because it often
determines how the contract is structureddetermines how the contract is structured
and the specific wording that it uses.and the specific wording that it uses.
4. Supplier Search4. Supplier Search
Who will be the supplier?Who will be the supplier?
The creating influencer has a lot ofThe creating influencer has a lot of
say about the choice of supplier. If asay about the choice of supplier. If a
salesperson creates the need, oftensalesperson creates the need, often
the specs are written so that only thethe specs are written so that only the
salesperson’s organization is able tosalesperson’s organization is able to
fulfill the contract.fulfill the contract.
In established businesses, oftenIn established businesses, often
only preferred vendors areonly preferred vendors are
considered.considered.
5. Acquisition and Analysis of5. Acquisition and Analysis of
ProposalsProposals
This step occurs only when the buying organization lacksThis step occurs only when the buying organization lacks
adequate information to make a decision.adequate information to make a decision.
Proposals are presented in detail often by a teamProposals are presented in detail often by a team
engineers, users and purchasing agents. Successfulengineers, users and purchasing agents. Successful
proposals determine the supplier.proposals determine the supplier.
Many times, this step is perfunctory. The buyer mayMany times, this step is perfunctory. The buyer may
have already determined the preferred vendor, buthave already determined the preferred vendor, but
legally it may be necessary to seek other vendorlegally it may be necessary to seek other vendor
proposals to attain government contracts.proposals to attain government contracts.
6. Supplier Selection6. Supplier Selection
At this point, negotiation includes not only monies,At this point, negotiation includes not only monies,
but also:but also:
1.1.QuantitiesQuantities
2.2.Delivery timesDelivery times
3.3.Level of serviceLevel of service
4.4.WarrantiesWarranties
5.5.Payment schedulesPayment schedules
6.6.And a host of final details that determine selectionAnd a host of final details that determine selection
7. Selection of Order Routine7. Selection of Order Routine
Once the supplier is selected, the orderOnce the supplier is selected, the order
routines are establishedroutines are established
8. Performance Review8. Performance Review
After receipt of the product or service, aAfter receipt of the product or service, a
performance review asks:performance review asks:
1.1.Did the supplier meet delivery time?Did the supplier meet delivery time?
2.2.Did the product meet the specs?Did the product meet the specs?
3.3.Does the contract have to be modified?Does the contract have to be modified?
4.4.Did the vendor live up to expectations?Did the vendor live up to expectations?
Buying ProcessBuying Process
Stages in the buying process are not asStages in the buying process are not as
sequential as suggested by the model.sequential as suggested by the model.
Sometimes steps are skipped. For example, onSometimes steps are skipped. For example, on
straight rebuys, buyers choose to purchasestraight rebuys, buyers choose to purchase
almost immediately.almost immediately.
However, the model represents importantHowever, the model represents important
aspects of how companies buy and evaluateaspects of how companies buy and evaluate
business purchases.business purchases.
Buying ProcessBuying Process
There are other events that influence theThere are other events that influence the
buying process, most notably:buying process, most notably:
1.1.Economic conditionsEconomic conditions
2.2.CompetitionCompetition
3.3.Basic shifts in the organizationalBasic shifts in the organizational
objectivesobjectives
4.The buying situation
Business Strategy ConsiderationsBusiness Strategy Considerations
The business marketer must always try toThe business marketer must always try to
understand the sale from the buyer’s perspectiveunderstand the sale from the buyer’s perspective
and do everything to make it easier for the buyerand do everything to make it easier for the buyer
to buy.to buy.
Business Strategy ConsiderationsBusiness Strategy Considerations
Marketers needs to understand:Marketers needs to understand:
1.1. Who are the decision makers?Who are the decision makers?
2.2. What are their problem(s)?What are their problem(s)?
3.3. What are their purchasing patterns?What are their purchasing patterns?
4.4. What is the importance of their purchase?What is the importance of their purchase?
5.5. What is the timing of the purchase?What is the timing of the purchase?
Forces Influencing Organizational BuyingForces Influencing Organizational Buying
BehaviorBehavior
Environmental
Forces
Organizational
Forces
Group
Forces
Individual
Forces
Organizational
Buying
Behavior
• Economic outlook:
domestic & global
• Pace of technological
change
• Global trade relations
• Goals, objectives and
strategies
• Organizational position
of purchasing
• Roles, relative
influence and patterns
of interaction of buying
decision participants
•Job function, past
experience, and buying
motives of individual
decision participants
A projected change in
business conditions
can alter buying plans
drastically.
Environmental Forces - EconomicEnvironmental Forces - Economic
InfluencesInfluences
Changes in the environment such as businessChanges in the environment such as business
conditions, technological advances or newconditions, technological advances or new
legislation can affect buying plans.legislation can affect buying plans.
Since much of business is driven by derivedSince much of business is driven by derived
demand, business marketers must be sensitivedemand, business marketers must be sensitive
to changes in the consumer market.to changes in the consumer market.
Also, the economy can determine a company’sAlso, the economy can determine a company’s
ability or willingness to buy. If the economy isability or willingness to buy. If the economy is
bad, companies often put off purchasing untilbad, companies often put off purchasing until
they see a change.they see a change.
Economic InfluencesEconomic Influences
Not all companies are affected equally. For
example, high interest rates may affect housing
starts but may not affect food products, medical
or transportation services.
Finally, there is an affect from foreign
competitors such as China and India. Both have
strong labor saving costs as a competitive
advantage.
Technological InfluencesTechnological Influences
Technology is changing so quickly that yesterday’sTechnology is changing so quickly that yesterday’s
technological advancement is today’s electronictechnological advancement is today’s electronic
commodity.commodity.
Example: ComputersExample: Computers
However, all companies need to stay alert to theseHowever, all companies need to stay alert to these
changes. For example, Blockbuster is feeling the pinchchanges. For example, Blockbuster is feeling the pinch
of Netflix, Internet and satellite movies-on-demand.of Netflix, Internet and satellite movies-on-demand.
Technological change—especially from the Internet—isTechnological change—especially from the Internet—is
drastically changing the way companies do business.drastically changing the way companies do business.
Technological ChangeTechnological Change
The Internet has leveled the playing field, allowing
competitors the opportunity to compete in the world’s
most technological advanced countries.
It affects not only entire companies (the printing industry
is struggling due to digital printing and electronic
communication), but also individual careers (an “A”
programmer in India can be purchased for $2-4/hour).
Organizational Forces &Organizational Forces &
Growing Influence of PurchasingGrowing Influence of Purchasing
As manufacturing has become less important,As manufacturing has become less important,
purchasing and procurement have become morepurchasing and procurement have become more
important.important.
Companies are outsourcing many activitiesCompanies are outsourcing many activities
such as manufacturing, marketing, accounting,such as manufacturing, marketing, accounting,
etc., yet procurement remains a strong influenceetc., yet procurement remains a strong influence
resulting in a shift to more professionalresulting in a shift to more professional
procurement positions.procurement positions.
Strategic Priorities inStrategic Priorities in
PurchasingPurchasing
As the purchasing profession grows, so do itsAs the purchasing profession grows, so do its
goals and priorities.goals and priorities.
Purchasers are more ambitious, resulting in a morePurchasers are more ambitious, resulting in a more
competitive environment. An effective marketingcompetitive environment. An effective marketing
strategy develops stronger and deeperstrategy develops stronger and deeper
relationships with purchasers.relationships with purchasers.
This is the impetus for Relationship Marketing.This is the impetus for Relationship Marketing.
Strategic Priorities in PurchasingStrategic Priorities in Purchasing
Aligning Purchasing
with Strategy, Not
Just Buyers
Shift from administrative role to
value-creating function that serves
internal stakeholders and provides
competitive edge in market.
Exploring New
Value Frontiers: It’s
Not Just About Price
Focus on suppliers’ capabilities,
emphasizing business outcomes,
total ownership costs, and
potential for long-term value
creation.
Strategic Priorities in PurchasingStrategic Priorities in Purchasing
• Putting SuppliersPutting Suppliers
Inside:Inside: The Best ValueThe Best Value
Chain WinsChain Wins
• Develop fewer and deeperDevelop fewer and deeper
relationships with strategicrelationships with strategic
suppliers and involve them insuppliers and involve them in
decision- making processes,decision- making processes,
ranging from new productranging from new product
development to cost-reductiondevelopment to cost-reduction
initiatives.initiatives.
• Pursuing Low-Cost
Sources: A World Worth
Exploring
Overcome hurdles imposed
by geographical differences
and seek out cost-effective
suppliers around globe.
Marketing StrategicMarketing Strategic
ConsiderationsConsiderations
As Purchasers develop their strategic roles, MarketersAs Purchasers develop their strategic roles, Marketers
respond by developing strategic alliances to become arespond by developing strategic alliances to become a
part of their business.part of their business.
Buyers and Sellers know that “the best value supplyBuyers and Sellers know that “the best value supply
chain wins” the customer…and the profits.chain wins” the customer…and the profits.
The result is closer relationships with carefully chosenThe result is closer relationships with carefully chosen
suppliers who can align their activities with customersuppliers who can align their activities with customer
needs.needs.
Example: At this time in history, Walmart is one of theExample: At this time in history, Walmart is one of the
best at accomplishing this activity!best at accomplishing this activity!
3131
Procurement Manager’s Toolkit
Total Cost of Ownership
TCO considers the full range of
costs associated with the purchase
and use of a product or service over its
complete life cycle.
3232
1. Acquisition costs: selling price and transportation
costs & administrative costs of evaluating suppliers,
expediting orders, and correcting errors in shipments
or delivery.
2. Possession costs: include financing, storage,
nspection, taxes, insurance, and other internal handling
costs.
3. Usage costs: are those associated with ongoing use
of the purchased product such as installation, employee
training, user labor, and field repair, as well as
product replacement and disposal costs.
TCO
Value-based Selling ToolsValue-based Selling Tools
Astute business marketers can pursueAstute business marketers can pursue
value-based strategies that providevalue-based strategies that provide
customers with a lower cost-in-usecustomers with a lower cost-in-use
solution.solution.
Value-based strategies seek to move theValue-based strategies seek to move the
selling proposition from one that centersselling proposition from one that centers
on current prices and individualon current prices and individual
transactions to a longer-term relationshiptransactions to a longer-term relationship
built on value and lower total cost-in-use.built on value and lower total cost-in-use.
3333
Segmenting the BuySegmenting the Buy
Various categories of purchases areVarious categories of purchases are
segmented on the basis of procurementsegmented on the basis of procurement
complexity and the nature of the effect oncomplexity and the nature of the effect on
corporate performancecorporate performance
Use a segmentation approach to isolateUse a segmentation approach to isolate
those purchase categories that have thethose purchase categories that have the
greatest effect on corporate revenuesgreatest effect on corporate revenues
3434
E-ProcurementE-Procurement
Purchasing managers use the
Internet to find new suppliers,
communicate with current
suppliers, or place an order.
E-procurement cut purchasing
cycle time in half, reduced
material costs by 14 percent
and purchasing administrative
costs by 60 percent, and
enhance the ability of
procurement units to identify
new suppliers on a global scale.
3535
Reverse AuctionsReverse Auctions
Involves one buyer who invites bids fromInvolves one buyer who invites bids from
several prequalified suppliers who face off inseveral prequalified suppliers who face off in
a dynamic, real-time, competitive biddinga dynamic, real-time, competitive bidding
process.process.
Reverse auctions are best suited forReverse auctions are best suited for
commodity-type items such as purchasingcommodity-type items such as purchasing
materials, diesel fuel, metal parts, chemicals,materials, diesel fuel, metal parts, chemicals,
and many raw materialsand many raw materials
3636
A Strategic Approach toA Strategic Approach to
Reverse AuctionsReverse Auctions
““Preempt the auction: convince the buyerPreempt the auction: convince the buyer
not to go forward with the auction becausenot to go forward with the auction because
you have a unique value proposition andyou have a unique value proposition and
are not inclined to participate.are not inclined to participate.
Manage the process: influence bidManage the process: influence bid
specifications and vendor qualificationspecifications and vendor qualification
criteria.criteria.
Walk away: simply refuse to participateWalk away: simply refuse to participate 3737
Centralized vs. Decentralized PurchasingCentralized vs. Decentralized Purchasing
Purchasing is moving away from a transaction-
based support role to a more strategic,
executive level role
One result of this is centralized purchasing
Centralized purchasing operates differently
than decentralized purchasing
Decentralized PurchasingDecentralized Purchasing
Decentralized purchasing allows localDecentralized purchasing allows local
branches to purchase what they need.branches to purchase what they need.
This results in local control, and for manyThis results in local control, and for many
kinds of services this makes sense.kinds of services this makes sense.
Marketing Strategy ResponseMarketing Strategy Response
The organization of the marketer’s selling strategyThe organization of the marketer’s selling strategy
should parallel the organization of the purchasingshould parallel the organization of the purchasing
function of key accounts.function of key accounts.
To avoid disjointed selling activities and internalTo avoid disjointed selling activities and internal
conflict in the sales organization, and to serve theconflict in the sales organization, and to serve the
special needs of important customers, manyspecial needs of important customers, many
business marketers have developed key accountbusiness marketers have developed key account
management programs.management programs.
Develop strategic relationships with a limitedDevelop strategic relationships with a limited
number of customers in order to achieve long-term,number of customers in order to achieve long-term,
sustained, significant, and measurable businesssustained, significant, and measurable business
value for both the customer and the providervalue for both the customer and the provider
Industrial Sales: How to Assess Group ForcesIndustrial Sales: How to Assess Group Forces
There are three questions that need to be addressed:There are three questions that need to be addressed:
1.1. Who takes part in the buying process?Who takes part in the buying process?
2.2. What is each member’s relative influence inWhat is each member’s relative influence in
decision?decision?
3.3. What criteria is important to each member inWhat criteria is important to each member in
evaluating the supplier?evaluating the supplier?
Answering these questions puts the salesperson in aAnswering these questions puts the salesperson in a
better position to become the chosen supplier.better position to become the chosen supplier.
Roles in the Buying CenterRoles in the Buying Center
InitiatorInitiator InfluencersInfluencers GatekeepersGatekeepers
DeciderDecider PurchaserPurchaser UsersUsers
8
Buying Center RolesBuying Center Roles
Initiator Initially perceives a problem and initiates the buying
process to solve it.
Influencer
Affects the purchasing decision by providing technical
information or other relevant (internal or external)
information.
Gatekeeper
Controls the information to be reviewed by members of the
buying group. (For example, buyer may screen advertising
material and even salespeople.)
Decider
Actually makes the buying decision, whether or not they
have formal authority to do so. Could be the owner, an
engineer or even the buyer.
Buyer
Has formal authority to select and purchase products or
services and the responsibility to implement and follow all
procurement procedures.
User Actually use the product in question. Can be
inconsequential or major players in the process.
Buying Center MembersBuying Center Members
Members of the buying center assume different
roles throughout the procurement process.
Clues to help
identify powerful
buying center
members:
1. Isolate the personal stakeholders
2. Follow the information flow
3. Identify the experts
4. Trace the connections to the top
5. Understand purchasing’s role
Isolating the Buying SituationIsolating the Buying Situation
Since buying is a process and not an event, one
needs to understand who affects the potential
sale and how they affect it.
One method is to isolate the sale. That means to
define the buying situation and to understand
what stage it is in. Effective salespeople create
a need, whereas less effective salespeople
become involved later in the buying process.
Strategy to Isolate the SaleStrategy to Isolate the Sale
Depending upon the product, selling companiesDepending upon the product, selling companies
that have new-buy products must:that have new-buy products must:
– Create a needCreate a need
– Get involved in the early stages of the buying processGet involved in the early stages of the buying process
Strategy to Isolate the SaleStrategy to Isolate the Sale
For more established type products (MRO), theFor more established type products (MRO), the
strategy should be to:strategy should be to:
– Get a footholdGet a foothold
– Start smallStart small
– Learn the companyLearn the company
– Offer better dealsOffer better deals
– Be ready to offer more as buying/selling opportunitiesBe ready to offer more as buying/selling opportunities
occuroccur
Clues for Identifying
Powerful Buying Center Members
1. Isolate personal stakeholders. Who has the
most to gain and/or lose?
2. Follow the information flow. Influencers are
usually the ones who actually facilitate the
exchange.
3. Identify the experts. Experts ask the most
questions, exhibit the most knowledge, and are
often the most influential.
Clues for IdentifyingClues for Identifying
Powerful Buying Center MembersPowerful Buying Center Members
4. Trace the communication to the top. Who are4. Trace the communication to the top. Who are
the decision makers?the decision makers?
5. Make sure you understand purchasing’s role.5. Make sure you understand purchasing’s role.
Often purchasers are not decision makers, butOften purchasers are not decision makers, but
they may be the bargainers. In repeat buyingthey may be the bargainers. In repeat buying
situations, they are usually dominant playerssituations, they are usually dominant players
because of their specialization.because of their specialization.
Who Makes the Decision?Who Makes the Decision?
Individuals make the decision, not organizations!Individuals make the decision, not organizations!
Each member has a unique personality,Each member has a unique personality,
experience and motive, and are subject to riskexperience and motive, and are subject to risk
and rewards.and rewards.
Professional marketers understand this andProfessional marketers understand this and
make sure that they learn to recognize andmake sure that they learn to recognize and
match to it.match to it.
Evaluative CriteriaEvaluative Criteria
Industrial product users value:Industrial product users value:
1.1. Prompt deliveryPrompt delivery
2.2. Efficient and effective serviceEfficient and effective service
Engineering values:Engineering values:
1.1. Product qualityProduct quality
2.2. StandardizationStandardization
3.3. TestingTesting
Purchasing values:Purchasing values:
1.1. Price advantage and economyPrice advantage and economy
2.2. Shipping and forwardingShipping and forwarding
Evaluative DifferencesEvaluative Differences
Education: Engineers have a differentEducation: Engineers have a different
educational background than purchasingeducational background than purchasing
agents.agents.
Also, various occupations have differentAlso, various occupations have different
dispositions. For example:dispositions. For example:
1.1. Engineers are usually cold, analytical andEngineers are usually cold, analytical and
suspecting.suspecting.
2.2. Salespeople are usually warm, open andSalespeople are usually warm, open and
optimistic.optimistic.
Marketing ResponseMarketing Response
By understanding the buying process and theBy understanding the buying process and the
various roles that link the buying groupvarious roles that link the buying group
together, the marketer is in a better position totogether, the marketer is in a better position to
match with them by working with the rightmatch with them by working with the right
people and the appropriate sales process.people and the appropriate sales process.
Selective Processes inSelective Processes in
Information ProcessingInformation Processing
• Selective exposure.Selective exposure.
• Selective attention.Selective attention.
• Selective perception.Selective perception.
• Selective retention.Selective retention.
Selective ExposureSelective Exposure
Individuals accept communicationIndividuals accept communication
messages consistent with theirmessages consistent with their
attitudes and beliefs.attitudes and beliefs.
This is why buyers will choose toThis is why buyers will choose to
talk to some salespeople and not totalk to some salespeople and not to
others.others.
Selective AttentionSelective Attention
People filter out stimuli only to allowPeople filter out stimuli only to allow
certain ones to cognition. For example,certain ones to cognition. For example,
buyers will notice certain ads that canbuyers will notice certain ads that can
solve a perceived need.solve a perceived need.
Selective PerceptionSelective Perception
People interpret stimuli in terms of theirPeople interpret stimuli in terms of their
attitudes and beliefs.attitudes and beliefs.
This explains why buyers may modify orThis explains why buyers may modify or
change their disposition to a salesperson inchange their disposition to a salesperson in
order to make it more consistent with theirorder to make it more consistent with their
predisposition towards the company.predisposition towards the company.
They like the company so they may like theThey like the company so they may like the
salesperson.salesperson.
Selective RetentionSelective Retention
People recall information that pertains toPeople recall information that pertains to
their own needs and dispositions.their own needs and dispositions.
For example, a buyer may rememberFor example, a buyer may remember
information about a certain brand becauseinformation about a certain brand because
it elicits a reaction that is consistent withit elicits a reaction that is consistent with
his/her criteria.his/her criteria.
Selective ProcessSelective Process
Each of those selective exposures elicits aEach of those selective exposures elicits a
reaction that influences the buyers’ actions.reaction that influences the buyers’ actions.
Since procurement activities often span a greatSince procurement activities often span a great
deal of time, it is imperative for marketers todeal of time, it is imperative for marketers to
carefully design and target their marketingcarefully design and target their marketing
communications.communications.
Salespeople who understand and adjust to buyerSalespeople who understand and adjust to buyer
psychological needs are usually more successfulpsychological needs are usually more successful
than those who are not cognizant or considerate ofthan those who are not cognizant or considerate of
those needs.those needs.
Risk-ReductionRisk-Reduction
Most people are adverse to risk,Most people are adverse to risk,
especially buyers. Great risk canespecially buyers. Great risk can
mean great loss and buyers can getmean great loss and buyers can get
fired for that.fired for that.
There are two components toThere are two components to
perceived risk. They are…perceived risk. They are…
Perceived Risk ComponentsPerceived Risk Components
1. Uncertainty about decision
outcomes.
2. Magnitude of consequences
associated with making a
wrong selection.
Confronting RiskConfronting Risk
The larger the purchase, the more influential the
buying center becomes and can often include
higher ranking members.
There is an extensive outside search to see
what others are doing in similar situations.
Sellers who have a proven track record are
favored.

More Related Content

What's hot

Culture of Consumer Behavior
Culture of Consumer BehaviorCulture of Consumer Behavior
Culture of Consumer BehaviorRupesh Poddar
 
Chapter 6 Consumer Perception
Chapter 6 Consumer PerceptionChapter 6 Consumer Perception
Chapter 6 Consumer PerceptionAvinash Kumar
 
Consumer Decision Making Process
Consumer Decision Making ProcessConsumer Decision Making Process
Consumer Decision Making Processbhagchand
 
Analyzing Consumer Markets / Marketing Management By Kotler Keller
Analyzing Consumer Markets / Marketing Management By Kotler KellerAnalyzing Consumer Markets / Marketing Management By Kotler Keller
Analyzing Consumer Markets / Marketing Management By Kotler KellerChoudhry Asad
 
What major psychological processes influence consumer responses to the market...
What major psychological processes influence consumer responses to the market...What major psychological processes influence consumer responses to the market...
What major psychological processes influence consumer responses to the market...Sameer Mathur
 
In what ways do consumers stray from a deliberative, rational decision proces...
In what ways do consumers stray from a deliberative, rational decision proces...In what ways do consumers stray from a deliberative, rational decision proces...
In what ways do consumers stray from a deliberative, rational decision proces...Vaishnavi Ketharnathan
 
Chapter 1 Introduction to Consumer Behaviour
Chapter 1 Introduction to Consumer BehaviourChapter 1 Introduction to Consumer Behaviour
Chapter 1 Introduction to Consumer BehaviourRaviNagarathanam3
 
Chapter 1 Marketing Management
Chapter 1 Marketing ManagementChapter 1 Marketing Management
Chapter 1 Marketing ManagementPeleZain
 
What major psychological processes influence consumer responses to the market...
What major psychological processes influence consumer responses to the market...What major psychological processes influence consumer responses to the market...
What major psychological processes influence consumer responses to the market...Vaishnavi Ketharnathan
 
Chapter 8 product, service, and brands (building customer value)
Chapter 8   product, service, and brands (building customer value)Chapter 8   product, service, and brands (building customer value)
Chapter 8 product, service, and brands (building customer value)Lance Üü
 
Chapter 10 Referene Group And Family Reference
Chapter 10 Referene Group And Family ReferenceChapter 10 Referene Group And Family Reference
Chapter 10 Referene Group And Family ReferenceAvinash Kumar
 
B2B Marketing - Chapter 2: Organizational Buyer Behavior
B2B Marketing - Chapter 2: Organizational Buyer BehaviorB2B Marketing - Chapter 2: Organizational Buyer Behavior
B2B Marketing - Chapter 2: Organizational Buyer BehaviorCalvin Nguyen
 
Consumer decision making process.
Consumer decision making process.Consumer decision making process.
Consumer decision making process.amathulmubeen
 
Self Concept - Consumer Behavior
Self Concept - Consumer BehaviorSelf Concept - Consumer Behavior
Self Concept - Consumer BehaviorRohan Telang
 
BB Chapter Ten : Motivation and Personality
BB Chapter Ten : Motivation and PersonalityBB Chapter Ten : Motivation and Personality
BB Chapter Ten : Motivation and PersonalityBBAdvisor
 

What's hot (20)

Culture of Consumer Behavior
Culture of Consumer BehaviorCulture of Consumer Behavior
Culture of Consumer Behavior
 
Chapter 6 Consumer Perception
Chapter 6 Consumer PerceptionChapter 6 Consumer Perception
Chapter 6 Consumer Perception
 
Consumer Decision Making Process
Consumer Decision Making ProcessConsumer Decision Making Process
Consumer Decision Making Process
 
Analyzing Consumer Markets / Marketing Management By Kotler Keller
Analyzing Consumer Markets / Marketing Management By Kotler KellerAnalyzing Consumer Markets / Marketing Management By Kotler Keller
Analyzing Consumer Markets / Marketing Management By Kotler Keller
 
Chapter 1 - Introduction to Consumer Behavior
Chapter 1 - Introduction to Consumer Behavior Chapter 1 - Introduction to Consumer Behavior
Chapter 1 - Introduction to Consumer Behavior
 
4. consumer behaviour
4. consumer behaviour4. consumer behaviour
4. consumer behaviour
 
What major psychological processes influence consumer responses to the market...
What major psychological processes influence consumer responses to the market...What major psychological processes influence consumer responses to the market...
What major psychological processes influence consumer responses to the market...
 
Consumer decision making process
Consumer decision making process Consumer decision making process
Consumer decision making process
 
In what ways do consumers stray from a deliberative, rational decision proces...
In what ways do consumers stray from a deliberative, rational decision proces...In what ways do consumers stray from a deliberative, rational decision proces...
In what ways do consumers stray from a deliberative, rational decision proces...
 
Chapter 1 Introduction to Consumer Behaviour
Chapter 1 Introduction to Consumer BehaviourChapter 1 Introduction to Consumer Behaviour
Chapter 1 Introduction to Consumer Behaviour
 
Chapter 1 Marketing Management
Chapter 1 Marketing ManagementChapter 1 Marketing Management
Chapter 1 Marketing Management
 
What major psychological processes influence consumer responses to the market...
What major psychological processes influence consumer responses to the market...What major psychological processes influence consumer responses to the market...
What major psychological processes influence consumer responses to the market...
 
Chapter 8 product, service, and brands (building customer value)
Chapter 8   product, service, and brands (building customer value)Chapter 8   product, service, and brands (building customer value)
Chapter 8 product, service, and brands (building customer value)
 
Chapter 10 Referene Group And Family Reference
Chapter 10 Referene Group And Family ReferenceChapter 10 Referene Group And Family Reference
Chapter 10 Referene Group And Family Reference
 
B2B Marketing - Chapter 2: Organizational Buyer Behavior
B2B Marketing - Chapter 2: Organizational Buyer BehaviorB2B Marketing - Chapter 2: Organizational Buyer Behavior
B2B Marketing - Chapter 2: Organizational Buyer Behavior
 
Consumer decision making process.
Consumer decision making process.Consumer decision making process.
Consumer decision making process.
 
Chapter 11 competitive dynamics
Chapter 11   competitive dynamicsChapter 11   competitive dynamics
Chapter 11 competitive dynamics
 
Self Concept - Consumer Behavior
Self Concept - Consumer BehaviorSelf Concept - Consumer Behavior
Self Concept - Consumer Behavior
 
Chapter 1 integrate marketing communication
Chapter 1 integrate marketing communicationChapter 1 integrate marketing communication
Chapter 1 integrate marketing communication
 
BB Chapter Ten : Motivation and Personality
BB Chapter Ten : Motivation and PersonalityBB Chapter Ten : Motivation and Personality
BB Chapter Ten : Motivation and Personality
 

Viewers also liked

Media Organizations, Media Managers
Media Organizations, Media Managers Media Organizations, Media Managers
Media Organizations, Media Managers Alex Gorelik, Ph. D.
 
Chapter 3 (characteristics of media management)
Chapter 3 (characteristics of media management)Chapter 3 (characteristics of media management)
Chapter 3 (characteristics of media management)Abdul Jawad Chaudhry
 
MEDIA ORGANISATION & MANAGEMENT
MEDIA ORGANISATION & MANAGEMENTMEDIA ORGANISATION & MANAGEMENT
MEDIA ORGANISATION & MANAGEMENTTrinity Dwarka
 
Chapter 1 (introduction to media management)
Chapter 1 (introduction to media management)Chapter 1 (introduction to media management)
Chapter 1 (introduction to media management)Abdul Jawad Chaudhry
 
Segmentation of business market
Segmentation of business marketSegmentation of business market
Segmentation of business marketSameer Mathur
 
Media management
Media managementMedia management
Media managementUsman Khan
 
Chapter 3: The Buying Behavior of Organizational Markets
Chapter 3: The Buying Behavior of Organizational MarketsChapter 3: The Buying Behavior of Organizational Markets
Chapter 3: The Buying Behavior of Organizational MarketsStephanie Arogante
 

Viewers also liked (9)

Media Organizations, Media Managers
Media Organizations, Media Managers Media Organizations, Media Managers
Media Organizations, Media Managers
 
Chapter 3 (characteristics of media management)
Chapter 3 (characteristics of media management)Chapter 3 (characteristics of media management)
Chapter 3 (characteristics of media management)
 
MEDIA ORGANISATION & MANAGEMENT
MEDIA ORGANISATION & MANAGEMENTMEDIA ORGANISATION & MANAGEMENT
MEDIA ORGANISATION & MANAGEMENT
 
Chapter 1 (introduction to media management)
Chapter 1 (introduction to media management)Chapter 1 (introduction to media management)
Chapter 1 (introduction to media management)
 
Factors influencing industrial buying (ism)
Factors influencing industrial buying (ism)Factors influencing industrial buying (ism)
Factors influencing industrial buying (ism)
 
Segmentation of business market
Segmentation of business marketSegmentation of business market
Segmentation of business market
 
Media management
Media managementMedia management
Media management
 
Digital Snapshot of India - January 2015
Digital Snapshot of India - January 2015Digital Snapshot of India - January 2015
Digital Snapshot of India - January 2015
 
Chapter 3: The Buying Behavior of Organizational Markets
Chapter 3: The Buying Behavior of Organizational MarketsChapter 3: The Buying Behavior of Organizational Markets
Chapter 3: The Buying Behavior of Organizational Markets
 

Similar to Chapter 2 (perspectives on the organizational buyer)

Kotler0611ebusinessmarketsandbusinessbuyerbehavior 130406131715-phpapp01 (1)
Kotler0611ebusinessmarketsandbusinessbuyerbehavior 130406131715-phpapp01 (1)Kotler0611ebusinessmarketsandbusinessbuyerbehavior 130406131715-phpapp01 (1)
Kotler0611ebusinessmarketsandbusinessbuyerbehavior 130406131715-phpapp01 (1)jeshurun15
 
B2B MARKETING 1.pptx
B2B MARKETING 1.pptxB2B MARKETING 1.pptx
B2B MARKETING 1.pptxgautam776146
 
Marketing 1_The Buying Behavior of Organizational Markets
Marketing 1_The Buying Behavior of Organizational MarketsMarketing 1_The Buying Behavior of Organizational Markets
Marketing 1_The Buying Behavior of Organizational MarketsLeomar Jay Oblianda
 
Bmgt 411 chapter_6
Bmgt 411 chapter_6Bmgt 411 chapter_6
Bmgt 411 chapter_6Chris Lovett
 
Organizational buying.pdf
Organizational buying.pdfOrganizational buying.pdf
Organizational buying.pdfMANASA759282
 
Nature of industrial buying
Nature of industrial buyingNature of industrial buying
Nature of industrial buyingBhupesh Kushwaha
 
robinson faris wind b2b by ansh
robinson faris wind b2b  by anshrobinson faris wind b2b  by ansh
robinson faris wind b2b by anshAnshul Sharma
 
Ch02 organ buying behavior
Ch02 organ buying behaviorCh02 organ buying behavior
Ch02 organ buying behaviorRakeshNimhan
 
RetailManagement_11.pptx
RetailManagement_11.pptxRetailManagement_11.pptx
RetailManagement_11.pptxgururaj101143
 
Sales & distribution management by Govind Kumar
Sales & distribution management by Govind KumarSales & distribution management by Govind Kumar
Sales & distribution management by Govind Kumarmyslidegk
 
important Organizational buying behavior
 important Organizational buying behavior  important Organizational buying behavior
important Organizational buying behavior aarati jadhav
 
D1What are some reasons management opposes unionization Do you .docx
D1What are some reasons management opposes unionization Do you .docxD1What are some reasons management opposes unionization Do you .docx
D1What are some reasons management opposes unionization Do you .docxrandyburney60861
 
Kotler_MM_07_ippt.pptx
Kotler_MM_07_ippt.pptxKotler_MM_07_ippt.pptx
Kotler_MM_07_ippt.pptxShershahAdnan
 
Organizational Buyer Decision Roles and Buying Process
Organizational Buyer Decision Roles and Buying ProcessOrganizational Buyer Decision Roles and Buying Process
Organizational Buyer Decision Roles and Buying ProcessShaikh Mahmood
 
Personal Selling: Chapter 4
Personal Selling: Chapter 4Personal Selling: Chapter 4
Personal Selling: Chapter 4Mazhar Masood
 
Ch4 segmenting b2 b mkts
Ch4 segmenting b2 b mktsCh4 segmenting b2 b mkts
Ch4 segmenting b2 b mktsRakeshNimhan
 

Similar to Chapter 2 (perspectives on the organizational buyer) (20)

Kotler0611ebusinessmarketsandbusinessbuyerbehavior 130406131715-phpapp01 (1)
Kotler0611ebusinessmarketsandbusinessbuyerbehavior 130406131715-phpapp01 (1)Kotler0611ebusinessmarketsandbusinessbuyerbehavior 130406131715-phpapp01 (1)
Kotler0611ebusinessmarketsandbusinessbuyerbehavior 130406131715-phpapp01 (1)
 
B2B MARKETING 1.pptx
B2B MARKETING 1.pptxB2B MARKETING 1.pptx
B2B MARKETING 1.pptx
 
Marketing 1_The Buying Behavior of Organizational Markets
Marketing 1_The Buying Behavior of Organizational MarketsMarketing 1_The Buying Behavior of Organizational Markets
Marketing 1_The Buying Behavior of Organizational Markets
 
Bm 2
Bm 2Bm 2
Bm 2
 
Bmgt 411 chapter_6
Bmgt 411 chapter_6Bmgt 411 chapter_6
Bmgt 411 chapter_6
 
Ch041
Ch041Ch041
Ch041
 
Organizational buying.pdf
Organizational buying.pdfOrganizational buying.pdf
Organizational buying.pdf
 
Nature of industrial buying
Nature of industrial buyingNature of industrial buying
Nature of industrial buying
 
robinson faris wind b2b by ansh
robinson faris wind b2b  by anshrobinson faris wind b2b  by ansh
robinson faris wind b2b by ansh
 
Ch02 organ buying behavior
Ch02 organ buying behaviorCh02 organ buying behavior
Ch02 organ buying behavior
 
RetailManagement_11.pptx
RetailManagement_11.pptxRetailManagement_11.pptx
RetailManagement_11.pptx
 
Ch03
Ch03Ch03
Ch03
 
Sales & distribution management by Govind Kumar
Sales & distribution management by Govind KumarSales & distribution management by Govind Kumar
Sales & distribution management by Govind Kumar
 
important Organizational buying behavior
 important Organizational buying behavior  important Organizational buying behavior
important Organizational buying behavior
 
D1What are some reasons management opposes unionization Do you .docx
D1What are some reasons management opposes unionization Do you .docxD1What are some reasons management opposes unionization Do you .docx
D1What are some reasons management opposes unionization Do you .docx
 
Kotler_MM_07_ippt.pptx
Kotler_MM_07_ippt.pptxKotler_MM_07_ippt.pptx
Kotler_MM_07_ippt.pptx
 
Organizational Buyer Decision Roles and Buying Process
Organizational Buyer Decision Roles and Buying ProcessOrganizational Buyer Decision Roles and Buying Process
Organizational Buyer Decision Roles and Buying Process
 
Personal Selling: Chapter 4
Personal Selling: Chapter 4Personal Selling: Chapter 4
Personal Selling: Chapter 4
 
Ch4 segmenting b2 b mkts
Ch4 segmenting b2 b mktsCh4 segmenting b2 b mkts
Ch4 segmenting b2 b mkts
 
Analyzing Business Market
Analyzing Business MarketAnalyzing Business Market
Analyzing Business Market
 

Recently uploaded

W.H.Bender Quote 61 -Influential restaurant and food service industry network...
W.H.Bender Quote 61 -Influential restaurant and food service industry network...W.H.Bender Quote 61 -Influential restaurant and food service industry network...
W.H.Bender Quote 61 -Influential restaurant and food service industry network...William (Bill) H. Bender, FCSI
 
personal branding kit for music business
personal branding kit for music businesspersonal branding kit for music business
personal branding kit for music businessbrjohnson6
 
Five Essential Tools for International SEO - Natalia Witczyk - SearchNorwich 15
Five Essential Tools for International SEO - Natalia Witczyk - SearchNorwich 15Five Essential Tools for International SEO - Natalia Witczyk - SearchNorwich 15
Five Essential Tools for International SEO - Natalia Witczyk - SearchNorwich 15SearchNorwich
 
Major SEO Trends in 2024 - Banyanbrain Digital
Major SEO Trends in 2024 - Banyanbrain DigitalMajor SEO Trends in 2024 - Banyanbrain Digital
Major SEO Trends in 2024 - Banyanbrain DigitalBanyanbrain
 
Rise and fall of Kulula.com, an airline won consumers by different marketing ...
Rise and fall of Kulula.com, an airline won consumers by different marketing ...Rise and fall of Kulula.com, an airline won consumers by different marketing ...
Rise and fall of Kulula.com, an airline won consumers by different marketing ...ssusereaa7d9
 
Analysis of Sineing Website and how to fix
Analysis of Sineing Website and how to fixAnalysis of Sineing Website and how to fix
Analysis of Sineing Website and how to fixDHARMENDER PRATAP
 
Social Media Marketing Portfolio - Maharsh Benday
Social Media Marketing Portfolio - Maharsh BendaySocial Media Marketing Portfolio - Maharsh Benday
Social Media Marketing Portfolio - Maharsh BendayMaharshBenday
 
TAM_AdEx-Cross_Media_Report-Banking_Finance_Investment_(BFSI)_2023.pdf
TAM_AdEx-Cross_Media_Report-Banking_Finance_Investment_(BFSI)_2023.pdfTAM_AdEx-Cross_Media_Report-Banking_Finance_Investment_(BFSI)_2023.pdf
TAM_AdEx-Cross_Media_Report-Banking_Finance_Investment_(BFSI)_2023.pdfSocial Samosa
 
Micro-Choices, Max Impact Personalizing Your Journey, One Moment at a Time.pdf
Micro-Choices, Max Impact Personalizing Your Journey, One Moment at a Time.pdfMicro-Choices, Max Impact Personalizing Your Journey, One Moment at a Time.pdf
Micro-Choices, Max Impact Personalizing Your Journey, One Moment at a Time.pdfPiyush Kumar
 
Unveiling the Legacy of the Rosetta stone A Key to Ancient Knowledge.pptx
Unveiling the Legacy of the Rosetta stone A Key to Ancient Knowledge.pptxUnveiling the Legacy of the Rosetta stone A Key to Ancient Knowledge.pptx
Unveiling the Legacy of the Rosetta stone A Key to Ancient Knowledge.pptxelizabethella096
 
Best 5 Graphics Designing Course In Chandigarh
Best 5 Graphics Designing Course In ChandigarhBest 5 Graphics Designing Course In Chandigarh
Best 5 Graphics Designing Course In Chandigarhhamitthakurdma01
 
2024 Social Trends Report V4 from Later.com
2024 Social Trends Report V4 from Later.com2024 Social Trends Report V4 from Later.com
2024 Social Trends Report V4 from Later.comnmislamchannal
 
Busty Desi⚡Call Girls in Sector 49 Noida Escorts >༒8448380779 Escort Service
Busty Desi⚡Call Girls in Sector 49 Noida Escorts >༒8448380779 Escort ServiceBusty Desi⚡Call Girls in Sector 49 Noida Escorts >༒8448380779 Escort Service
Busty Desi⚡Call Girls in Sector 49 Noida Escorts >༒8448380779 Escort ServiceDelhi Call girls
 
Press Release Distribution Evolving with Digital Trends.pdf
Press Release Distribution Evolving with Digital Trends.pdfPress Release Distribution Evolving with Digital Trends.pdf
Press Release Distribution Evolving with Digital Trends.pdfPR Wires
 
[Expert Panel] New Google Shopping Ads Strategies Uncovered
[Expert Panel] New Google Shopping Ads Strategies Uncovered[Expert Panel] New Google Shopping Ads Strategies Uncovered
[Expert Panel] New Google Shopping Ads Strategies UncoveredSearch Engine Journal
 
Distribution Ad Platform_ The Role of Distribution Ad Network.pdf
Distribution Ad Platform_ The Role of  Distribution Ad Network.pdfDistribution Ad Platform_ The Role of  Distribution Ad Network.pdf
Distribution Ad Platform_ The Role of Distribution Ad Network.pdfTransports Advertising
 
10 Email Marketing Best Practices to Increase Engagements, CTR, And ROI
10 Email Marketing Best Practices to Increase Engagements, CTR, And ROI10 Email Marketing Best Practices to Increase Engagements, CTR, And ROI
10 Email Marketing Best Practices to Increase Engagements, CTR, And ROIShamsudeen Adeshokan
 
Unlocking the Mystery of the Voynich Manuscript
Unlocking the Mystery of the Voynich ManuscriptUnlocking the Mystery of the Voynich Manuscript
Unlocking the Mystery of the Voynich Manuscriptelizabethella096
 
Enhancing Business Visibility PR Firms in San Francisco
Enhancing Business Visibility PR Firms in San FranciscoEnhancing Business Visibility PR Firms in San Francisco
Enhancing Business Visibility PR Firms in San Franciscosanfranciscoprfirms
 

Recently uploaded (20)

W.H.Bender Quote 61 -Influential restaurant and food service industry network...
W.H.Bender Quote 61 -Influential restaurant and food service industry network...W.H.Bender Quote 61 -Influential restaurant and food service industry network...
W.H.Bender Quote 61 -Influential restaurant and food service industry network...
 
personal branding kit for music business
personal branding kit for music businesspersonal branding kit for music business
personal branding kit for music business
 
Five Essential Tools for International SEO - Natalia Witczyk - SearchNorwich 15
Five Essential Tools for International SEO - Natalia Witczyk - SearchNorwich 15Five Essential Tools for International SEO - Natalia Witczyk - SearchNorwich 15
Five Essential Tools for International SEO - Natalia Witczyk - SearchNorwich 15
 
Major SEO Trends in 2024 - Banyanbrain Digital
Major SEO Trends in 2024 - Banyanbrain DigitalMajor SEO Trends in 2024 - Banyanbrain Digital
Major SEO Trends in 2024 - Banyanbrain Digital
 
Rise and fall of Kulula.com, an airline won consumers by different marketing ...
Rise and fall of Kulula.com, an airline won consumers by different marketing ...Rise and fall of Kulula.com, an airline won consumers by different marketing ...
Rise and fall of Kulula.com, an airline won consumers by different marketing ...
 
Analysis of Sineing Website and how to fix
Analysis of Sineing Website and how to fixAnalysis of Sineing Website and how to fix
Analysis of Sineing Website and how to fix
 
Social Media Marketing Portfolio - Maharsh Benday
Social Media Marketing Portfolio - Maharsh BendaySocial Media Marketing Portfolio - Maharsh Benday
Social Media Marketing Portfolio - Maharsh Benday
 
TAM_AdEx-Cross_Media_Report-Banking_Finance_Investment_(BFSI)_2023.pdf
TAM_AdEx-Cross_Media_Report-Banking_Finance_Investment_(BFSI)_2023.pdfTAM_AdEx-Cross_Media_Report-Banking_Finance_Investment_(BFSI)_2023.pdf
TAM_AdEx-Cross_Media_Report-Banking_Finance_Investment_(BFSI)_2023.pdf
 
Micro-Choices, Max Impact Personalizing Your Journey, One Moment at a Time.pdf
Micro-Choices, Max Impact Personalizing Your Journey, One Moment at a Time.pdfMicro-Choices, Max Impact Personalizing Your Journey, One Moment at a Time.pdf
Micro-Choices, Max Impact Personalizing Your Journey, One Moment at a Time.pdf
 
Unveiling the Legacy of the Rosetta stone A Key to Ancient Knowledge.pptx
Unveiling the Legacy of the Rosetta stone A Key to Ancient Knowledge.pptxUnveiling the Legacy of the Rosetta stone A Key to Ancient Knowledge.pptx
Unveiling the Legacy of the Rosetta stone A Key to Ancient Knowledge.pptx
 
Best 5 Graphics Designing Course In Chandigarh
Best 5 Graphics Designing Course In ChandigarhBest 5 Graphics Designing Course In Chandigarh
Best 5 Graphics Designing Course In Chandigarh
 
2024 Social Trends Report V4 from Later.com
2024 Social Trends Report V4 from Later.com2024 Social Trends Report V4 from Later.com
2024 Social Trends Report V4 from Later.com
 
Busty Desi⚡Call Girls in Sector 49 Noida Escorts >༒8448380779 Escort Service
Busty Desi⚡Call Girls in Sector 49 Noida Escorts >༒8448380779 Escort ServiceBusty Desi⚡Call Girls in Sector 49 Noida Escorts >༒8448380779 Escort Service
Busty Desi⚡Call Girls in Sector 49 Noida Escorts >༒8448380779 Escort Service
 
Press Release Distribution Evolving with Digital Trends.pdf
Press Release Distribution Evolving with Digital Trends.pdfPress Release Distribution Evolving with Digital Trends.pdf
Press Release Distribution Evolving with Digital Trends.pdf
 
[Expert Panel] New Google Shopping Ads Strategies Uncovered
[Expert Panel] New Google Shopping Ads Strategies Uncovered[Expert Panel] New Google Shopping Ads Strategies Uncovered
[Expert Panel] New Google Shopping Ads Strategies Uncovered
 
Distribution Ad Platform_ The Role of Distribution Ad Network.pdf
Distribution Ad Platform_ The Role of  Distribution Ad Network.pdfDistribution Ad Platform_ The Role of  Distribution Ad Network.pdf
Distribution Ad Platform_ The Role of Distribution Ad Network.pdf
 
4 TRIK CARA MENGGUGURKAN JANIN ATAU ABORSI KANDUNGAN
4 TRIK CARA MENGGUGURKAN JANIN ATAU ABORSI KANDUNGAN4 TRIK CARA MENGGUGURKAN JANIN ATAU ABORSI KANDUNGAN
4 TRIK CARA MENGGUGURKAN JANIN ATAU ABORSI KANDUNGAN
 
10 Email Marketing Best Practices to Increase Engagements, CTR, And ROI
10 Email Marketing Best Practices to Increase Engagements, CTR, And ROI10 Email Marketing Best Practices to Increase Engagements, CTR, And ROI
10 Email Marketing Best Practices to Increase Engagements, CTR, And ROI
 
Unlocking the Mystery of the Voynich Manuscript
Unlocking the Mystery of the Voynich ManuscriptUnlocking the Mystery of the Voynich Manuscript
Unlocking the Mystery of the Voynich Manuscript
 
Enhancing Business Visibility PR Firms in San Francisco
Enhancing Business Visibility PR Firms in San FranciscoEnhancing Business Visibility PR Firms in San Francisco
Enhancing Business Visibility PR Firms in San Francisco
 

Chapter 2 (perspectives on the organizational buyer)

  • 2. Chapter TopicsChapter Topics Inside and outside forces influence organizational buying. In this chapter you’ll learn about: 1.The organizational buying process 2.The four main factors that impact organizational buying decisions 3.A model of organizational buying behavior 4.How knowledge of organizational buying enables marketers to make more informed decisions on product design, pricing and promotion 22
  • 3. Understanding the DynamicsUnderstanding the Dynamics of Organizational Buyingof Organizational Buying Market-driven firms sense market trends and workMarket-driven firms sense market trends and work closely with their customers and vendors. This is crucialclosely with their customers and vendors. This is crucial to:to: Identify profitable market segmentsIdentify profitable market segments Locate buying influences within segmentsLocate buying influences within segments Reach organizational buyers efficiently and effectivelyReach organizational buyers efficiently and effectively with an offerwith an offer Each decision goes through various steps. Skipping aEach decision goes through various steps. Skipping a step can be essential to the decision-making process.step can be essential to the decision-making process.
  • 4. Buying as a Process Buying is a process, not an event There are various points in the process that are referred to as “Critical Decision Points” and “Evolving Information Requirements” It starts with “Problem Recognition”
  • 5. Organizational Buying Process 1. Problem Recognition 2. General Description of Need 3. Product Specifications 4. Supplier Search 5. Acquisition and Analysis of Proposals 6. Supplier Selection 7. Selection of Order Routine 8. Performance Review Organizational Buying Process
  • 6. 1. Problem Recognition1. Problem Recognition Before anything is bought, most buyersBefore anything is bought, most buyers need to be made aware of a problem.need to be made aware of a problem.
  • 7. 1. Problem Recognition1. Problem Recognition Internally:Internally: A machine breaks downA machine breaks down Someone needs to order a productSomeone needs to order a product Someone recognizes an opportunity thatSomeone recognizes an opportunity that can be captured by acquiring the productcan be captured by acquiring the product
  • 8. 1. Problem Recognition1. Problem Recognition Externally:Externally: More often than not, it is the salesperson whoMore often than not, it is the salesperson who precipitates the need for a new productprecipitates the need for a new product Advertising also can influence purchasingAdvertising also can influence purchasing Many organizations use the Push/PullMany organizations use the Push/Pull StrategyStrategy
  • 9. 2. General Description of Need2. General Description of Need Once a need is recognized, the purchasing department works with the buying group to define what is needed by asking: What is the extent of the problem? What alternatives can solve the problem? Where can the solution be purchased? Each small decision ultimately helps define the product specifications. Sometimes the supplier is involved if the supplier influences the sale (i.e., the supplier makes the buyer aware of the need).
  • 10. 3. Product Specifications3. Product Specifications Many times the question boils down to:Many times the question boils down to: 1.1. Is it a new task buy?Is it a new task buy? 2.2. Is it a straight rebuy?Is it a straight rebuy? 3.3. Is it a modified rebuy?Is it a modified rebuy? Buyers try to be objective and consider many ideas.Buyers try to be objective and consider many ideas. Professional sellers try to influence this decision asProfessional sellers try to influence this decision as early as possible in the buying process—if they can!early as possible in the buying process—if they can!
  • 11. 3. Product Specifications3. Product Specifications This is an important because it oftenThis is an important because it often determines how the contract is structureddetermines how the contract is structured and the specific wording that it uses.and the specific wording that it uses.
  • 12. 4. Supplier Search4. Supplier Search Who will be the supplier?Who will be the supplier? The creating influencer has a lot ofThe creating influencer has a lot of say about the choice of supplier. If asay about the choice of supplier. If a salesperson creates the need, oftensalesperson creates the need, often the specs are written so that only thethe specs are written so that only the salesperson’s organization is able tosalesperson’s organization is able to fulfill the contract.fulfill the contract. In established businesses, oftenIn established businesses, often only preferred vendors areonly preferred vendors are considered.considered.
  • 13. 5. Acquisition and Analysis of5. Acquisition and Analysis of ProposalsProposals This step occurs only when the buying organization lacksThis step occurs only when the buying organization lacks adequate information to make a decision.adequate information to make a decision. Proposals are presented in detail often by a teamProposals are presented in detail often by a team engineers, users and purchasing agents. Successfulengineers, users and purchasing agents. Successful proposals determine the supplier.proposals determine the supplier. Many times, this step is perfunctory. The buyer mayMany times, this step is perfunctory. The buyer may have already determined the preferred vendor, buthave already determined the preferred vendor, but legally it may be necessary to seek other vendorlegally it may be necessary to seek other vendor proposals to attain government contracts.proposals to attain government contracts.
  • 14. 6. Supplier Selection6. Supplier Selection At this point, negotiation includes not only monies,At this point, negotiation includes not only monies, but also:but also: 1.1.QuantitiesQuantities 2.2.Delivery timesDelivery times 3.3.Level of serviceLevel of service 4.4.WarrantiesWarranties 5.5.Payment schedulesPayment schedules 6.6.And a host of final details that determine selectionAnd a host of final details that determine selection
  • 15. 7. Selection of Order Routine7. Selection of Order Routine Once the supplier is selected, the orderOnce the supplier is selected, the order routines are establishedroutines are established
  • 16. 8. Performance Review8. Performance Review After receipt of the product or service, aAfter receipt of the product or service, a performance review asks:performance review asks: 1.1.Did the supplier meet delivery time?Did the supplier meet delivery time? 2.2.Did the product meet the specs?Did the product meet the specs? 3.3.Does the contract have to be modified?Does the contract have to be modified? 4.4.Did the vendor live up to expectations?Did the vendor live up to expectations?
  • 17. Buying ProcessBuying Process Stages in the buying process are not asStages in the buying process are not as sequential as suggested by the model.sequential as suggested by the model. Sometimes steps are skipped. For example, onSometimes steps are skipped. For example, on straight rebuys, buyers choose to purchasestraight rebuys, buyers choose to purchase almost immediately.almost immediately. However, the model represents importantHowever, the model represents important aspects of how companies buy and evaluateaspects of how companies buy and evaluate business purchases.business purchases.
  • 18. Buying ProcessBuying Process There are other events that influence theThere are other events that influence the buying process, most notably:buying process, most notably: 1.1.Economic conditionsEconomic conditions 2.2.CompetitionCompetition 3.3.Basic shifts in the organizationalBasic shifts in the organizational objectivesobjectives 4.The buying situation
  • 19. Business Strategy ConsiderationsBusiness Strategy Considerations The business marketer must always try toThe business marketer must always try to understand the sale from the buyer’s perspectiveunderstand the sale from the buyer’s perspective and do everything to make it easier for the buyerand do everything to make it easier for the buyer to buy.to buy.
  • 20. Business Strategy ConsiderationsBusiness Strategy Considerations Marketers needs to understand:Marketers needs to understand: 1.1. Who are the decision makers?Who are the decision makers? 2.2. What are their problem(s)?What are their problem(s)? 3.3. What are their purchasing patterns?What are their purchasing patterns? 4.4. What is the importance of their purchase?What is the importance of their purchase? 5.5. What is the timing of the purchase?What is the timing of the purchase?
  • 21. Forces Influencing Organizational BuyingForces Influencing Organizational Buying BehaviorBehavior Environmental Forces Organizational Forces Group Forces Individual Forces Organizational Buying Behavior • Economic outlook: domestic & global • Pace of technological change • Global trade relations • Goals, objectives and strategies • Organizational position of purchasing • Roles, relative influence and patterns of interaction of buying decision participants •Job function, past experience, and buying motives of individual decision participants A projected change in business conditions can alter buying plans drastically.
  • 22. Environmental Forces - EconomicEnvironmental Forces - Economic InfluencesInfluences Changes in the environment such as businessChanges in the environment such as business conditions, technological advances or newconditions, technological advances or new legislation can affect buying plans.legislation can affect buying plans. Since much of business is driven by derivedSince much of business is driven by derived demand, business marketers must be sensitivedemand, business marketers must be sensitive to changes in the consumer market.to changes in the consumer market. Also, the economy can determine a company’sAlso, the economy can determine a company’s ability or willingness to buy. If the economy isability or willingness to buy. If the economy is bad, companies often put off purchasing untilbad, companies often put off purchasing until they see a change.they see a change.
  • 23. Economic InfluencesEconomic Influences Not all companies are affected equally. For example, high interest rates may affect housing starts but may not affect food products, medical or transportation services. Finally, there is an affect from foreign competitors such as China and India. Both have strong labor saving costs as a competitive advantage.
  • 24. Technological InfluencesTechnological Influences Technology is changing so quickly that yesterday’sTechnology is changing so quickly that yesterday’s technological advancement is today’s electronictechnological advancement is today’s electronic commodity.commodity. Example: ComputersExample: Computers However, all companies need to stay alert to theseHowever, all companies need to stay alert to these changes. For example, Blockbuster is feeling the pinchchanges. For example, Blockbuster is feeling the pinch of Netflix, Internet and satellite movies-on-demand.of Netflix, Internet and satellite movies-on-demand. Technological change—especially from the Internet—isTechnological change—especially from the Internet—is drastically changing the way companies do business.drastically changing the way companies do business.
  • 25. Technological ChangeTechnological Change The Internet has leveled the playing field, allowing competitors the opportunity to compete in the world’s most technological advanced countries. It affects not only entire companies (the printing industry is struggling due to digital printing and electronic communication), but also individual careers (an “A” programmer in India can be purchased for $2-4/hour).
  • 26. Organizational Forces &Organizational Forces & Growing Influence of PurchasingGrowing Influence of Purchasing As manufacturing has become less important,As manufacturing has become less important, purchasing and procurement have become morepurchasing and procurement have become more important.important. Companies are outsourcing many activitiesCompanies are outsourcing many activities such as manufacturing, marketing, accounting,such as manufacturing, marketing, accounting, etc., yet procurement remains a strong influenceetc., yet procurement remains a strong influence resulting in a shift to more professionalresulting in a shift to more professional procurement positions.procurement positions.
  • 27. Strategic Priorities inStrategic Priorities in PurchasingPurchasing As the purchasing profession grows, so do itsAs the purchasing profession grows, so do its goals and priorities.goals and priorities. Purchasers are more ambitious, resulting in a morePurchasers are more ambitious, resulting in a more competitive environment. An effective marketingcompetitive environment. An effective marketing strategy develops stronger and deeperstrategy develops stronger and deeper relationships with purchasers.relationships with purchasers. This is the impetus for Relationship Marketing.This is the impetus for Relationship Marketing.
  • 28. Strategic Priorities in PurchasingStrategic Priorities in Purchasing Aligning Purchasing with Strategy, Not Just Buyers Shift from administrative role to value-creating function that serves internal stakeholders and provides competitive edge in market. Exploring New Value Frontiers: It’s Not Just About Price Focus on suppliers’ capabilities, emphasizing business outcomes, total ownership costs, and potential for long-term value creation.
  • 29. Strategic Priorities in PurchasingStrategic Priorities in Purchasing • Putting SuppliersPutting Suppliers Inside:Inside: The Best ValueThe Best Value Chain WinsChain Wins • Develop fewer and deeperDevelop fewer and deeper relationships with strategicrelationships with strategic suppliers and involve them insuppliers and involve them in decision- making processes,decision- making processes, ranging from new productranging from new product development to cost-reductiondevelopment to cost-reduction initiatives.initiatives. • Pursuing Low-Cost Sources: A World Worth Exploring Overcome hurdles imposed by geographical differences and seek out cost-effective suppliers around globe.
  • 30. Marketing StrategicMarketing Strategic ConsiderationsConsiderations As Purchasers develop their strategic roles, MarketersAs Purchasers develop their strategic roles, Marketers respond by developing strategic alliances to become arespond by developing strategic alliances to become a part of their business.part of their business. Buyers and Sellers know that “the best value supplyBuyers and Sellers know that “the best value supply chain wins” the customer…and the profits.chain wins” the customer…and the profits. The result is closer relationships with carefully chosenThe result is closer relationships with carefully chosen suppliers who can align their activities with customersuppliers who can align their activities with customer needs.needs. Example: At this time in history, Walmart is one of theExample: At this time in history, Walmart is one of the best at accomplishing this activity!best at accomplishing this activity!
  • 31. 3131 Procurement Manager’s Toolkit Total Cost of Ownership TCO considers the full range of costs associated with the purchase and use of a product or service over its complete life cycle.
  • 32. 3232 1. Acquisition costs: selling price and transportation costs & administrative costs of evaluating suppliers, expediting orders, and correcting errors in shipments or delivery. 2. Possession costs: include financing, storage, nspection, taxes, insurance, and other internal handling costs. 3. Usage costs: are those associated with ongoing use of the purchased product such as installation, employee training, user labor, and field repair, as well as product replacement and disposal costs. TCO
  • 33. Value-based Selling ToolsValue-based Selling Tools Astute business marketers can pursueAstute business marketers can pursue value-based strategies that providevalue-based strategies that provide customers with a lower cost-in-usecustomers with a lower cost-in-use solution.solution. Value-based strategies seek to move theValue-based strategies seek to move the selling proposition from one that centersselling proposition from one that centers on current prices and individualon current prices and individual transactions to a longer-term relationshiptransactions to a longer-term relationship built on value and lower total cost-in-use.built on value and lower total cost-in-use. 3333
  • 34. Segmenting the BuySegmenting the Buy Various categories of purchases areVarious categories of purchases are segmented on the basis of procurementsegmented on the basis of procurement complexity and the nature of the effect oncomplexity and the nature of the effect on corporate performancecorporate performance Use a segmentation approach to isolateUse a segmentation approach to isolate those purchase categories that have thethose purchase categories that have the greatest effect on corporate revenuesgreatest effect on corporate revenues 3434
  • 35. E-ProcurementE-Procurement Purchasing managers use the Internet to find new suppliers, communicate with current suppliers, or place an order. E-procurement cut purchasing cycle time in half, reduced material costs by 14 percent and purchasing administrative costs by 60 percent, and enhance the ability of procurement units to identify new suppliers on a global scale. 3535
  • 36. Reverse AuctionsReverse Auctions Involves one buyer who invites bids fromInvolves one buyer who invites bids from several prequalified suppliers who face off inseveral prequalified suppliers who face off in a dynamic, real-time, competitive biddinga dynamic, real-time, competitive bidding process.process. Reverse auctions are best suited forReverse auctions are best suited for commodity-type items such as purchasingcommodity-type items such as purchasing materials, diesel fuel, metal parts, chemicals,materials, diesel fuel, metal parts, chemicals, and many raw materialsand many raw materials 3636
  • 37. A Strategic Approach toA Strategic Approach to Reverse AuctionsReverse Auctions ““Preempt the auction: convince the buyerPreempt the auction: convince the buyer not to go forward with the auction becausenot to go forward with the auction because you have a unique value proposition andyou have a unique value proposition and are not inclined to participate.are not inclined to participate. Manage the process: influence bidManage the process: influence bid specifications and vendor qualificationspecifications and vendor qualification criteria.criteria. Walk away: simply refuse to participateWalk away: simply refuse to participate 3737
  • 38. Centralized vs. Decentralized PurchasingCentralized vs. Decentralized Purchasing Purchasing is moving away from a transaction- based support role to a more strategic, executive level role One result of this is centralized purchasing Centralized purchasing operates differently than decentralized purchasing
  • 39. Decentralized PurchasingDecentralized Purchasing Decentralized purchasing allows localDecentralized purchasing allows local branches to purchase what they need.branches to purchase what they need. This results in local control, and for manyThis results in local control, and for many kinds of services this makes sense.kinds of services this makes sense.
  • 40. Marketing Strategy ResponseMarketing Strategy Response The organization of the marketer’s selling strategyThe organization of the marketer’s selling strategy should parallel the organization of the purchasingshould parallel the organization of the purchasing function of key accounts.function of key accounts. To avoid disjointed selling activities and internalTo avoid disjointed selling activities and internal conflict in the sales organization, and to serve theconflict in the sales organization, and to serve the special needs of important customers, manyspecial needs of important customers, many business marketers have developed key accountbusiness marketers have developed key account management programs.management programs. Develop strategic relationships with a limitedDevelop strategic relationships with a limited number of customers in order to achieve long-term,number of customers in order to achieve long-term, sustained, significant, and measurable businesssustained, significant, and measurable business value for both the customer and the providervalue for both the customer and the provider
  • 41. Industrial Sales: How to Assess Group ForcesIndustrial Sales: How to Assess Group Forces There are three questions that need to be addressed:There are three questions that need to be addressed: 1.1. Who takes part in the buying process?Who takes part in the buying process? 2.2. What is each member’s relative influence inWhat is each member’s relative influence in decision?decision? 3.3. What criteria is important to each member inWhat criteria is important to each member in evaluating the supplier?evaluating the supplier? Answering these questions puts the salesperson in aAnswering these questions puts the salesperson in a better position to become the chosen supplier.better position to become the chosen supplier.
  • 42. Roles in the Buying CenterRoles in the Buying Center InitiatorInitiator InfluencersInfluencers GatekeepersGatekeepers DeciderDecider PurchaserPurchaser UsersUsers 8
  • 43. Buying Center RolesBuying Center Roles Initiator Initially perceives a problem and initiates the buying process to solve it. Influencer Affects the purchasing decision by providing technical information or other relevant (internal or external) information. Gatekeeper Controls the information to be reviewed by members of the buying group. (For example, buyer may screen advertising material and even salespeople.) Decider Actually makes the buying decision, whether or not they have formal authority to do so. Could be the owner, an engineer or even the buyer. Buyer Has formal authority to select and purchase products or services and the responsibility to implement and follow all procurement procedures. User Actually use the product in question. Can be inconsequential or major players in the process.
  • 44. Buying Center MembersBuying Center Members Members of the buying center assume different roles throughout the procurement process. Clues to help identify powerful buying center members: 1. Isolate the personal stakeholders 2. Follow the information flow 3. Identify the experts 4. Trace the connections to the top 5. Understand purchasing’s role
  • 45. Isolating the Buying SituationIsolating the Buying Situation Since buying is a process and not an event, one needs to understand who affects the potential sale and how they affect it. One method is to isolate the sale. That means to define the buying situation and to understand what stage it is in. Effective salespeople create a need, whereas less effective salespeople become involved later in the buying process.
  • 46. Strategy to Isolate the SaleStrategy to Isolate the Sale Depending upon the product, selling companiesDepending upon the product, selling companies that have new-buy products must:that have new-buy products must: – Create a needCreate a need – Get involved in the early stages of the buying processGet involved in the early stages of the buying process
  • 47. Strategy to Isolate the SaleStrategy to Isolate the Sale For more established type products (MRO), theFor more established type products (MRO), the strategy should be to:strategy should be to: – Get a footholdGet a foothold – Start smallStart small – Learn the companyLearn the company – Offer better dealsOffer better deals – Be ready to offer more as buying/selling opportunitiesBe ready to offer more as buying/selling opportunities occuroccur
  • 48. Clues for Identifying Powerful Buying Center Members 1. Isolate personal stakeholders. Who has the most to gain and/or lose? 2. Follow the information flow. Influencers are usually the ones who actually facilitate the exchange. 3. Identify the experts. Experts ask the most questions, exhibit the most knowledge, and are often the most influential.
  • 49. Clues for IdentifyingClues for Identifying Powerful Buying Center MembersPowerful Buying Center Members 4. Trace the communication to the top. Who are4. Trace the communication to the top. Who are the decision makers?the decision makers? 5. Make sure you understand purchasing’s role.5. Make sure you understand purchasing’s role. Often purchasers are not decision makers, butOften purchasers are not decision makers, but they may be the bargainers. In repeat buyingthey may be the bargainers. In repeat buying situations, they are usually dominant playerssituations, they are usually dominant players because of their specialization.because of their specialization.
  • 50. Who Makes the Decision?Who Makes the Decision? Individuals make the decision, not organizations!Individuals make the decision, not organizations! Each member has a unique personality,Each member has a unique personality, experience and motive, and are subject to riskexperience and motive, and are subject to risk and rewards.and rewards. Professional marketers understand this andProfessional marketers understand this and make sure that they learn to recognize andmake sure that they learn to recognize and match to it.match to it.
  • 51. Evaluative CriteriaEvaluative Criteria Industrial product users value:Industrial product users value: 1.1. Prompt deliveryPrompt delivery 2.2. Efficient and effective serviceEfficient and effective service Engineering values:Engineering values: 1.1. Product qualityProduct quality 2.2. StandardizationStandardization 3.3. TestingTesting Purchasing values:Purchasing values: 1.1. Price advantage and economyPrice advantage and economy 2.2. Shipping and forwardingShipping and forwarding
  • 52. Evaluative DifferencesEvaluative Differences Education: Engineers have a differentEducation: Engineers have a different educational background than purchasingeducational background than purchasing agents.agents. Also, various occupations have differentAlso, various occupations have different dispositions. For example:dispositions. For example: 1.1. Engineers are usually cold, analytical andEngineers are usually cold, analytical and suspecting.suspecting. 2.2. Salespeople are usually warm, open andSalespeople are usually warm, open and optimistic.optimistic.
  • 53. Marketing ResponseMarketing Response By understanding the buying process and theBy understanding the buying process and the various roles that link the buying groupvarious roles that link the buying group together, the marketer is in a better position totogether, the marketer is in a better position to match with them by working with the rightmatch with them by working with the right people and the appropriate sales process.people and the appropriate sales process.
  • 54. Selective Processes inSelective Processes in Information ProcessingInformation Processing • Selective exposure.Selective exposure. • Selective attention.Selective attention. • Selective perception.Selective perception. • Selective retention.Selective retention.
  • 55. Selective ExposureSelective Exposure Individuals accept communicationIndividuals accept communication messages consistent with theirmessages consistent with their attitudes and beliefs.attitudes and beliefs. This is why buyers will choose toThis is why buyers will choose to talk to some salespeople and not totalk to some salespeople and not to others.others.
  • 56. Selective AttentionSelective Attention People filter out stimuli only to allowPeople filter out stimuli only to allow certain ones to cognition. For example,certain ones to cognition. For example, buyers will notice certain ads that canbuyers will notice certain ads that can solve a perceived need.solve a perceived need.
  • 57. Selective PerceptionSelective Perception People interpret stimuli in terms of theirPeople interpret stimuli in terms of their attitudes and beliefs.attitudes and beliefs. This explains why buyers may modify orThis explains why buyers may modify or change their disposition to a salesperson inchange their disposition to a salesperson in order to make it more consistent with theirorder to make it more consistent with their predisposition towards the company.predisposition towards the company. They like the company so they may like theThey like the company so they may like the salesperson.salesperson.
  • 58. Selective RetentionSelective Retention People recall information that pertains toPeople recall information that pertains to their own needs and dispositions.their own needs and dispositions. For example, a buyer may rememberFor example, a buyer may remember information about a certain brand becauseinformation about a certain brand because it elicits a reaction that is consistent withit elicits a reaction that is consistent with his/her criteria.his/her criteria.
  • 59. Selective ProcessSelective Process Each of those selective exposures elicits aEach of those selective exposures elicits a reaction that influences the buyers’ actions.reaction that influences the buyers’ actions. Since procurement activities often span a greatSince procurement activities often span a great deal of time, it is imperative for marketers todeal of time, it is imperative for marketers to carefully design and target their marketingcarefully design and target their marketing communications.communications. Salespeople who understand and adjust to buyerSalespeople who understand and adjust to buyer psychological needs are usually more successfulpsychological needs are usually more successful than those who are not cognizant or considerate ofthan those who are not cognizant or considerate of those needs.those needs.
  • 60. Risk-ReductionRisk-Reduction Most people are adverse to risk,Most people are adverse to risk, especially buyers. Great risk canespecially buyers. Great risk can mean great loss and buyers can getmean great loss and buyers can get fired for that.fired for that. There are two components toThere are two components to perceived risk. They are…perceived risk. They are…
  • 61. Perceived Risk ComponentsPerceived Risk Components 1. Uncertainty about decision outcomes. 2. Magnitude of consequences associated with making a wrong selection.
  • 62. Confronting RiskConfronting Risk The larger the purchase, the more influential the buying center becomes and can often include higher ranking members. There is an extensive outside search to see what others are doing in similar situations. Sellers who have a proven track record are favored.