Organizational buying: Dr, Gopal Thapa

1. Organizational Buying
Dr. Gopal Thapa
Associate Professor
Tribhuvan University

2. Organizational Buying
◼ Organizational buying is the decision-making
process by which formal organizations establish
the need for purchased products and services and
identify, evaluate and choose among alternative
brands and suppliers.
▪ Frederick E. Webster and Yoram
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3. Features of Organizational Buying
◼ Fewer, larger buyers
◼ Close supplier-customer relationships
◼ Professional purchasing
◼ Multiple buying influences
◼ Multiple sales calls
◼ Derived demand
◼ Inelastic demand
◼ Fluctuating Demand
◼ Geographically concentrated buyers
◼ Direct purchasing
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4. Buying Situations
◼ Straight rebuy
◼ Modified rebuy
◼ New task
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5. Participants in the Business Buying
Process
◼ The buying center
◼ Buying center influences
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6. The Buying Center
◼ The decision making unit of a buying organization
is called its buying center.
◼ The buying center includes all members of the
organization who play any of the seven roles in
the purchase decision process.
◼ One people may play multiple roles.
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7. The Buying Center
◼ Initiators
◼ Users
◼ Influencers
◼ Deciders
◼ Approvers
◼ Buyers
◼ Gatekeepers
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8. Buying Center Influences
◼ Interpersonal factors
◼ Authority, interest, status, persuasiveness
◼ Personal factors
◼ Age, income, education, job position, personality,
attitudes towards risk and culture
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9. Stages in the Buying Process
◼ Problem Recognition
◼ General need description and product specification
◼ Suppliers search
◼ Proposal solicitation
◼ Supplier selection
◼ Order routine specification
◼ Performance review
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10. Developing effective B2B
Marketing Program
◼ Communication and branding activities
◼ System buying and selling
◼ Role of services
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11. Managing B2B Customer
Relationship
◼ The benefits of vertical coordination
◼ Risks and opportunism in business relationship
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12. Institutional and Government
Markets
◼ The institutional market consists of schools,
hospitals, nursing homes, prisons etc.
◼ Government organizations are major buyers of
goods and services
◼ Government buyer needs considerable paper
works
◼ Major problems are: bureaucracy, regulations,
decision making delays, frequent shifts in
procurement staffs
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13. Any Queries?
Thank you
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