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Organizational buyig

Organizational buying: Dr, Gopal Thapa

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Organizational buyig

  1. 1. Organizational Buying Dr. Gopal Thapa Associate Professor Tribhuvan University
  2. 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 5/24/2020 Copy right reserved 2
  3. 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 5/24/2020 Copy right reserved 3
  4. 4. Buying Situations ◼ Straight rebuy ◼ Modified rebuy ◼ New task 5/24/2020 Copy right reserved 4
  5. 5. Participants in the Business Buying Process ◼ The buying center ◼ Buying center influences 5/24/2020 Copy right reserved 5
  6. 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. 5/24/2020 Copy right reserved 6
  7. 7. The Buying Center ◼ Initiators ◼ Users ◼ Influencers ◼ Deciders ◼ Approvers ◼ Buyers ◼ Gatekeepers 5/24/2020 Copy right reserved 7
  8. 8. Buying Center Influences ◼ Interpersonal factors ◼ Authority, interest, status, persuasiveness ◼ Personal factors ◼ Age, income, education, job position, personality, attitudes towards risk and culture 5/24/2020 Copy right reserved 8
  9. 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 5/24/2020 Copy right reserved 9
  10. 10. Developing effective B2B Marketing Program ◼ Communication and branding activities ◼ System buying and selling ◼ Role of services 5/24/2020 Copy right reserved 10
  11. 11. Managing B2B Customer Relationship ◼ The benefits of vertical coordination ◼ Risks and opportunism in business relationship 5/24/2020 Copy right reserved 11
  12. 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 5/24/2020 Copy right reserved 12
  13. 13. Any Queries? Thank you 5/24/2020 Copy right reserved 13

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