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business marketbuying situationsDecision-making
B2b relationships
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Organizational buying refers to
the decision-making process by which
formal organizations establish the needfor purchased products
and services, and
identify, evaluate, and choose amongalternative brands and
suppliers.
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Fewer, larger buyers Close supplier-
customer relationships Professional
purchasing Many buying
influences
Multiple sales calls Derived demand
Inelastic demand Fluctuating demand Geographically
concentrated buyers
Direct purchasing
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Straight rebuy
Modified rebuy
New task
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Turnkey solutiondesired;
bids solicited
Primecontractors
Second-tiercontractors
Systemsubcomponents
assembled
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Initiators
Users
Influencers
Deciders
Approvers
Buyers
Gatekeepers
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Who are the major decision participants?
What decisions do they influence?
What is their level of influence? What evaluation criteria do
they use?
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Small Sellers
Large Sellers
Key Buying
Influencers
Multilevel
In-depthSelling
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Problem recognition General need description
Product specification Supplier search Proposal solicitation
Supplier selection
Order-routine specification Performance review
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Websites organized using vertical hubs
Websites organized using functional hubs
Direct extranet links to major suppliers Buying alliances
Company buying sites
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Stocklesspurchase plans
Vendor-managedinventory
Continuous
replenishment
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Expertise
LikeabilityTrustworthiness
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Availability ofalternatives
Supply marketdynamismComplexity ofsupply
Importance ofsupply
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Basic buying and
selling Bare bones Contractual
transaction
Customer supply
Cooperative systems
Collaborative Mutually adaptive Customer is king
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Specific Investments
Opportunism is some form of
cheating or undersupply relative to animplicit or explicit
contract.
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Contract Farming Pepsi Procuring from Cooperatives Amul Use ICT
for procurement ITC
Governments and Institutional Markets
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