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Shailendra Dasari
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Decision making process by whichorganizations establish the need forpurchased products and services and identify, evaluate and choose among alternativebrands and suppliers.
Industrial(B2B) Marketing:
Marketing of goods and services to
organizations Industrial products are used in the production
of other products*
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Relatively few buyers and sellers Transactions are in bulk
Demand for industrial products is a derived
demand and therefore subject to fluctuations Relatively price inelasticPED.bmp
Professional/rational purchase behavior
More receptive to personal selling as
compared to advertising
http://localhost/var/www/apps/conversion/tmp/scratch_3/PED.bmphttp://localhost/var/www/apps/conversion/tmp/scratch_3/PED.bmp8/12/2019 5.Analyzing Business Markets(R1)
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Relationship orientation Multiple buying influences
Geographical concentration of buyers and
suppliers Missionary selling
Shorter distribution channels
Q. What is oligospony?
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Straight rebuy
Modified rebuy
New task
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Also known as systems buying Goods and services are bundled together
Eg. Supplier of PCs also taking care of
installation and maintenance Custom built assemblies(KLT tubes
developing chassis for Scorpio)
Turn-key projects
Build, Operate and Transfer(BOT)
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Initiators
Users
Influencers
Deciders
Approvers
Buyers
Gatekeepers
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The Buying Center(Term coined byWebster and Wind):All individuals andgroups that participate in the purchase
decision making processSeveral people can occupy a given role and
one person may occupy multiple roles
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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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1.Problem recognition2.General need description
3.Product specification
4.Supplier search5.RFP(Request for Proposal)
6.Supplier selection(evaluation of proposals,reverse auctions)
7.Release of PO8. Evaluation and rating of vendors
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Institutions : Schools, colleges , hospitals ,old-age homes ,hostels etc
Low budgets . Captive customers.
Government : Major buyer . Operate throughtenders . Lot of documentation and paperwork.
Large government projects : Global tenders
are floated.Examples?
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Direct extranet links to major suppliers Buying alliances Company buying sites Online trading exchanges Advantages: Reduced cost of transactions More efficient purchasing/selling Reduced time between order and delivery Flip side:
Erosion of one-to-one relationships Security issuesQ. What are reverse auctions?
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Availability ofalternatives
Supply marketdynamism
Complexity ofsupply
Importance ofsupply
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KAM VMI
JIT
KANBAN 100PPM/Zero Defects
Strategic Partnerships
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