GROUP MEMBERS – Talat Mehboob Maqsood Iqbal Shahrukh Haider Fawad Imran Vardah Javid SUBMITTED TO Mam. Qurat-ul-Ain

Business market

TOPIC OUTLINE

Business buyer behavior

Business buying process

E-Procurement: Buying on internetInstitutional &

governmental markets

What is business market??

The business buying behavior of the organization that buy goods and services for use in the production of other

products and services or for the purpose of reselling or renting them to others at a profit…

Business Market

Market structure and

demand

Fewer , larger buyers Geogra

phically concentrated

Derived deman

d Inelastic

demand

Fluctuating

demand

Nature of buying unitsMore buyersMore professionals purchasing

efforts

TYPES OF DECISION AND THE DECISION PROCESS

More complex

decisions

Supplier development

• Systematic development of networks of supplier – partners to ensure appropriate and dependable supply of products and materials that they will use in making their own products or resell to others.

Business Buying Situations

Straight Rebury

Modified Rebury

New Task

Inv

olved

Dec

ision

Mak

ing

MAJOR TYPES OF BUSINESS SITUATIONS:-

Straight Re-buy

• The buyer routinely reorder something without any modification..

Modified Re-buy

• The buyer wants to modify product specification, prices, terms and , suppliers.

New task• The buyer purchases a

product or services for the first time..

Participants in the Business buying process:.

users

influencers

buyersdeciders

gatekeepers

The Buying Center

USERS

Those who will use the

product..

INFLUENCERSHelp

define specification and provide

information for

evaluating

alternatives..

BUYERS

They have formal

authority to select suppliers,

and arrange terms of

purchase.

DECIDERS

Have the formal or

informal power to select and approve final

suppliers.

GATE KEEPERS

Control the flow of

information..

MAJORINFLUENCE ON BUSINESS BUYERS:-

The BUSINESS Buying PROCESS

BUSINESS BUYING PROCESSBusiness process by which buyers determine which products and services their organizations need to purchase, and then find, evaluate, and choose among, alternative suppliers and brands.

ProblemRecognition

• First stage in which someone in the company recognize a problem or need that can be met by acquiring a good or a service..

Need description

• Stage in which the company describes the general characteristics and quantity of a needed item.

Product specification

• Stage in which organization decides and specifies the best technical product characteristics for a needed item.

Supplier search

• The stage in which buyer tries to find the best vendors.

Proposal solicitation

• The stage in which the buyer invites qualified supplier to submit proposals.

Supplier selection

• The stage in which the buyers reviews proposals and select a supplier or suppliers..

Order routine specification

• The stage in which the buyer writes the final order with the chosen suppliers..

Performance Review

• The stage of the business in which buyers assesses the performance of the supplier and decides to continue, modify, or drop the arrangement..

E- PROCUREMENT:

E- PROCUREMENT:-

Online purchasingCompany-buying sitesExtranets

WHAT IS E-PROCUREMENT???

Some times refer as (Supplier exchange) is the business to business, business to customer , business to government, business to consumer.. purchase and sale of supplies, work and services. through internet…

E-PROCUREMENT

Advantages◦ Access to new suppliers◦ Lowers costs◦ Speeds order processing and delivery◦ Shares information◦ Sales◦ Service and support

Disadvantageso Can erode relationships as buyers search for new

supplierso Security

Institutional and Government markets:-

Institutional Markets

• Schools, hospitals , nursing homes, and other institutions that provide goods, and services to people in their care..Government Markets

• Government units (federal , state , and local bodies) that purchases, or rent goods and services for carrying out the main functions of government

INSTITUTIONAL AND GOVERNMENT MARKETS

institutional Markets

Low Budget Captive Patrons

Government Markets

Specialized Buying

Outside Publics

Negotiated Contracts

Open Bids

Public Review

Any Question???