Buying Centers
TABLE OF CONTENT
1.0 INTRODUCTION 1
2.0 BUSINESS MARKET VS. CONSUMER MARKET 1
3.0 THE BUYING CENTRE 3
3.1 TYPES OF BUYING SITUATIONS 3
3.2 THE BUYING-DECISION PROCESS 4
3.3 COMPOSITION OF THE BUYING CENTRE 5
3.4 FACTORS AFFECTING DECISIONS IN BUYING CENTER 5 a Characteristics of the buying situation 6
b. Personal characteristics of the individuals 7
3.5 BUYING CENTRE MEMBERS ROLES 8
3.6 FACTORS INFLUENCING THE BUYING CENTRE. 9
Environment. 9
Organizational: 10
3.7 BUYING CENTRE DYNAMICS 11
4.0 MODELS OF ORGANIZATIONAL BUYING BEHAVIOR 12
a) The Webster and Wind Model 12
b) The Sheth Model 13
5.0 IMPROVING BUYING CENTER EFFECTIVENESS 16
6.0 MANAGERIAL IMPLICATIONS TO THE MARKETER 17
7.0 WAYS OF REDUCING THE EFFECTS OF GATEKEEPING IN THE BUYING PROCESS 18
8.0 CASE STUDY 19
9.0 CONCLUSION 23
REFERENCE: 25
1.0 INTRODUCTION
Industrial marketing consists of all activities involved in the marketing of products and services to organizations that use products and services in the production of consumers or industrial goods and services. Such organizations include, commercial enterprises, profit and not for profit institutions, government agencies and resellers.
In the industrial market, markets are relatively concentrated and channels of distribution are shorter, buyers are well informed, highly organized and sophisticated in purchasing techniques and many influencers contribute to the purchasing decisions.
Unlike in the consumer markets, industrial marketers must define their target markets, determine their needs and come up with products designed to satisfy the need of the market. In making decisions, purchasing managers must coordinate with numerous people with diverse organizational responsibilities who apply different criteria to purchasing decisions.
The industrial marketers therefore have an obligation to develop effective marketing strategies to reach organizational buyers by understanding the
1.0 INTRODUCTION 1
2.0 BUSINESS MARKET VS. CONSUMER MARKET 1
3.0 THE BUYING CENTRE 3
3.1 TYPES OF BUYING SITUATIONS 3
3.2 THE BUYING-DECISION PROCESS 4
3.3 COMPOSITION OF THE BUYING CENTRE 5
3.4 FACTORS AFFECTING DECISIONS IN BUYING CENTER 5 a Characteristics of the buying situation 6
b. Personal characteristics of the individuals 7
3.5 BUYING CENTRE MEMBERS ROLES 8
3.6 FACTORS INFLUENCING THE BUYING CENTRE. 9
Environment. 9
Organizational: 10
3.7 BUYING CENTRE DYNAMICS 11
4.0 MODELS OF ORGANIZATIONAL BUYING BEHAVIOR 12
a) The Webster and Wind Model 12
b) The Sheth Model 13
5.0 IMPROVING BUYING CENTER EFFECTIVENESS 16
6.0 MANAGERIAL IMPLICATIONS TO THE MARKETER 17
7.0 WAYS OF REDUCING THE EFFECTS OF GATEKEEPING IN THE BUYING PROCESS 18
8.0 CASE STUDY 19
9.0 CONCLUSION 23
REFERENCE: 25
1.0 INTRODUCTION
Industrial marketing consists of all activities involved in the marketing of products and services to organizations that use products and services in the production of consumers or industrial goods and services. Such organizations include, commercial enterprises, profit and not for profit institutions, government agencies and resellers.
In the industrial market, markets are relatively concentrated and channels of distribution are shorter, buyers are well informed, highly organized and sophisticated in purchasing techniques and many influencers contribute to the purchasing decisions.
Unlike in the consumer markets, industrial marketers must define their target markets, determine their needs and come up with products designed to satisfy the need of the market. In making decisions, purchasing managers must coordinate with numerous people with diverse organizational responsibilities who apply different criteria to purchasing decisions.
The industrial marketers therefore have an obligation to develop effective marketing strategies to reach organizational buyers by understanding the