B2B Marketing – Chapter 3

major stages of the organizational buying process
major stages of the organizational buying process
3 types of buying situations
1) New Task
2) Modified Rebuy
3) Straight Rebuy
new-task buying situation
organization decisions makers perceive the problem or need as totally different from previous experiences
buying-decision approaches (for new task)
1) judgmental new task
2) strategic new task
modified rebuy situation
organizational decision makers feel they can derive significant benefits by reevaluating alternatives
limited problem solving
best describes the decision-making process
buying-decision approaches (for modified rebuy)
1) Simple modified rebuy
2) Complex modified rebuy (involves a large set of choice alternatives and poses little uncertainty but the range of choice enhances the buyer’s negotiating strength)
strategy guidelines
in a modified rebuy the direction of the marketing effort depends on whether the marketer is an “in” or an “out” supplier
strategy implications
the business marketer should attempt to identify purchasing patterns that apply to the firm
straight rebuy situation
appropriate when there is a continuing or recurring requirement, buyers have substantial experience in dealing with the need and require little or no new information
routine problem solving
the decision process organizational buyers emply in the straight rebuy
operating resources
the goods and services needed to run the business such as computer and office supplies, maintenance and repair items, and travel services.
buying decision approaches (for straight rebuy)
1) Causal
2 Routine low-priority
Causal purchases
involve no information search or analysis and the product or service is of minor importance
Routine low-priority decisions
decisions are somewhat more important to the firm and involve a moderate amount of analysis
Forces shaping organizational behavior
1) environmental forces:
economic influences
technological influences

2) organizational forces:

economic influences
because of the derived nature of industrial demand, the marketer must be sensitive to the strength of demand in the ultimate consumer market
technological influences
rapidly changing technology can restructure an industry and dramatically alter organizational buying plans
Strategic priorities in purchasing
1) aligning purchasing with strategy (not just buyers)
2) exploring new value frontiers (it’s not just about price)
3) putting suppliers inside (the best value chain wins)
4) pursuing low-cost sources (a world worth exploring)
offer strategic solutions
as purchasing assumes a more strategic role, the business marketer must understand the competitive realities of the customer’s business and develop a value proposition that advance its performance goals
Contributing factors of centralization of procurement
1) centralization can better integrate purchasing strategy with corporate strategy, and e-procurement software tools now enable managers to monitor and analyze corporate spending and data in minute detail

2) an organization with multiple plant or office locations can often cut costs by pooling common requirements

3) the nature of the supply environment also can determine whether purchasing is centralized

4) the location of purchasing in the organization often hinges on the location of key buying influences

Centralization vs Decentralization
decisions are made at the TOP of the organization, or made at the lower levels
evaluative criteria
specifications that organizational buyers use to compare alternative industrial products and services
selective processes
1) selective exposure
2) selective attention
3) selective perception
4) selective retention
selective exposure
The process by which individuals screen out messages that do not conform to their own biases
selective attention
the focusing of conscious awareness on a particular stimulus, as in the cocktail party effect
selective perception
the phenomenon that people often pay the most attention to things they already agree with and interpret them according to their own predispositions
selective retention
a process whereby a consumer remembers only that information that supports personal beliefs