Post on 15-Apr-2017
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???