Business Buying Behavior
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Transcript of Business Buying Behavior
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BUSINESS BUYING BEHAVIOR
Sonam MhajanMahendra YadavMilan BirDevendra Singh
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WHAT WILL WE LEARN IN THIS UNIT:-Types of Business Consumers
Buying Center
Buying Motives Of Business Buyers
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What will we learn in this unit:-Business
Buying Process
Types Of Business Buying
Models for Market Segmentation
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What is Business Market?
Business markets involve many more dollars and items do consumer markets.
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Types of Decisions & the Decision Process
Types of Decisions & the Decision Process
Characteristics of Business MarketsCharacteristics of Business Markets
Market Structure and DemandMarket Structure and Demand
Nature of the Buying UnitNature of the Buying Unit
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Market structure
and Demand
Fewer, Larger Buyers
Geographically
Concentrated
Derived Demand from
consumers
Inelastic Demand
Fluctuating Demand
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Nature of the Buying Unit
More Buyers
More Professional Purchasing efforts
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Types of decision & decision process
More complex
decisions
Process is more
formalized
Build close long-term
relationships
Buyer and seller are more dependent on
each other
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Types of Business
Consumers
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Participants in the Business BuyingProcess: The Buying Center
Buying Center
Buying Center
UsersGatekeepers
Deciders Influencers
Buyers
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Marketing
Production and Operations
Research and Development
Role of Various Functional
Departments in Purchase Process
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Buying Motives Of Business Buyers
Efficiency
Economy
Good QualitySimplicity
Sale ability
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Buying Motives Of Business Buyers
Ease of Operation
Space Saving
ObsolescenceSafety
Cleanliness
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Major Types of Buying Situations:-
The buyer routinely reorders something without any
modifications. Straight Re-buy
Modified Re-buy
New Task
The buyer wants to modify product specifications,
prices, terms, or suppliers.
The buyer purchases a product or service for the
first time.
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Characteristics of theThree Types of Buying Decisions:-
Newness of Problem or Need
Information Requirements
Information Search
Consideration of New Alternatives
Multiple Buying Influence
Financial Risks
Straight
RebuyLow
Minimal
Minimal
None
Very Small
Low
Routine response
Modified
RebuyMedium
Moderate
Limited
Limited
Moderate
Moderate
Limited prob.
solving
New TaskHigh
Maximum
Extensive
Extensive
Large
High
Extended prob
solving
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Stages in the BusinessBuying Process:-
Problem RecognitionProblem Recognition
General Need DescriptionGeneral Need Description
Product SpecificationProduct Specification
Supplier SearchSupplier Search
Proposal SolicitationProposal Solicitation
Supplier SelectionSupplier Selection
Order Routine SpecificationOrder Routine Specification
Performance ReviewPerformance Review
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Types Of Business Buying:-
Competitive Tendering
Non-Tender Purchasing
Reverse Auction
Purchasing Card
Supply Chain Management
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Major Influences on Business Buying:-
EnvironmentalEconomic, Technological, Political, Competitive & Cultural
EnvironmentalEconomic, Technological, Political, Competitive & Cultural
OrganizationalObjectives, Policies, Procedures,
Structure, & Systems
OrganizationalObjectives, Policies, Procedures,
Structure, & Systems
InterpersonalAuthority, Status, Empathy &
Persuasiveness
InterpersonalAuthority, Status, Empathy &
Persuasiveness
IndividualAge, Education, Job Position, Personality &
Risk Attitudes
IndividualAge, Education, Job Position, Personality &
Risk Attitudes
BuyersBuyers
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Business Market
Segmentation
•Market Segment is a group of people or organizations sharing one or more characteristics that cause them to have similar product needs.
Why it needs?
•Sustainable Competitive Advantage.•‘What’ and ‘Why’ of segmentation.
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CRITERIA FOR BUSINESS MARKET SEGMENTATION:-
Measurability
Sustainability
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Models for Market Segmentation:-
Two-stage market segmentationNested Approach to segmentation
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Two-stage market segmentation:-
Macro-segmentation
Micro-segmentation
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Macro-segmentation:-
Organization size
Geographic Location
Industry Classificatio
n
Purchasing Situation
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Two-stage market segmentation:-
Benefit Segmentatio
n
Type of institution
Customers’ business potential
Purchasing Strategies
Supply chain Position
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Macro-segmentation:-Buying
decision criteria
Purchasing strategy
Structure of decision
making unit
Perceived importance of the product
Attitude towards the
supplier
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Nested Approach to segmentation:-
Demographics
Operating variables
Purchasing Approaches
Situational factors
Buyers’ personal characteristics
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What we learnt in this unit:-T
ypes of Business Consumers
Buying Center
Buying Motives Of Business Buyers
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What we learnt in this unit:-
Business
Buying Process
Types Of Business Buying
Models for Market Segmentation
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