• DEFINITION:– AN ORGANISATIONAL BUYING IS A PROCESS BY

WHICH A COMPANY/ORGANISATION ESTABLISHES A NEED FOR PURCHASING PRODUCTS AND CHOOSE AMONG COMPETING BRANDS AND SUPPLIERS.

– REASON TO BUY PRODUCT:• IN PRODUCTION OF ANOTHER PRODUCT• TO SELL• RENTED• SUPPLIED TO OTHERS

DIFFER BETWEEN CONSUMER AND INDUSTRIAL BUYING BEHAVIOR

AREAS INDUSTRIAL CONSUMERBUYER BEHAVIOR FUNCTIONAL

INVOLVEMENTFAMILY INVOLVEMENT

RATIONAL/TASK MOTIVES

SOCIAL/PSYCHOLOGICAL MOTIVES PREDOMINATE

TECHNICAL EXPERTISE LESS TECHNICALINTERPERSONAL,STABLE RELATION

NON PERSONAL RELATION TO SOME EXTENT

DECISION MAKING DISTINT, OBSERVABLE STAGES

UNOBSERVABLE MENTAL STAGESAS A MARKETER YOU JOB IS TO IDENTIFY INDIVIDUALS WHO

ARE INVOLVED IN PURCHASING DECISION PROCESS.

• PRIMARY ROLES– DECIDERS: ORGANISATIONAL MEMBERS WHO

DECISION MAKING POWERS: VICE PRESIDENT FINANCE

– INFLUENCERS: INFLUENCE THE DECISION MAKING PROCESS BY PROVIDING INFORMATION ON CRITERIA FOR BUYING CONSULTANTS: Eg. INSIDE THE ORGANIZATION: R AND D SPECIALIST AND OUTSIDE: CONSULTANTS

• SECONDARY ROLES:– USERS: THEY USE SO THEY INITIATE THE

PURCHASE PROCESS: WORKERS– BUYERS: HIGH LEVEL OFFICERS, MAJOR ROLE IS

SELECTION OF SUPPLIERS AND NEGOTIATING PURCHASES . Eg PURCHASE DEPARTMENT.

– GATEKEEPERS: CONTROL THE FLOW OF INFO. Eg. RECEPTIONIST, SECRETARY.

• IMPORTANT ASPECT OF THIS MODEL– DIFFERENCE BETWEEN THE INDIVIDUALS INVOLVED.– JOINT DECISION MAKING– PRODUCT SPECIFIC FACTORS– ORGANISATIONAL FACTORS AFFECTING PURCHASE.– SITUATIONAL FACTORS– WAYS OF INFORMATION SEARCH– CONFLICT RESOLUTION AMONG INDIVIDUALS

• FOCUSSES ON THE INTERACTIONS THAT TAKE PLACE IN PROCESS OF NEGOTIATIONS.– 4 BASIC ELEMNTS ARE SAID TO CONTRIBUTE TO

THE INTERACTION BETWEEN BUYERS AND SELLERS.• THE INTERACTION PROCESS• THE PARTICIPANTS• THE INTERACTION ENVIRONMENT• THE ATMOSPHERE CREATED BY THE INTERACTION.

1. THE INTERACTION PROCESS: 2. ENVIRONMENT: Market Structure,

Dynamism, Internationalisation, Position in manufacturing channel, Social system.

3. ATMOSPHERE: Power/dependence, Cooperation, Closeness, Position in the manufacturing channel, Social system