Bài giảng Marketing công nghiệp: Chapter 3 - Ph.D. Đinh Tiến Minh

1/2/2017

Chapter 3

Organizational Buying &
Buying Behavior
www.dinhtienminh.net

DINH Tien Minh (Ph.D.)
University of Economics HCMC

Objectives

Understand organizational buying objectives.
Gain knowledge organisational buying process
including the types of buying situation.

Identify the members of decision making unit.
Understand some of models of organizational
buying behavior.

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Outline
3.1 Purchasing Objectives
3.2 Organisational Buying Process
3.3 Types of Purchase or Buying Situations
3.4 The Buying Center
3.5 Models of Organisational Buying Behavior
3.6 Questions and Homework

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3.1. Purchasing Objectives

Buying the right item in the right quantity, at
the right price, for delivery at the right time
and place.
What’s right for each dimension?






Delivery/ Availability
Product quality
Lowest price
Services
Supplier relationship

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3.1. Purchasing Objectives (cont’)

The Firm and Personal objectives.

© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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3.2. Organisational Buying Process
More complex than the consumer decision process
and takes place within formal organization’s budget,
cost, and profit considerations.

Source: Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3rd edition.
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3.2. Organisational Buying Process (cont’)

Stage 1: Anticipate a problem/need and a
general solution
 Need to provide employees with a good cup of coffee
to enhance productivity.

Stage 2: Determine the characteristics and
quantity of a needed good or service
 Offering a coffee system that brews one cup of coffee
at a time according to each employee’s preference.

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3.2. Organisational Buying Process (cont’)

Stage 3: Describe characteristics and the
quantity of a needed good or service
 Firms
need
a
simple
system
for
brewing a good cup of coffee; quantity
requirements are easily correlated to the
number of coffee drinkers.

Stage 4: Search for and qualify potential
sources
 Choice of supplier.

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3.2. Organisational Buying Process (cont’)

Stage 5: Acquire and Analyze proposals
 May involve competitive bidding, especially if the
buyer is the government or a public agency.

Stage 6: Evaluate proposals and Select
suppliers
 Buyers choose proposal best suited to their needs.

 Final choice may involve trade-offs between feature
such as price, reliability, quality, and order accuracy.

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3.2. Organisational Buying Process (cont’)

Method: A Supplier Evaluation System
Attribute
(or Factor)
Quality
Delivery
Price
Service
Flexibility
Total

Weight
(Important)
30
25
15
20
10
100

Supplier
Performance*
0.8
0.4
0.6
0.6
0.2

Supplier Rating
(or Score)
30 x 0.8 = 24
25 x 0.4 = 10
15 x 0.6 = 09
20 x 0.6 = 12
10 x 0.2 = 02
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* The information on the existing supplier’s performance is obtained from departments.
Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3rd edition, p42.
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3.2. Organisational Buying Process (cont’)

Method 2: Use the concept of Balanced Scorecard
(BSC) to evaluate Suppliers’ performance
Translate a company’s mission and strategy into a
set of performance measurements, in which the
Internal-business-process is relevant for evaluating
supplier performance.

Find additional measurements (timely delivery)
that create superior value beside the traditional
factors (price, quality).

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3.2. Organisational Buying Process (cont’)

The Balanced Scorecard (BSC) Framework
Financial
To success financially,
Company should focus on
financial objectives that will
satisfy shareholders.

Customer
Which customer value
company should focus on,
to achieve its mission

Mission
&
Strategy

Internal-BusinessProcess
To satisfy shareholders
and customers, what
business process company
must excel at?

Learning and Growth
How can company improve
and change to achieve its
mission
Robert S. Kaplan & David P. Norton, The Balanced Scorecard, Harvard Business School Press, 1996.
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3.2. Organisational Buying Process (cont’)

Internal-Business-Process
Innovation
Processes
Identify
Customer
needs and
Market

Design,
Develop
Product/
Service

Operations
Processes
Make/

Buy
Product/
Service

Market
Product/
Service

Satisfy
Customer
Needs

Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3rd edition, p43.

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3.2. Organisational Buying Process (cont’)

Stage 7: Select an order routine
 Buyer and Vendor work out best way to process
future purchases.

Stage 8: Obtain feedback and Evaluate
performance
 Buyers measure vendors’ performance.
 Larger firms are more likely to use formal evaluation
procedures.
 Some firms rely on outside organizations to gather
quality feedback and summarize results.
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3.3. Types of Purchase or Buying Situations

Source: Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3rd edition.
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3.3. Types of Purchase or Buying Situations

Source: Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3rd edition.
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3.3. Types of Purchase or Buying Situations
Classifying buying situations: The buying behavior
involves degree of effort involved in the decision and
the levels within the organization in which these
decisions are made.
1. Straight Rebuying
 A recurring purchase decision in which a customer
reorders a product that has satisfied needs in the past.
 Marketers maintaining good relationships with customers
can go a long way toward ensuring straight re-buy (Highquality products, superior service, prompt delivery).

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3.3. Types of Purchase or Buying Situations

2. Modified Rebuying
 May occur if supplier has let a rebuy circumstance
deteriorate because of poor service or delivery
performance.

3. New-Task Buying
 First-time or unique purchase situations that require
considerable effort by the decision makers.
 Often requires purchaser to consider alternative offerings
and vendors.

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3.3. Types of Purchase or Buying Situations

The Buygrid Framework for Organisational
Buying Situations
Buy phases (Phases in Buying Process)
1. Problem recognition
2. Characteristics and quantity of needed item
3. Description or specification of needed item
4. Search for and qualifications of potential suppliers
5. Obtaining and analyzing supplier proposals
6. Evaluation of proposals and selection of suppliers

New
Task
Yes
Yes
Yes
Yes
Yes
Yes

7. Selection of an order routine
8. Performance feedback and evaluation

Yes
Yes

Buying Situations
Modified Straight
Rebuy
Rebuy
Maybe
No
Maybe
No
Maybe
No
Yes
No
Yes
Maybe
Yes

No
Yes
Yes

Maybe
Yes

Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3rd edition, p46.
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3.4. The Buying Center

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3.4. The Buying Center (cont’)

The organizational buying process is
typically influenced by many individuals.
The degree of involvement of individuals
varies for different buying situations.

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3.4. The Buying Center (cont’)

If the industrial salespeople can answer the
following questions correctly, he has a high
probability of getting business:
 What type of buying situation the customer is in?
 Which individuals are involved in the purchase
decision process and who are the key influencers?
 What criteria would be used by the decisionmaking-unit, and if this is not decided, then what
criteria are important to each member?

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3.5. Models of Organisational Buying Behavior

Nguồn: Adapted from F.E. Webster, Jr and Y. Wind, “A General Model of Organisational Buying Behaviour”,
Journal of Marketing, 36, 2 (April, 1972), 12-19.
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3.5. Models of Organisational Buying Behavior

Nguồn: Adapted from Jagdish N. Sheth, “A Model of Industrial Buying Behaviour”, Journal of Marketing, 37,
Oct, 1973, 50-56.
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3.5. Models of Organisational Buying Behavior

Nguồn: Jean Mary Choffray & Gary L. Lilien, “Assessimg response to Industrial Marketing strategy”, Journal
of Marketing, 42, April 1978, 22.
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3.6. Questions and Homework
1. At what phase(s) of the industrial buying process the
business marketer should get involved and why?
2. Is the organizational buying process for services the
same as that for physical products? Explain.
3. Describe any one of the techniques used by
customer organizations for evaluating performances
of suppliers? Why is it importance for the sales
person or the supplier firm to understand clearly the
supplier evaluation system followed by the customer
organization?

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