Docstoc

Buyer Behavior in Industrial Marketing

Document Sample
Buyer Behavior in Industrial Marketing Powered By Docstoc
					Buyer Behavior in Industrial
        Marketing




For more information please contact
ekaterin a@r esearchoptimizer.com
www.researchoptimizer.com
+972549137013
Buyer B eh avi our
                                                 In       industr ial           mar keting,               the       bu yi n g
                                                 p r oc e s s i s m o r e d i f f i c u l t as c o m p a r e d t o
                                                 c on s u m e r         mar keting.              The            p u r c h as e
                                                 d ec i s i o n s     in       indus trial         marke t ing           ar e
                                                 b as e d o n m a n y f ac t o r s :
                                                         C omplianc e                       wi t h               pr oduct
                                                 s p ec i f i c a t i o n s
                                                         Pr oduct qualit y


            A vai l ab i li t y                                            A c c ep t a b l e p a y m e n t
            T imely s upply                                                C ommerci al t er ms c ost
            A f t er - s a l e s s er v i c e                                  ef f ec t i v e n e s s


     T h e b u y i n g d ec i s i o n s g e n e r a l l y t a k e a l o n g e r t i m e a n d i n v o l v e
     many        i nd i vi d u als    f r om          t ec hnic al,           c ommercial/ mat er ials,                 and
     f inanc e depar tments .




T he r elat ions hips bet ween t he s ellers and buyers ar e highly valued
a n d t h e y b ec o m e s t a b l e i n t h e l o n g r u n b ec a u s e of a h i g h d e g r e e o f
int erdepend enc e.           C h a n g es         ar e     f ew      and        occur       r el at i vel y       s l owl y.
Bu yers c h arg e pr ob l ems in s earc hi n g ou t an d qu al if yi n g s up p li ers.
The      c ost     of    s e l ec t i n g   a         s upplier         wh o       c annot         meet          d el i ver y
r e q u i r e m e n t s or w h o d e l i v e r s a n u n s a t i s f ac t o r y p r o d u c t c a n b e h i g h .
T h u s , t h e p u r c h a s i n g f i r m m u s t b e c e r t a i n of a p o t e n t i a l s u p p l i e r ’ s
t ec h n i c a l , a d m i n i s t r a t i v e , a n d f i n a n c i a l c a p a b i l i t i es .
In c on tr ar y, i n c ons u mer mar keti n g t h e r el at i ons h ip b et we en a b u yer
and a s eller is non -pers onal. C ons umers change their purchasing
h ab its f r eq u en tl y an d t h e b u yi n g d ecis i ons ar e al wa ys b as ed on
p h y s i o l o g i c a l , s oc i a l a n d p s yc h o l o g i c a l n e e d s of t h e m e m b e r s of a
f amily hous ehold.


Chan nel C h aract er isti cs
                                        Invent or y          or      st oc k       c ontr ol        is    ver y        much
                                        i m p o r t a n t f ac t o r i n t h e b u s i n e s s o r g a n i s a t i o n s
                                        t h e r ef o r e t h e d i s t r i b u t i o n c h a n n e l s a r e n e e d e d
                                        mor e        d i r ec t    f r om      the       m a n u f ac t u r e r   to    the
                                        cust omer in industr ial mar ket ing. T her e ar e a
f ew c h an n el alt er n at i ves, wh ic h ar e f eas ib l e i n th e in dus tri al mar ket
t h a n t h e c o n s u m e r m a r k e t as s h o w n b e l o w :




O f t en , t h e m a n u f a c t u r e r s u s e t h e i r o w n s a l e s / m a r k e t i n g p e r s o n n e l t o
s el l t h e p r o d u c t s d i r e c t l y t o m a j o r c u s t o m e r s . B u t , i n c as e of s el l i n g
t o s mall-sc ale c ust omers or geogr aphic ally sc at t er ed mar kets, many
m a n u f ac t u r e r s             us e              either                distr ibut ors/ deal ers,                   or
a g e n t s / r e p r e s e n t a t i v e s , w h i c h a l s o h e l p s i n m i n i m i s i n g t h e c os t of
mar keting.
I n c a s e of c o n s u m e r m a r k e t i n g , t h e c h a n n e l of d i s t r i b u t i o n i s l o n g e r
wit h      multiple          levels        of     i n t e r m e d i a r i es / m i d d l e m e n ,     s inc e        the
hous ehold          c onsumers            ar e   geogr aphic ally              dis pers ed           all    o ver     the
c ou n t r y .


Pro mo ti on al Ch ar act eri st ics
                                I n c o n s u m er m a r k e t i n g , t h e e m p h as i s i s g i v e n o n
                                adver tis ing wher eas, in indus trial ( or bus iness)
                                mar keting,           the       i mp or t anc e          is    g i ven        to      the
                                pers onal         s elling      t hr ough         the     c omp an y’s              s ales
                                f or c e . A s      a r es u l t , a m u c h l a r g e r e x p e n d i t u r e
                                b u d g e t i s p r o v i d e d f or a d v e r t i s i n g i n c o n s u m e r
mar keti n g i n c omp aris on t o i nd ust ri al mar ket in g . A d vert isi n g is us ed
t o l a y a f o u n d a t i o n f or t h e s a l es c a l l r a t h e r t h a n s er v e a s t h e
p r i m a r y c o m m u n i c a t i o n t o o l . S a l e s p e o p l e ac t m o r e a s c o n s u l t a n t s
an d t ec hn ic al p r ob l em s ol vers, ut il i zi n g i n - d ep th pr o duc t kn owl ed g e
a n d t e c h n i c a l u n d e r s t a n d i n g of t h e b u y e r s ’ n e e d s , w h e r e a s i n d u s t r i a l
a d v e r t i s i n g n o r m a l l y s t r es s e s m o r e f ac t u a l a n d t ec h n i c al d a t a . S o m e
in d ustr i al ad ver t is ers us e t el e vis i on t o r eac h p ot en t i al c ons u mers,
the pr imar y means                  of    r eaching t he            mar ket is           t h r o u g h b u s i n es s
magazines,            tr adit ional        tr ade       journals ,          and      d i r ec t      mail.          S ales
p r o m o t i o n ac t i v i t i es t e n d t o c e n t e r o n t r a d e s h o w s , t r a d e f a i r s ,
c at a l o g s a n d c o n d u c t i n g t e c h n i c a l s e m i n a r s .


Pri ce C har act eri st ics

                                    The          pr oduc ts           ar e        s old           thr ough            the
                                    int er mediaries/ middlemen                      to       the          c ons umers
                                    b as e d o n t h e “ P r i c e L i s t ” of t h e m a n u f ac t u r e r or
                                    the      maxi mu m           r et ail      pr ic e        ( MRP)         f or     the
p ac k a g e d p r o d u c t s i n c on s u m e r m a r k e t i n g . S o m e t i m e s , t h e r e t a i l e r
r e d u c e s t h e p r i c e b y p a s s i n g o n t o t h e c o n s u m e r a p a r t of h i s
d i s c o u n t d u e t o d i f f e r e n t d e g r e e s of i n t e n s i t y of t h e c om p e t i t i o n . I n
industr ial            mar keting,      pric e      is     l es s        cr it ic al    f ac t o r s      f or   purchas e
d ec i s i o n s .     C omp etitive        bidding          and          pric e       negot iat ions            ar e       ver y
c om m o n       in indus trial           mar keting and f inanc ing                          arr angements                  ar e
of t e n c o n s i d e r e d p a r t of p r i c i n g p ac k a g e . W h e n t h e r e a r e n o p r i c e
n e g o t i a t i o n s i n c er t a i n G o v e r n m e n t t e n d e r s , t h e c o m p e t i t i v e b i d d i n g
(i. e. qu ot i ng a c omp et it i ve p ric e ag ai n st a t en d er en qu ir y) b ec omes
ver y     impor t ant,         as     only      the      lowes t           bidders         ar e        c on s i d e r e d    f or
p l a c e m e n t of o r d e r s . A l m o s t p r i v a t e s e c t o r a n d s o m e G o v e r n m e n t
or ganis ations , pric e negot iat ions ar e held t o decide the pric es and
t h e v o l u m e of o r d e r s t o b e p l a c e d o n v a r i o u s s u p p l i e r f i r m s . T h e
p aym en t an d ot h er c ommerc i al t erms ar e als o n eg ot i at ed at th e t i me
of p r i c e n e g o t i a t i o n . D e a l e r d i s c o u n t s , a n d v o l u m e d i s c o u n t s o n t h e
p r i c e l i s t of s t a n d a r d i n d u s t r i a l p r o d u c t s a r e w i d e l y u s e d i n i n d u s t r i a l
mar keting.
T h e a b o v e d i s c u s s i o n c l a r i f i es t h a t t h e r e a r e m a n y b a s i c d i f f er e n c e s
e xist      bet ween          c onsumer           and        indus trial           mar ket ing.              B ut ,     thes e
d i f f er e n c e s     in   t er ms     c h a r ac t e r i s t i c s      do     not       make           a    c omplet e
a n a l ys i s . T h e r ef o r e , i t i s n e c e s s ar y t o u n d e r s t a n d t h e c o n c e p t of
i n d u s t r i a l d e m a n d i n t h e m a r k e t t o a n a l ys e c o m p l e t e l y .

				
DOCUMENT INFO
Shared By:
Stats:
views:176
posted:2/12/2012
language:
pages:5
Description: MBA course materials presented in illustated way
Research Optimizer Research Optimizer http://researchoptimizer.com
About