Lecturer – Md Shahedur Rahman Chapter – 3 (Three) Part 2 Buyer Behaviors

Business to Business Buyer Behavior B2b – Still people make the decisions here The buying decision making process for business is more complex because of the number of people involved Buying Center- Buying Center- Group of Individuals who make purchase decision on behalf of a business Users Buyers Influencers (e.g. Engineers) Deciders (Authorize) Gatekeepers (Control the flow of information) These five roles may overlap These five roles may overlap

Factors Affecting Members of Business Buying Centers Organizational Influences Organizational Influences Organization Goals Organization Goals Organization Finance Organization Finance Capital Assets Capital Assets Employees are ready to adopt or not ? Employees are ready to adopt or not ? Recession, growth Recession, growth Position etc. Position etc.

Factors Affecting Members of Business Buying Centers Individual Factors Individual Factors 1. Personality Features 1. Introvert vs. Extrovert 2. Roles and Perceived Roles 1. Perception about the buying process 3. Motivational Levels 1. Recognition 4. Levels of Power 1. Official position 5. Attitude towards risk 1. Low vs. High Risk 6. Levels of Cognitive involvement 1. More or less information prior purchasing 7. Personal Objectives 1. Motives, personality, perceptions

Types of Business to Business Sales A Straight Rebuy A Straight Rebuy Occurs when the firm has previously chosen a vendor and intends to place a reorder Routine process There is no evaluation of alternatives or information

Types of Business to Business Sales (Cont.) A Modified Rebuy A Modified Rebuy Buying team will consider and evaluate alternatives Four reasons Four reasons Dissatisfied with current vendor A new company offers a better buy End of the contract New people in the buying center have limited experience about the product

Types of Business to Business Sales (Cont.) A New Task A New Task Company buys a good or service for the first time No previous experience

B2b Buying Process Problem Recognition Identification of Needs Information Search Establish of Specification Information Search Identify Vendors Evaluation of Alternatives Evaluate Vendors Purchase Decision Select Vendor Purchase Decision Purchase Negotiation Post purchase Evaluation Post Purchase Evaluation

Trends in the Business to Business Buying Environment Emphasis on Accountability Expect tangible result from the money they spend Account executives are always in pressure for a quick result Importance of e-Commerce Sites must be interactive, allowing business customer to gain information Saves time and money for both customers and vendors

Trends in the Business to Business Buying Environment (Cont.) Global Branding Building a powerful brand is important for a successful IMC program Brand presence is practically a necessity in the new global environment ‘It is no longer sufficient to be a great company; you must be a good brand’

Trends in the Business to Business Buying Environment (Cont.) Database Mining Database Mining Computers are being used to access database containing information about customers and prospect Changes in Method of Communication Inter Changes in Method of Communication Inter To make easier for customer to contact the firm Focus on Internal Marketing Communication Focus on Internal Marketing Communication

Dual Channel Marketing consumers businesses Firm sell same goods or services to both consumers and businesses Business tend to be less price sensitive than retail consumers Representing the product in different channel can be different Demand from the two market can be different Use different communication message ? Use different communication message ? Create different Brands ? Create different Brands ? Use multiple channels or Different Channels ? Use multiple channels or Different Channels ?