FIGURE 4.3
Stages of organizational buying
agents, and others, the buyer identifies and prioritizes important product charac-
teristics. Table 4.1 lists several sources of
for many industrial cus-
tomers. Armed with
product knowledge, this individual is capable of
addressing virtually all the
concerns of a typical customer. To a
lesser extent, trade advertising provides valuable
to smaller or iso-
lated customers. Noteworthy is the extensive use of direct marketing techniques
(for example, toll-free numbers and information cards) in cor.junction with
trade ads. Finally, public relations plays a significant role through
placement
of stories in various trade journals.
3. Product specification. Technical specifications come next.
is usually the
responsibility of the engineering department. Engineers design several alternatives,
depending on the priority list established earher.
4. Supplier search. The buyer now tries [0 identify the most appropriate vendor. The
buyer can examine trade directories, perfonn a computer search, or phone other
companies for recommendations. Marketers can
in this stage by con-
tacting possible opinion leaders and soliciting support or by contacting the buyer
directly. Personal selling plays a major role at this
5. Proposal solicitation. Qualified suppliers are next invited to submit proposals.
Some suppliers send only a catalog or a sales representative. Proposal develop-
is a
task that requires extensive research
skilled wtiting and
presentation. In extreme cases, such proposals are comparable to
mar-
keting strategies found in the consumer sector.
ORGANIZATIONAL BUYER BEHAVIOR
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TABLE 4.1
Industrial Buyer Information Sources
Source
Description
Salespeople
Sales personnel representing manufacturers or distributors of the product in
question.
Technica l so u rces
Engineering types of personnel internal or external to the subject's firm .
Personnel in buyer's firm
Peer group references (e.g. , other purchasing agents in the subject's firm) .
Purchasing agents in other companies
Peer group references external to the buyer 's firm.
Trade association
Cooperatives voluntarily joined by business competitors designed to assist its
members and industry in dealing with mutual problems (e.g., National
Association of Purchasing Management ).
Advertising in trade journ als
Commercial messages placed by the manufacturer or distributor of the
product in question .
Articles in trade journals
Messages relating to the product in question but not under the control of the
manufacturer or distributor.
Vendor files
Information perta ining to th e val ues of var ious sources of supply as developed
and maintained by the buyer 's firm.
Trade registers
Buyer guides providing listings of suppliers and other marketing information
(e.g., Thomas'Register).
Product literature
Specific product and vendor information supplied by the manufacturing or
distributing firm.
6. Supplier selection. At this stage, the various proposals are screened and a choice
is made. A significant part of this selection is evaluating the vendor. One study
indicated that purchasing managers felt that the vendor was often more important
than the proposal. Purchasing managers listed the three most important charac-
teristics of the vendor as delivery capability, consistent quality, and fair price.
Another study found that the relative importance of different attributes varies with
the type of buying situations.
For example, for routine-order products, delivery, reliability, price, and sup-
plier reputation are highly
These factors can serve as appeals in sales
presentations and in trade ads.
7. Order-routine specification. The buyer now writes the final order with the cho-
sen supplier, listing the technical specifications, the quantity needed, the warranty,
and so on .
8. Performance
In this final stage, the buyer reviews the supplier's per-
formance. This may be a very simple or a very complex process.
THE FUTJRE OF THE CONSUMER
Experts say consumers in the new millennium will throw some sur-
pris ing twists and turns into the business of target marketing, over-
turning some of the traditiona l thinking about what we'll buy, how
we'll live, and where we'll work. ''The 21st century will be the century
of the consumer," says Roger Blackwell, a professor of marketing.
"Marketers will have to push their understanding beyond knowing
what people b u y to knowing why they buy." The 2010s will be the
"Lin ked Decade ," defined by a busy, mature, ethnically heterogeneous
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