Marketing Implications

Phases 3 Determining needed item New Task Provide detailed product/service information to decision makers In supplier: maintain dependability; out supplier: demonstrate ability to perform task Modified Rebuy same as phase 2 Straight Rebuy Same as phase 1

Searching for & qualifying supplier

In supplier: watch for problems; out supplier: demonstrate ability to perform task

Same as phase 1

Marketing Implications
Phases New Task Modified Rebuy Straight Rebuy

5 Analyzing proposal

Understand details of problem/nee ds; make timely proposals.

Understand Make timely details of proposals problem/nee ds; make timely proposals

Buying centers
A decision-making unit may consists of only one person, but it is normally a group of individuals who share a common goal or goals which the decision will hopefully help them to achieve, and who share the risk arising from decision. In industrial marketing, these decision makers are referred to as the buying center.

Identifying Buying Center Members

The buying center is an informal, crossdepartmental decision making unit in which primary objective is the acquisition, impartation, and processing of relevant purchasing related information. People within an organization become involved in buying center for one of the two reasons They have formal responsibility They have importance as a source of information

 Marketing: When a purchasing decision has an effect on the marketability of a firms product Manufacturing: Involved when new products or models are being developed Responsible for determining the feasibility and economic considerations of producing end products. Continuous feed back to the purchasing department on the performance of suppliers makes manufacturing key influencer in the selection and retention of suppliers and the allocation of quantities among suppliers.

 Research and Development: Involved in initial development of product and processes and set broad specifications for component and material criteria They are important to marketers for two major reasons:
The earlier the marketer becomes involved in the development process, the greater the chance of incorporating his product into the final design. By understanding the direction in which customers are moving, marketers are better able to plan the direction of their own business.