Transcript Organisations as Customers

Organisations as Customers
Week 4 Lecture 3
Chapter 19
Key Points of Buyer Behaviour in
Organisations
•
•
•
•
•
•
What do organisations buy?
Organisations are made up of individuals!
Purchasing Situations
DECISION MAKING PROCESS
DECISION MAKING UNIT -Buying centre
FIRMOGRAPHICS
Organizational Buyers
• Types
– Industrial
– Reseller
– Government and nonprofit organizations
• Purchase types
– Straight rebuy
– Limited decision
making
– Extended decision
making
• Characteristics
–
–
–
–
Greater involvement
Bureaucracy
Long term relationships
Price is important but
may not be the most
important factor
Organisational Culture
External(ised) Factors
• Firmographics – Demographics
•
•
•
•
•
•
Size Scale...
Activities – Organisational Goals
Location
Industry Structure / History
Organisational composition
Political Factors - Trains Bombardier
McKinsey 7 S’s framework for
organisational culture
•
•
•
•
•
•
•
Structure
Staff
Systems
Strategy
Skills
Style
Shared Values
Organisations are made up of
individuals
• Organisations tend to recruit like minded
people.
• And or train people in their ways and mores..
• Importance of senior management in setting
the tone.
Organisational Values – innovative
organisation
•
•
•
•
•
•
Risk taking – admired and rewarded.
Competition is more important than co-operation
Hard work comes before leisure
Individual efforts take precedence over collective efforts
Any problem can be solved
Active decision making is important; passive decision makers
will not survive
• Change is encouraged and actively sought
• Performance is more important than rank or status
Organisational Differences
•
•
•
•
•
•
Ownership
Shareholders
Structure Hierarchical ? Flat?
Communication Systems
Responsibility
Freedom to make mistakes.
Differences between Consumer and
Organisational Buying Decisions
– Quantity
– Value
– Risk
– Process – DMU
Buying Situations
• Straight Rebuy
• Modified Rebuy
• New Buy
Buying Situations
Straight Rebuy
An organisational purchase situation where
standard items are repurchased often under a
contract; or items of a commodity type.
Packaging – Ingredients - Components
Purchase is routine often automatic - EPOS.
Items often subject of annual negotiation
Buying Situations Modified Rebuy
• Product is modified
• Market situation may have changed.
• Significant supplier changes
Buying Situations
- New Buy
• Also known as New Task.
• Organisation is purchasing for the first time goods or
services or hybrid.. For the first time...Often of major
significance, risk , impact..
• New machinery – 3D printer? Phone system – tablets
for all, new advertising media / promotional agency –
website?
The Decision Making Unit
•
•
•
•
Gatekeeper
Decider
User
Influencer
Organisational Buying Situations
Real examples
• New Advertising Agency
• New Display Boxes
-