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Kotler on Marketing
Many businesses are wisely turning their suppliers and distributors into valued partners.
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Chapter Objectives
In this chapter, we focus on six questions:
What is the business market, and how does it differ from the consumer market? What buying situations do organizational buyers face? Who participates in the business buying process? What are the major influences on organizational buyers? How do business buyers make their decisions? How do institutions and government agencies do their buying?
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If you were tasked with marketing a product or service to an organization, would you attempt to initially contact the purchasing department, or potential users of your companys offerings? Why? Would the product you were selling make a difference? Why?
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What are some of the benefits to an organization that can be derived from a single source solution, or a systems buying arrangement with a prime contractor? What are some of the potential pitfalls? What can the company do to protect itself from these hazards?
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The e-hub Plastics.com home page offers buyers and sellers of plastics a marketplace plus news and information
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Purchasing-Performance Evaluation and Buyers Professional Development Improved Supply Chain Management Lean Production
Just-in-time
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Procurement Orientation
Materials requirement planning (MRP)
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Supplier Search
Vertical hubs Functional hubs Direct external links to major suppliers Buying alliances
Company buying sites Request for proposals (RFPs)
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Table 8.1: Buygrid Framework: Major Stages (Buyphases) of the Industrial Buying Process in Relation to Major Buying Situations (Buyclasses)
Buyclasses New Task 1. Problem recognition 2. General need description 3. Product specification Buyphases 4. Supplier search Yes Yes Yes Yes Modified Rebuy Maybe Maybe Yes Maybe Straight Rebuy No No Yes No
5. Proposal solicitation
6. Supplier selection 7. Order-routine specification 8. Performance review
Yes
Yes Yes Yes
Maybe
Maybe Maybe Yes
No
No No Yes
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Supplier Search
Vertical hubs Functional hubs Direct extranet links to major suppliers Buying alliances
Company buying sites Request for proposals (RFPs)
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Supplier Flexibility
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Order-Routine Specification
Blanket contract Stockless purchase plans
Performance Review
Buyflow map
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