2.0BUSINESS MARKET VS. CONSUMER MARKET1
3.0THE BUYING CENTRE3
3.1TYPES OF BUYING SITUATIONS3
3.2THE BUYING-DECISION PROCESS4
3.3COMPOSITION OF THE BUYING CENTRE5
3.4FACTORS AFFECTING DECISIONS IN BUYING CENTER5
aCharacteristics of the buying situation6
b.Personal characteristics of the individuals7
3.5BUYING CENTRE MEMBERS ROLES8
3.6FACTORS INFLUENCING THE BUYING CENTRE.9
3.7BUYING CENTRE DYNAMICS11
4.0MODELS OF ORGANIZATIONAL BUYING BEHAVIOR12
a)The Webster and Wind Model12
b)The Sheth Model13
5.0IMPROVING BUYING CENTER EFFECTIVENESS16
6.0MANAGERIAL IMPLICATIONS TO THE MARKETER17
7.0WAYS OF REDUCING THE EFFECTS OF GATEKEEPING IN THE BUYING PROCESS18
Industrial marketing consists of all activities involved in the marketing of products and services to organizations that use products and services in the production of consumers or industrial goods and services. Such organizations include, commercial enterprises, profit and not for profit institutions, government agencies and resellers.
In the industrial market, markets are relatively concentrated and channels of distribution are shorter, buyers are well informed, highly organized and sophisticated in purchasing techniques and many influencers contribute to the purchasing decisions.
Unlike in the consumer markets, industrial marketers must define their target markets, determine their needs and come up with products designed to satisfy the need of the market. In making decisions, purchasing managers must coordinate with numerous people with diverse organizational responsibilities who apply different criteria to purchasing decisions.
The industrial marketers therefore have an obligation to develop effective marketing strategies to reach organizational buyers by understanding the nature of industrial buying. This entails knowledge of the different types of buying situations that organizations encounter and the process that buyers go through in reaching purchasing decisions. They must also, understand on how these decisions are affected by different members of the firm and the criteria they apply in making purchasing decisions.
A major task therefore to a marketer in industrial buying segment is to identify those individuals who are in a way involved in the purchasing decision process. This decision making unit may consist of only one person but it is normally a group of individuals who share a common goal. The market characteristic in this sector is dynamic compared to the consumer buying centre.
Size of the market. Compared to the consumers buying centre, the industrial market is composed of relatively fewer buyers. This is in contrast to the many households which is geographically dispersed
2.0BUSINESS MARKET VS. CONSUMER MARKET
The basics of marketing management apply to both consumer and industrial marketing. However the industrial markets are geographically concentrated, the customers are relatively fewer, the distribution channels are short, the buyers (or customers) are well informed the buying organizations are highly organized and use sophisticated purchasing techniques.
The purchasing decisions are based on observable stages in industrial marketing. Industrial marketing is more a responsibility of general management in comparison to consumer marketing. Sometimes, it is difficult to separate industrial marketing strategy from the corporate (company) strategy. But in case of consumer marketing, many times the changes in marketing strategy are carried out within the marketing department, through changes in advertising, sales promotion, and packaging strategies.
Table 1.1: Differences between Industrial and Consumer Marketing Sr No.BasesIndustrial Markets Consumer Markets