Principles and Practice of Marketing

David Jobber

Chapter 4
Understanding Organizational Buying Behaviour
 Buy phases: the organizational
decision-making process
Recognition of a problem (need)

Determination of specification and quantity of needed item

Search for and qualification of potential sources

Acquisition and analysis of proposals

Evaluation of proposals and selection of supplier(s)

Selection of an order routine

Performance feedback and evaluation

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 2

 Influences on organizational
purchasing behaviour

Buy class Product type

● straight ● product
re-buy constituents
● modified Organizational ● product
re-buy buyer facilities
● new task ● MROs

Importance
of purchase

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 3

 Reverse marketing

Supplier sells by taking initiative

Traditional marketing

Supplier Buyer
Reverse marketing

Buyer takes initiative to persuade supplier to provide

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 4

 Development of buyer–seller relationships
in long-term stable markets
Pre-relationship stage
Evaluation of a new potential supplier

Early stage
Negotiation of a trial delivery

Development stage
Contract signed or delivery built up

Long term stage

Several major purchases or large-scale deliveries have been made

Final stage
Established patterns of trading in long-term stable markets

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 5