Buying Center

Examples of Buying Center in the following topics:

• Buying Centers

  • A buying center is a group of people within an organization who make business purchase decisions.
  • The stock market is an example of a buying center.
  • The employees that constitute the buying center will vary depending on the item being purchased.
  • In a generic sense, there are typically six roles within buying centers.
  • They control the flow of information to and among others within the buying center.

• Influences on Business Buying

  • Certain environmental and economic factors can lead to an apprehensive buying center.
  • Organizational factors such as the company's objectives, purchasing policies, and resources can influence the buying process.The size and composition of the buying center also plays a role in the business buying decision process.
  • The interpersonal relationships between people working in the company's buying center can hinder the buying process.
  • Buying center members need to trust each other and operate under full disclosure.
  • The personal characteristics of people in the buying center can influence the buying decision process.

• Decision-Making Units

  • In the business-to-business (B2B) context (as opposed to B2C), buying decisions are made in groups.
  • The group responsible for making the buying decision in companies is referred to as the decision making unit (DMU).
  • In some cases, the buying center acts as an informal ad hoc group.
  • In other cases, the buying center is a formally sanctioned group with specific mandates, criteria, and procedures.
  • The infrastructure buyer - This role influences the buying decision at the execution level.

• Stages of Business Buying

  • Understanding the stages of business buying is important to a marketing firm if it is to market its product properly.
  • Buying center participants assess problem and need to determine what is necessary to resolve/satisfy it
  • Understanding the stages of business buying and the nature of customers' buying behavior is important to a marketing firm if it is to market its product properly.
  • Buying one can of soft drink involves little money, and thus little risk.
  • Buying B2B products is much riskier.

• Distribution Centers vs. Direct Store Delivery

  • Depending on customer needs, marketing channel strategies can utilize distribution centers or move products directly to a store.
  • Depending on the product being sold and ultimate end user, companies can choose a marketing channel strategy that involves utilizing distribution centers (wholesalers) or moving their products directly to a store, or retailer.
  • Chain Stores - Chain stores are able to buy a wide variety of merchandise in large quantity discounts.
  • The firm must also understand the buying specifications of the retailers themselves.
  • Although some retailers prefer to buy directly from the manufacturer, others would rather buy from local distributors who have lenient credit terms and offer a wide array of merchandise.

• Types of Buying Decisions

  • Buying decisions are based on buyer behavior.
  • Consumers will often buy on emotion or impulse whereas businesses will buy based on need.
  • Because consumers often buy on emotion, ads can affect the buying decision.
  • Sometimes the type of product will make a difference in the buying decision.
  • This is why companies can influence what type of car a person will buy, but not when they will buy one.

• Future Changes in Retailing

  • It personalized the buying experience and insures future business by consistently suggesting products that fit a customer's personal profile.
  • The consumer has taken center stage in the future of retailing as new information about their expectations shape the way retailers select, stock and sell their products.
  • Look for more hypermarkets, super malls and shopping centers that make the experience easy and convenient for customers.
  • Products will be offered based on customer preference, buying habits, suggestions and feedback.
  • Social commerce will flourish and become a keystone of the buying experience.

• Buying Situations

  • B2B buying situations vary from B2C buying situations, so B2B marketers must develop different capabilities.
  • Such detailed assessment eliminates the risk of buying the wrong product or service.
  • Buyers go though three stages of the buying process, which include:
  • The problem is that marketers have to face the realities of the B2B buying cycle, which include:
  • Like B2C businesses there are similar buying types in B2B sales activities that include new buys, straight re-buys and modified re-buys.

• What Are Markets

  • The person or organization must be willing to buy the product.
  • The person or organization must have the authority to buy the product.
  • International markets, American markets, a shopping center, and even the site of a single retail store can be called a market.
  • Consumer markets include individuals and households who buy consumer goods and services for their own personal use.
  • All intermediaries that buy finished or semi-finished products and resell them for profit are part of the reseller market.

• The Dynamic Environment

  • It also includes consumers, collaborators, and centers of influence.
  • Examples include wholesalers, and retailers such as Wal-Mart, Target, and Best Buy.
  • The consumer market is made up of individuals who buy goods and services for their own personal use.
  • Business markets include those that buy goods and services for use in producing their own products.
  • Centers of influence are also key to successful marketing relationships.