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D099 Module 3
Organizational Buying
| Question | Answer |
|---|---|
| Buying centers | A group of people within an organization who make business purchasing decisions |
| Selling centers | Functional representation that supports a sales person to create a team-selling approach |
| Economic buyer | The individual decision maker or group within the customer organization who controls the budget and writes the checks for new product purchases |
| Infrastructure buyer | Someone who makes sure that purchasing rules defined in corporate governance procedures are followed |
| User buyer | Someone who influences the buying decision as the person who will actually use the solution after the purchase decision is made |
| Initiators | Individuals who suggest purchasing a product or service for a business |
| Users | Individuals within an organization who actually use the product |
| Influencers | Individuals who have experience or expertise that can help improve the buying decision |
| Gatekeepers | Individuals who will decide if and when one gets access to members of the buying center |
| Decisions makers | The person who makes the final purchasing decision |
| Buyers | The people who sign the contract. Focused on the financial aspects of the purchase and how the purchase can positively impact organizational metrics |
| Procurement officer | Persons who are responsible for the management, administration, and supervision of the company's acquisition programs |
| Organizational buying process | Process through which industrial buyers make a purchase decision |
| Recognizing the need | Someone recognizes that the organization has a need that can be solved by purchasing a good or service. Users often drive this stage, although others can serve the role of initiator. |
| Defining the need | Usually involves users as well as initiators to put more definition around the type of product or service that will help meet the need |
| Search for suppliers | People involved in the buying process seek out information about the products they are looking for and the vendors who can supply them |
| Bid analysis | Qualified suppliers are asked to complete responses to requests for proposals |
| Request for proposals (RFP) | An invitation to submit a bid to supply a good or service |
| Supplier Selection | RFPs are reviewed and the vendor or vendors selected |
| Order Placement | Order is typically placed electronically and can be one transaction or continuous. |
| Performance Review | Buyer surveys quality and satisfaction levels |
| Producer | A company that purchases parts, products, or ingredients to produce other goods and services to sell to other companies or consumers |
| Resellers | A company that buys finished goods to sell, lease, or rent to other companies or consumers |
| Organizations | A government agency or nonprofit group that purchases products or services to serve or sell to its constituents |
| Straight rebuy | The duplicate purchase of the identical goods in the identical amount under the identical terms from the identical supplier |
| New task purchase | A business buying situation in which the buyer purchases a product or service for the first time |
| Modified rebuy | A buying situation in which an individual or organization buys goods that have been purchased previously but changes other element of the previous order |
| Functional relationships | Limited, ongoing relationships that develop when a buyer continues to purchase a product from a seller out of habit, as long as its needs are met |
| Affiliative relationships | A situation where the buyer needs extensive expertise from the seller to make a decision |
| Strategic partnership | A partnership in which the buyer and seller commit resources to generate growth for both parties |
| Alliance agreement | A formal agreement among companies who want to share resources to create a competitive advantage |
| Joint R&D agreements | Businesses join to develop a specific product or service |
| Co-marketing agreements | An agreement where companies share resources to market their products together |
| Minority investments | An investment by one organization in another organization in which the investor firm holds less than 50 percent of the shares |
Created by:
kim.miller