Industrial Markets:

Organisational Buying Behaviour

Marketing Management - 1

Dr Omkumar Krishnan
Faculty, IBS Bangalore
 Industrial Markets
• Use other than Personal consumption
• Business 2 Business
• Organisational Buyer & Seller
• Small Component ---- Complex Machinery

Dr Omkumar Krishnan
Faculty, IBS Bangalore
 Consumer Vs. Organisational
• Time factor
• Number of People Involved
• Buyers and Sellers (limited)
• Quantity of Consumption (Similar Products)
• Buying Situation
(New Task, Straight Rebuy, Modified Rebuy)

Dr Omkumar Krishnan
Faculty, IBS Bangalore
 Classification
• Producers
Raw Materials, OEM, Facilitators
• Government Markets
• Institutional Markets
• Resellers
• Indian Context
Energy & Natural Resources
Chemical & Pharmaceutical
Industrial & Automotive

Dr Omkumar Krishnan
Faculty, IBS Bangalore
 Influencing Factors
• Environmental
Legal, Political, Economic, Cultural, Ecological
• Organisational
Rules, Regulations, Policies
• Social & Personal
Inter Personal Relations, Roles, Key Individuals

Dr Omkumar Krishnan
Faculty, IBS Bangalore
 Organisational Buying
• Initiators—Influencers—Users--- Deciders
–Approvers--- Buyers --- Gatekeepers
• Role of Product Manager
• Procurement Process
• Supply Chain Management
• Lead users
Innovative---watched---imitated
Dr Omkumar Krishnan
Faculty, IBS Bangalore
 Buying Phases
• Identification of Need
• Establishment of Objectives
• Identification of Suppliers/ Vendors
• Evaluation of Alternatives
• Selection / Negotiations
• Review of Performance
• Relationship Establishment
Dr Omkumar Krishnan
Faculty, IBS Bangalore
 Buying Dimensions
• Purchasing Manager
• Online Supplier
• Strategic Alliances
• Relationship Marketing

Dr Omkumar Krishnan
Faculty, IBS Bangalore
Segmentation -Industrial Markets
• Demographics
Industry, Company Size, Location
• Operating Variables
Technology, User/Non User Status, Capabilities (services)
• Purchasing Approaches
Function (Central..), Power, Relationships, Policies, Criteria
• Situational Factors
Urgency, Specific Application (Product), Order Size
• Personal Characteristics
Similarity, Risk, Loyalty
Dr Omkumar Krishnan
Faculty, IBS Bangalore