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Principles of Marketing - Philip Kotler

Exactly how buyers of manufactured goods make purchasing decisions?

Let's see how the buyers of manufactured goods make purchasing decisions. This process is similar to the process of deciding whether to buy a wide consumer, what was discussed in Sec. 5. However, in this case buyer overcomes the increasing number of etapov8.

• Awareness of the problem
• A generalized description of the needs of
• Evaluation of characteristics of the goods
• Search Provider
• solicitation
• supplier Selection
• Development of issuance of the order procedure
• Assessment of supplier

Awareness of the problem. The procurement process begins with awareness momenta someone from employees of the company problems or needs, to meet which can be via acquisition on the side of good or service. Awareness of the problem may be due to the influence of both external and internal stimuli. Inside the company to realize the problem is most often fed the following events: The company decides to start a new product release, and needs new equipment and materials for its production. There is damage to the machine, and should be replaced or the purchase of new units and parts.

Some of the purchased materials are unsatisfactory in quality, and the company is looking for another supplier. The purchasing agent feels that it is possible to obtain more favorable prices or receipt of goods of better quality.

External stimuli may be some new ideas purchasing agent from his visit to the specialized exhibitions, meetings with some advertising or a traveling salesman, who will offer the best quality product and at a lower price.

General description of NEEDS. Realizing the need, purchasing agent begins to identify common characteristics of the desired product and its required amount. With respect to conventional standard products are no major difficulties exist. As sophisticated products, to determine their general characteristics supplier should work together with other members of the procurement center - engineers, direct users, etc. They will have to rank the importance of reliability, durability, cost, and other desirable properties of the desired product.

At this point, the seller of manufactured goods may have a large company-buyer assistance. After purchasing agent often not aware of the significance of the value of different characteristics of the goods, the seller and provident able to help procurers to better define the needs of the firm.

EVALUATION OF PERFORMANCE OF THE PRODUCT. At the next stage the acquirer begins to compile a set of required technical characteristics of the goods. Above this problem is to work on the engineering team of specialists activity-based costing. Functionally-value analysis, first used in the late 40-ies of "General Electric" corporation - an approach to reduce production costs, assuming a thorough study of component parts in order to determine their possible structural alterations, standardization and manufacture using cheaper processing methods. A team will carefully study the most expensive components of the goods. In addition, it will identify parts and components with excess inventory, ie with a lifetime of more than a term life product as a whole. Having determined the optimum characteristics of the goods, experts will make the relevant technical requirements on it. In the course of the functional-cost analysis usually study the following key issues:

1. Does the use of the product Brings some extra value?

2. Does the value of the goods are comparable to its usefulness?

3. Does the presence of the product should be in all the properties it possesses?

4. Is there a product that better meets the requirements of the intended use?

5. Is it possible to make the desired item at a lower cost?

6. Can I choose to use an existing standard product?

7. Is its purpose tooling production in terms of volume of demand for the product?

8. Are any in the cost of its cost of materials, labor, overhead expenses and deductions for profit?

9. Is it possible to get the goods at a cheaper price from another provider of case?

10. I buy someone desired goods cheaper?

Sellers can also use value analysis as a marketing tool. Demonstrating a more rational method of manufacture of the goods, the seller is an outsider can turn the situation re-purchases unchanged procurement situation to solve new problems, with the result that his company may have a chance to consolidate business relations.

Search for sellers. After that, the procurement agent trying to identify the most suitable suppliers. To do this, it may take the study of trade directories, organize search information via a computer or by calling the recommendations from other companies. Some providers will be excluded from the number of possible candidates, as their power do not meet the quantitative requirements in the product or have a bad reputation in the sense of providing supplies and services. In the end, purchasing agent will be a short list of qualified suppliers. The newer challenge for the purchase, and the more complex and more expensive goods, the more time it takes to search for qualified suppliers.

Solicitation. Now the salesman starts to request proposals from qualified suppliers. Some of them simply will be sent in response to a directory or a traveling salesman. If the goods are complex and expensive, suppliers require detailed written proposals from each potential supplier. The remaining suppliers purchasing agent will be evaluated after their formal presentations.

Choice of suppliers. At this stage of the procurement center members study proposals and proceed to the choice of supplier. They appreciate not only the technical competence of the various candidates, but also their ability to ensure the timely delivery of goods and the provision of necessary services. Often, members of the procurement center is a list of desired characteristics with the supplier ranking them in order of relative importance. For example, when choosing a supplier of chemicals is one of the centers of procurement amounted to the following hierarchy of performance and decreasing order of importance.

1. Availability of technical assistance services

2. Efficiency of supply

3. The speed of response to customer needs

4. The quality of the goods

5. Provider Reputation

6. Price of goods

7. Completeness product range

8. Skill level salespeople

9. Features of the loan

10. Personal relationships

11. The commodity literature, manuals and handbooks

Before you make a final choice, purchasing agent can try to negotiate with preferred suppliers in order to gain more favorable prices and supply conditions. Finally, any one or more provider is selected. Many agents procurement prefer to have a number of sources of supply. In this case, they have the option not to depend entirely on one supplier when some inconsistencies, as well as the opportunity to compare prices and performance of different suppliers.

Develop procedures for ordering. Having dealt with the selection, purchasing agent starts drawing up the final purchase order on the selected supplier or suppliers. In the final order, he specifies the technical characteristics of the product, its required amount, the estimated delivery time, return policy, warranty, and so on. N. For products needed for maintenance, repair and maintenance of equipment, agents procurement increasingly moving away from the practice of periodic orders supply and tend to the conclusion of comprehensive contracts. After making a new purchase order with the depletion of the goods does not come cheap. Not interested in purchasing agent and in the design of fewer but larger orders by volume, because it means the need to maintain large inventories. As part of the comprehensive contract established long-term cooperation, under which the supplier undertakes to re-supply as necessary and at agreed prices during the specified period of time. In this case, supply of goods is the seller, and this practice was called "procurement plan without stockpiling." In the event of the need for product company produces computer directly or by telex corresponding order to the seller. The practice of concluding comprehensive contracts leads to the fact that purchases are increasingly made from a single source, the amount purchased from this source of goods is growing. Supplier is associated with the company-buyer more close-knit, and other suppliers of hard to break these ties, except when the customer no longer meet the price or service postavschika10.

ASSESSMENT OF THE SUPPLIER. At this stage, purchasing agent evaluates the work of a particular supplier or suppliers. To do this, he can communicate with users and ask them to assess the degree of their satisfaction. The results of the evaluation of a purchasing agent can continue cooperation with the supplier, to make adjustments in this cooperation or refuse its services. provider task - to constantly ensure that the customer gets satisfaction on which counted.

We have examined the steps that are necessary to overcome the situation in the procurement of production to meet new challenges. In situations procurement repeated with or without changes repeat purchases some of these steps can be reduced or bypassed altogether. In other situations it may be necessary to process any additional steps. The seller of manufactured goods must be suitable to consider each situation specifically.

Thus, we have seen that industrial marketing - the scope of testing Seller abilities. The most important thing in it - the knowledge of the needs of its customers and the peculiarities of their procurement procedures. With this knowledge, the seller of manufactured goods be able to develop an effective marketing plan for sales and service of its clientele.