Analyzing business markets - What is organizational buying?

4 important questions on Analyzing business markets - What is organizational buying?

What is organizational buying?

The decision-making process by which organizations establish the need for products and services and identify, evaluate, and choose a brand and supplier.

What are the major industries making up the business market?

  • Agriculture, forestry, fisheries
  • Mining
  • Manufacturing
  • Construction
  • Transportation
  • Communication
  • Banking, finance, insurance
  • Distribution
  • Services

What are the 3 types of buying situations?

  1. Straight re-buy: purchasing department reorders supplies such as office supplies and bulk chemicals on a routine basis and chooses from suppliers on an approved list.
  2. Modified re-buying: buyer wants to change product specifications, prices, delivery terms, or other specifications.
  3. New task: purchaser buys a product or service for the first time.
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Explain systems buying and selling

Buying (or selling) a total problem solution from one seller. A single supplier provides the buyer with its entire requirement of MRO (maintenance, repair and operating) supplies.

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