Buyer-Seller Relationships - Industrial Marketing | Textbooks | Chapters
Buyer-Supplier Relations In Industrial Markets: When Do .. extent to which unit [ firm] personnel are dependent upon one another to perform their individual jobs. whereas companies following a transactional marketing strategy are simply seeking business (B2B) buyer-seller relationships, because in this environment a small caused first critiques from industrial or B2B markets where customer. firms establish buyer-seller relationships which are often close, com- industrial marketing and purchasing can properly be described as the “management Companies will develop close relationships rather than play the market, where.
Call for bids Industrial marketing often involves competitive tendering. This is a process where a purchasing organization undertakes to procure goods and services from suitable suppliers. Due to the high value of some purchases for example buying a new computer system, manufacturing machinery, or outsourcing a maintenance contract and the complexity of such purchases, the purchasing organization will seek to obtain a number of bids from competing suppliers and choose the best offering.
An entire profession strategic procurement that includes tertiary training and qualifications has been built around the process of making important purchases. The key requirement in any competitive tender is to ensure that: The business case for the purchase has been completed and approved. The purchasing organization's objectives for the purchase are clearly defined.How Industrial Marketing is Different from Consumer Marketing - EP03
The procurement process is agreed upon and it conforms with fiscal guidelines and organizational policies. The selection criteria have been established. A budget has been estimated and the financial resources are available. A buying team or committee has been assembled. A specification has been written. A preliminary scan of the market place has determined that enough potential suppliers are available to make the process viable this can sometimes be achieved using an expression of interest process.
It has been clearly established that a competitive tendering process is the best method for meeting the objectives of this purchasing project. If for example it was known that there was only one organisation capable of supplying; best to get on with talking to them and negotiating a contract. Because of the significant value of many purchases, issues of probity arise.
Organisations seek to ensure that awarding a contract is based on "best fit" to the agreed criteria, and not bribery, corruption, or incompetence. Bidding process[ edit ] Suppliers who are seeking to win a competitive tender go through a bidding process. At its most primitive, this would consist of evaluating the specification issued by the purchasing organizationdesigning a suitable proposal, and working out a price. This is a "primitive" approach because There is an old saying in industrial marketing; "if the first time you have heard about a tender is when you are invited to submit, then you have already lost it.
This section needs expansion. You can help by adding to it. May Industrial buying journey[ edit ] Before industrial buyers engage in the bidding process, they go through a long and distinct buying journey.
A study conducted by Thomasnet. Establish the business need for acquiring a specific product or service. Define the requirements the product or service must meet.
Determine what products or services to consider. Determine if a new product or service is necessary to address the business need. Determine if buying a new product or service is financially justifiable and affordable. Define the criteria to use to evaluate the products or services under consideration. Prioritize the criteria to use to evaluate the products or services under consideration.
Evaluate alternative products or services against the prioritized criteria. Select the product or service to acquire. Define the criteria to use to evaluate the suppliers that offer the needed product or service. Prioritize the criteria used to evaluate suppliers offering the needed product or service.
Determine what suppliers to consider.
Industrial Marketing | What is Industrial Marketing?
Evaluate alternative suppliers against the prioritized criteria. Select the supplier from which to acquire the product or service. Initiate the product or service purchase.
Service providers also occasionally expand to industrial clients to take advantage of more lucrative contracts. A legal practice specializing in contract law, for instance, could expand its scope from representing only individuals to helping businesses develop their own contracts. The Industrial Marketing Process The first step in developing an industrial marketing plan is the same as developing any kind of marketing plan: The producer must understand what kinds of businesses would benefit from the product.
This creates a foundation and focus for the rest of the marketing plan. Next, the producer needs to tailor their introduction to prospective clients.
Though old-fashioned, face-to-face networking is alive and well in the business-to-business world, it is increasingly important to have a strong online presence.
Potential clients will always research a company before negotiating a sale of its product. A website with detailed but not overly specific content about the company and its products serves as a great introduction.
See also Web Marketing In our previous example of the chocolate bar manufacturer, they might create an aesthetically pleasing, well-written website talking about their company's history and the candy they produce. They would then augment the effectiveness of the website by adding a regularly updated blog about new products, or post on social networks informing users about the locations where they can buy their chocolate.
Page decided to launch a blog with tips and tricks for using iron fence material in creative ways. According to the Windmill Networking consultancy firmLEP's dedication to good, targeted content got them thousands of page views and opened up opportunities with a new generation of industrial clients after more than years in the business. Once a potential client is interested in the product, the producer should shift focus from the general introduction of its web presence to more personalized meetings and presentations.
Even if the client isn't ready to sign a contract right away, getting to know them with professional, non-pushy contact can be of great benefit.
Communication with potential clients through email, phone conversations, and in-person presentations helps nurture the business relationship. Professionals at the chocolate manufacturer might send product samples with personalized notes to develop a strong impression ahead of a business meeting. Once the client is ready to discuss the details of a contract, the marketing phase is nearly over.
The focus of all materials for this specific client should shift to maintaining a good working relationship. The chocolate manufacturer should have a solid plan with its accounts managers for how to compose emails and conduct phone conversations with representatives of the candy store, as well as how to inform them about new products.
Because the store is no longer a new client, all communications should be customized to their specific experience with the producer.