What%20is%20Industrial%20sales?

1
What is Industrial sales?

• B2 B Marketing
• Institutional sales
• Government

2
Salient Features

• Fewer buyers
• Large buyers
• Closer customer - supplier relationship
• Geographical concentration of buyers
• Derived demand
• Inelastic demand

• Fluctuating demand
• Professional purchasing
• Several buying influences
• Multiple sales calls
• Direct purchasing
• Reciprocity
• Leasing

3
Buying Situations

• Routine items
• new specifications
• new items

4
Systems Buying

• Buying a total solution from one seller

5
Systems Contracting

• Single supply source supplies
• MRO (maintenance,repair.operators)

6
Buying Centres

• Initiators
• Users
• Influencers
• Deciders

• Approvers
• Buyers
• Gatekeepers

7
Major Influencers

• Environmental
• Organisational
• Interpersonal
• Individual
• Cultural

8
Environmental

• Macro views eg.production levels,investment,consum
  er spending,interest rates,technological
  changes,political - regulatory,eco - friendly
  developments
• You may like to store up raw materials fearing an
  impending scarcity or you may like to sign up
  some long term agreements

9
Organisational

• Purchase department
• Cross - functional roles - team operation
• Centralised purchasing - economical,better
  deals,easy for supplies to interact at one point
• Decentralisation of low price items
• Internet purchasing
• Long term contracts
• Supplier evaluation
• JIT

10
Interpersonal

• The seller has to be sensitive to the group
  dynamics existing in the organization involved in
  the buying process. To that extent any prior
  information researched before the purchase
  decision is taken is invaluable for the selling
  organization.

11
Individual

• keep it simple
• own expert
• want the best
• want everything done
• negotiators

12
Cultural Factors

• Necessary to know the local culture.
• Business buyers buy to reduce operating costs or
  satisfy social or legal obligations

13
Buyer tactics

• Commoditization
• Multisourcing

14
Procurement Orientation

• Cost reductions
• Quality improvements
• Early supplier involvement programmes

15
Buying Process

• Problem recognition - new product,spares,purchase
  material unsatisfactory,opportunities to buy some
  materials economically
• General need description - evolved in a team
  process
• Product specifications - engineering,manufacturing
  .technical
• Supplier search

16

• Proposal solicitation - quotations,proposals,prese
  ntations
• Supplier selection
• Buying situation - routine order
  products,procedural problem products,political
  problem products

17
Routine order products

• delivery
• price
• reliability
• supplier reputation

18
Procedural problem products

• Technical service
• supplier flexibility
• product reliability

19
Political problem products

• All the previous points mentioned in the previous
  two slides

20
Multisourcing

• Hedging against risks of non - supply
• supplier can have IR problems
• machine breakdowns
• insurance against twisting arms

21
Institutional Buyers

• Business is big
• minimum specifications
• lowest price
• domestic supplier preference
• buyer is unlikely to understand technicalities
• time taking
• patience