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Sophisticated Graphic computer industry Industry Practice: Quoting high Prices, Heavy discounts Products priced 10-15% lower, Less discounts Purchasing agents measured by superiors by amount deducted during negotiations Key Learning: Discounts had a significance to buyers that sound pricing logic does not fulfill
Situation 2
AT&T faced competition from a vendor with better technology Customers key decision maker : Ex-Bell employee (big-name system buster) Very less response time to sales threat due to lack of analysis Key Learning: Power, motivation & perceptions of individuals needs to be studied
Owner Market Central decision maker: CEO Find the kid inside and impress with raw beauty of the plane Major influencer & Gatekeeper: Pilot, Technical Expert Non Owner Market Even more complex market No precedent/ aviation expert exists
Buying Center
Initiator: recognizes the problem Gatekeeper: Act as a problem/ product expert Influencers: Who have a say in the purchase and about what is bought Decider: Who say Yes/ No to the purchase Purchaser: Completes purchase, negotiates User: Consume the Product/Service One manager can assume Multiple roles, and viceversa
Diagnosing motivation
Very important!!! Basic rule of motivation All buyers act selfishly or try to be selfish but sometimes miscalculate and dont serve their own interests
a. Absolute cost saving b. Cheaper than competitors c. Will provide operating cost reductions d. Economies of leasing versus buying
a. Pre and a. Will a. Will post sales purchase purchase service enhance increase b. Specific the buyers liking or features standing respect for c. Space with the the buyer? occupied by buying b. How does unit team or top purchase fit d. Availability manageme buyers self nt? concept?
Buyers Unsure that the desired product will bring the desired benefit