1.3. Who is buying?

In a consumer buying situation the purchasing decision is typically taken by an individual. In contrast, business purchase is done by organisations and  “usually involves more buyers and a more professional purchasing effort”. (Kotler et al. 2001, p.237) The people that are occupied with the business buying decision process are called decision making unit (DMU) or buying centre. Within this buying centre one can find several people that function as user, influencer, buyer, decider and gatekeeper. All these people can be addressed differently and individually to assure a favourable buying decision. The courier company DHL believes that secretaries and personal assistants are an important target for them, as they have the freedom to choose the courier. Their advertising strategy is focussed on getting the attention of that particular target group with advertising in “secretarial-type publications” (Kotler et al. 2001, p.249) UPS in contrast finds that these decisions are higher managing levels responsibility and targets distribution and logistics manager. For many different people being involved into a company’s buying decision, business marketers must have “well-trained salespeople” (Kotler et al. 2001, p.237)

1.4. Purchase decision

For an ultimate consumer several levels of involvement occur for a specific buying decision. These levels are positively correlated to the risk factor associated with the intended purchase. The business purchase is far more complex and includes always high risk. It needs to be coherent with organisational goals, follows a formalised procedure and is done by professional buyers which are likely to evaluate the whole process more critically. As different management levels are involved the time until a final decision is made takes much longer, depending on the complexity of the product it may take years.

During the 1990’s SIEMENS negotiated for more than two years with the Chinese government to equip a destination starting from Shanghai with their high speed technology train TRANSRAPID. After this period and having spent an assumingly significant amount of money they were told that the French TGV won the account.

To explain the formal procedure of business purchases I will apply an example from my personal experience. When working for a telecommunications company in Germany, Acris Communications AG, the assistant one day realised that certain office supply items were not available. For re-ordering purposes a procedure needed to be followed, that would lead to shortage that at this point could not be avoided anymore. The company did not have the flexibility and freedom to choose the supplier case wise, as individuals constantly can.

1.5. Conclusion

Reflecting the above mentioned differences between consumer and business markets a marketing strategy addressing these needs should be formulated. Further adaptations will occur by emphasizing particular methods (personal selling, see Question 3) rather than applying the standard marketing mix. Business marketers should be prepared to cope with individual requests and to offer personally tailored solutions. Their overall target is to be a reliable partner and to build a close long-term relationship.

2. Analyse how business marketers can use the Internet as part of the strategic marketing plan.

2.1. Introduction

“E-commerce is likely to have a huge impact on the way we do business. It has the potential to lead to dramatic growth in trade, increase markets, improve efficiency and effectiveness and transform business processes.”