Understanding B2B Buyer
Behavior
Buy Task, Buying Center, External Influencers, CDJ -Sales
Cycle
Session 2
Dr.Subroto Roy
University of New Haven
WhattsaApp: 1-203-768 5690
India Cell: 852 793 7022
Gmail: [email protected] 1
Recap & Learning Objectives
• Recap:
• In the previous session, we explored the key differences
between B2B and B2C marketing, highlighting the importance
of relationship marketing in B2B.
• Learning Objectives:
• Today, we will delve into the decision-making processes
involved in organizational buying, which will be crucial for
your group projects.
• We will analyze the role of Decision-Making Units (DMUs) and
how they influence buying behavior.
• We will identify the various factors that influence B2B buyer
behavior to help you understand your target market for the
project. 2
Group Project and Business Buying
Behavior
• Project Overview: What are the group project's
objectives? Remember : Must identify a business
marketing/selling to another business.
• Focus on Buyer Behavior: The importance of
understanding buyer behavior for project
success.
• Business Buying Behavior: Could be one of
the 3 elements of your final presentation
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Types of Buying Situations- Tasks
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• New Task:
First time… have never procured before ( what would
teams as buying company do? )
• Straight Rebuy:
Already buying… (what would teams as buying
companies do? )
• Modified Rebuy:
Buy something regularly – but need some modifications
(eg engineering part )
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The B2B Customer Decision Journey (CDJ)
L---o--n-g Sales Cycle?
• What is the CDJ?
• The B2B Customer Decision Journey (CDJ) is the process
customers go through before, during, and after a purchase.
• It's important to note that this journey is not always linear;
customers may revisit stages or even skip some altogether.
• Key Stages:
• Inspiration: Customers seek out ideas and gather information
online.
• Sharing: Customers share their experiences and reviews on
social media platforms.
• Transforming the Strategy: Customers make informed
decisions and take action.
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Stages of the Organizational Buying Process
8 Key Stages:
• Problem Recognition
• General Description of Need
• Product Specifications
• Supplier Search
• Acquisition and Analysis of Proposals
• Supplier Selection
• Selection of Order Routine
• Performance Review
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The Buying Center
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• Definition: A group of individuals within an organization who are
involved in the buying decision-making process.
• Roles:
• Users: Those who will actually use the product or service.
• Influencers: Those who provide input and expertise to the decision.
• Deciders: Those with the authority to make the final purchase decision.
• Gatekeepers: Those who control the flow of information and access to
the buying center.
• Buyers: Those who handle the actual purchasing process.
• Importance for Project: Understanding the roles and dynamics
within the buying center of your target market is essential for
tailoring your marketing strategy
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Factors Influencing Buying Behavior: Environmental Forces
• External Factors:
• Economic: These include the overall economic conditions,
industry trends, and other economic factors that can influence
a company's purchasing decisions.
• Technological: New technologies, automation, and
innovation can significantly impact B2B buying behavior.
• Natural: Resource availability and environmental concerns
are increasingly influencing B2B transactions.
• Political/Legal: Government regulations, trade policies, and
political stability can all play a role in shaping B2B buying
decisions.
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Factors Influencing Buying Behavior:
Organizational Forces
• Internal Factors:
• Procurement's Role: (Not really) The procurement function is
taking on an increasingly strategic role, focusing on cost efficiency
and value creation.
• Strategic Priorities: B2B buying decisions must align with the
organization's overall business goals and strategic priorities.
• Buying Approaches: Different buying approaches can influence
the process, including:
• Total Cost of Ownership (TCO): This approach considers all costs
associated with acquiring, using, and disposing of a product.
• E-procurement: Using online platforms and tools to streamline the
purchasing process.
• Reverse Auctions: A competitive bidding process where suppliers bid
against each other in real-time.
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Activity: Buying Center Analysis
• Let’s do this in your project groups.
• Based on your chosen target market, discuss and
analyze the potential buying center for your product or
service.
• Consider the different roles within the buying center
and the factors that might influence their decisions.
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Key Takeaways & Next Steps
• Key Takeaways: Understanding the buying center and its
dynamics is crucial for developing effective B2B marketing
strategies.
• Consider the various factors that influence buying
behavior when analyzing your target market for the group
project.
• Apply the concepts of the CDJ (Sales cycle)and the
organizational buying process to your project planning.
• Continue working on your group project, focusing on
identifying and analyzing your target market's buying
behavior.
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