What is a buying center. Explain how the prcoess of buying center
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Participants in the Business Buying Process
Who does the buying of the trillions of dollars' worth of goods and services needed by the business organizations? Purchasing agents are influential in straight -re-buy and modified re situations, whereas other department personnel are more influential in the new-buy situations. Engineering personnel usually have a major influence in selecting the product components, and purchasing agents dominate in selecting suppliers.
Webster and Wind call the decision making unit of a buying organization the buying center. The buying center is composed of "all those individuals and groups who participate in the purchasing from the decision". The buying center includes all members of the organization who…show more content… They will sign long term contracts with suppliers to ensure a steady flow of materials.
2. Organization Factors
Every organization has specific purchasing objectives, policies, procedures, organizational structures, and systems. Business marketers need to be aware of the following organization trends in the purchasing area.
Purchasing Up Grading: The new, more strategically oriented purchasing departments have been changed, from old-fashion "fashion departments" with an emphasis on buying at the lowest cost, to "procurement departments" with a mission to seek the best value from fewer and better suppliers. Some multinationals have even elevated to "strategic supply departments" with responsibility for global sourcing and partnership.
Cross-functional Roles: Most purchasing professionals describe their job as less clerical, more strategic, technical, team oriented, and involving more responsibility than even before. Sixty-one percent of buyers surveyed said the buying group was more involved in new-product design and development than it was five years ago; more than half the buyers participate in cross-functional teams, with suppliers well represented.
Central Purchasing: In multidivisional companies, most purchasing is carried out by separate divisions because of their different needs. Some companies, however, have started to centralize their purchasing. Headquarters identifies materials purchased by several divisions and buys them