MarketingManagement.pdf

Participants in the Business Buying Process 115

Organizational Factors
Every organization has specific purchasing objectives, policies, procedures, organiza-
tional structures, and systems. Business marketers need to be aware of the following
organizational trends in purchasing:

➤ Purchasing department upgrading.Spurred by competitive pressures, companies are

staffing their purchasing departments with MBAs who aspire to be CEOs—like

Thomas Stallkamp, DaimlerChrysler’s recently retired president. In his earlier role

as executive vice president of procurement and supply, Stallkamp was highly

successful in cost-cutting and in streamlining manufacturing processes.^14 These new,

more strategically positioned “procurement departments” seek out the best value

from fewer and better suppliers. At Caterpillar and other multinationals, purchasing

departments have been elevated into “strategic supply departments” with

responsibility for global sourcing and partnering. In response to this trend, business

marketers must correspondingly upgrade their sales personnel to match the higher

caliber of the business buyers.

➤ Cross-functional roles.In a recent survey, most purchasing professionals described

their job as more strategic, technical, team-oriented, and involving more

responsibility than ever before. “Purchasing is doing more cross-functional work

than it did in the past,” says David Duprey, a buyer for Anaren Microwave Inc.,

which makes microwave-signal processing devices for communication and defense.

Sixty-one percent of buyers surveyed said the buying group was more involved in

new-product design and development than it was 5 years ago. More than half of the

buyers now participate in cross-functional teams, with suppliers well represented.^15

➤ Centralized purchasing.In multidivisional companies, most purchasing is carried out

by separate divisions because of their differing needs. Some companies, however,

have recentralized their purchasing, identifying materials purchased by several

Figure 3-5 Major Influences on Business Buying Behavior