Buying center
Encyclopedia
A buying center in marketing
, procurement
, and organizational studies
, is a group of employees, family members, or members of any type of organization responsible for finalizing major decisions, usually involving a purchase. In a business setting, major purchases typically require input from various parts of the organization, including finance, accounting, purchasing, information technology management, and senior management. Highly technical purchases, such as information systems or production equipment, also require the expertise of technical specialists. In some cases the buying center is an informal ad hoc group, but in other cases, it is a formally sanctioned group with specific mandates, criteria, and procedures. The employees that constitute the buying center will vary depending on the item being purchased.
In a generic sense, there are typically six roles within any buying center. They are:
Because of the specialized nature of computer and software purchases, many corporation
s use buying centers that are specialized for information technology
acquisition. These specialized buying centers typically receive information about the technology from commercial sources, peers, publications, and experience. In this process, top management, the IT director, IT professionals, and other users participate together to find a solution.
A better buying center for marketing might include:
Marketing
Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...
, procurement
Procurement
Procurement is the acquisition of goods or services. It is favourable that the goods/services are appropriate and that they are procured at the best possible cost to meet the needs of the purchaser in terms of quality and quantity, time, and location...
, and organizational studies
Organizational studies
Organizational studies, sometimes known as organizational science, encompass the systematic study and careful application of knowledge about how people act within organizations...
, is a group of employees, family members, or members of any type of organization responsible for finalizing major decisions, usually involving a purchase. In a business setting, major purchases typically require input from various parts of the organization, including finance, accounting, purchasing, information technology management, and senior management. Highly technical purchases, such as information systems or production equipment, also require the expertise of technical specialists. In some cases the buying center is an informal ad hoc group, but in other cases, it is a formally sanctioned group with specific mandates, criteria, and procedures. The employees that constitute the buying center will vary depending on the item being purchased.
In a generic sense, there are typically six roles within any buying center. They are:
- Initiator who suggests purchasing a product or service.
- Influencers who try to affect the outcome decision with their opinions.
- Deciders who have the final decision.
- Buyers who are responsible for the contract.
- End users of the item being purchased.
- Gatekeepers who control the flow of information.
Because of the specialized nature of computer and software purchases, many corporation
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
s use buying centers that are specialized for information technology
Information technology
Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...
acquisition. These specialized buying centers typically receive information about the technology from commercial sources, peers, publications, and experience. In this process, top management, the IT director, IT professionals, and other users participate together to find a solution.
A better buying center for marketing might include:
- Buyers
- Deciders
- Gatekeepers
- Influencers
- Users