Principles and Practice of Marketing, Essay Example

Who is likely to comprise the buying centre in the decision to select a new supplier for Lands’ End?

Purchasing Manager: the purchasing manager is crucial in determining the value for cost of the commodity, raw material and/or service to be purchased. This individual has the final say in the selection of a new supplier and is the head of the team.

Production Manager: the production manager access the machine tool that will be purchased, when the purchased tool is going to be incorporated into the production process of the company and/or its clients. (Kerin, Hartley and Rudelius)

Research and Development (R&D): the individual(s) from this department will analyse the viability of the product to be purchased against the current market trends and needs.

Engineering: the individual(s) from this department will analyse the functionality and efficiency of a machine tool that is to be purchased and integrated into the company’s and/or the client’s production process.

Quality Control: the individual(s) from this department will ensure that the commodity and/or service being purchased from the supplier is up to the quality standards of the company. (Burnett)

Which of the buying centre members are likely to play the roles of users, influencers, buyers, deciders, and gate-keepers?

Users: since the users will be the individuals who will be putting the product or service in question into use, these individuals will include the secretary for a new word processor or the engineers from the engineering department for a new machinery tool.

Influencers: since the influencer will determine the specification of the commodity or service to be bought, these individuals will include

Buyers: these are the individuals that negotiate the terms of the contract and selection of the supplier. This is usually the purchasing manager. (Kerin, Hartley and Rudelius)

Deciders: these are the individuals who give the approval on the product or service to be bought. It is usually individual(s) from the quality control department.

Gatekeepers: these are the individuals who control the buying centre’s information flow. This will be the technical experts from engineering, research and development and the secretaries. (Jobber)

What selection criteria does the company utilize?

Lands’ End utilizes the following criteria in the selection of a supplier.

Price: the company looks for a cost conscious supplier who is capable of pricing their commodity the same way the company does, honestly and fairly.

Quality: the company holds high quality standards and expects that its suppliers uphold similar or higher standards.

Delivery Schedules: the company believes in a tight and prompt delivery schedule, on that its suppliers must be able to adhere to. (Kerin, Hartley and Rudelius)

Technical Capability: the company is always trying to stay abreast with the latest production technology and looks for this quality in its suppliers.

Warranties and Claim Policies: the company believes that an unconditional warranty should be provided for any case scenario for its clients. This characteristic is reflected in its suppliers.

Past Performance: how a supplier has handled previous contracts and their market rating matters to the company.

Production Facilities and Capacity: the ability of a supplier to produce a given quantity of a commodity within a short time period is essential in the peak seasons such as the holidays. (Wilson and Colin)

Describe the types of purchases Lands’ End buyers typically face in each of the three buying situations: straight rebuy, modified rebuy and new buy.

Straight Rebuy: here the company is usually pleased with the quality of the commodity that the supplier provides. The commodity receives good demand and the customers respond positively to it. The company seeks to purchase more units of the commodity as it is. For example, a new television in the market. (Kerin, Hartley and Rudelius)

Modified Rebuy: here the company is relatively pleased with the quality of the commodity the supplier provides. The commodity may have received a negative response from the clients and/or the clients require a unique specification especially customized and personalized for them. For example, a different colour scheme of a shirt design.

New Buy: this is where the company seeks to expand its production processes. The company will seek a new supplier of a commodity that it does not currently sell or produce. For example, a men’s suit line.

Works Cited

Burnett, John. Core Concepts of Marketing. New York: John Wiley & Sons, 2008. Internet Source. 12 October 2013. <http://globaltext.terry.uga.edu/userfiles/pdf/Core%20Concepts%20of%20Marketing.pdf>.

Jobber, David. Principles and Practice of Marketing. London: McGraw-Hill Publishing Company, 1998. Internet Source. 12 October 2013. <http://www.mcgrawhill.ca/college/berkowitz/olc/graphics/berkowitz4mcb_s/ch07/slideshows/sld07.pdf>.

Kerin, Roger A, Stephen W Hartley and William Rudelius. Marketing: The Core. Boston: McGraw-Hill/Irwin, 2004. Print.

Wilson, R M. S and Gilligan Colin. Strategic Marketing Management. Hoboken: Taylor & Francis, 2012. Internet Suorce. 12 October 2013. <http://fds.oup.com/www.oup.com/pdf/13/9780199551682.pdf>.