a) Purchase Motivators for Industry Customers
There are variables that motivate the industrial purchase, most of these are economical and rational. Of these variables we can mention three or four that are the most important.
Initially there is Price and Cost Evaluation, and as mentioned before, for this type of customers price is not as important as for the final consumers.
Industrial Customers buy value, therefore they assess factors such as: amount of savings or expenses that may pose a particular product or service, the electricity, increased productivity, and how much benefits this merchandise will bring to the company. This is called: Evaluated Price, “when benefits outweigh the costs and when the product in question has an optimal benefit-cost relation, the customer will buy the product” (Aguirre García, 2000). Into the bargain goes the different types of benefits an industrial customer can get when purchasing: functional, operational, financial and personal. Functional benefits are the utilitarian aspects that are attractive for the staff and technical department, these generate facilities when it comes to manage or operate the product or service. Then we have the operational benefits, these make the product reliable and durable with the warranty, maintenances and repairs from the company. Followed by the financial benefits, these consist on credit or payment facilities, even savings. As a final point the personal benefits, these are very particular, since they have to do with the personal satisfaction of doing a good work or even protect themselves against the possible risks by choosing the right product or recognized supplier. Nevertheless there are also costs, and they are as diverse as the benefits. Primary there are the acquisition costs, which are very clear: purchase and transportation price, installation and order process and secondly the less clear defined costs, such as: Risk of product failure, repairs on the equipment or even delays on delivery. At the same time, another motivator is the quality and consistency with the specifications. Customers are always looking for consistent quality levels, hence, they are not willing to pay for extra quality when they didn’t ask for it, or diminish their specifications on quality for a cheaper price. Consequently, the products or service acquired need to be perfectly tailored to their special needs Finally service is the last important motivator. Service can be a differentiation and loyalty element. This represents most of the times the greatest value for customers, therefore if a product is bided without a service offer, it can lose completely its added value. III. Activity in the Company and Empirical Study Aguas Integrales is a company that supplies and installs mostly pump equipment and fire protection systems to the industry sector in El Salvador. These type of products are hydraulic and therefore very technical and hard to understand for most population, consequently they require a lot of preparation and technical analysis to design and install which in turn makes them very high in cost. As Aguas Integrales is a hydraulic engineer company, their owners never focused much on brand or marketing before. After recognizing this need, I was hired to develop the marketing department from scratch, manage the …show more content…
Besides other companies in the business have never done marketing research. As Information is Power, if Aguas Integrales can obtain information on the purchase decision making factors, it can use that in its favor for future bids and projects, in the end, it gives the firm a complete advantage in the sector.
Nevertheless for this dissertation I don’t want just any perception, but very specific ones: the perception of the decision makers of the construction sector. Those companies that buy Aguas Integrales’ services, the ones that might have not chosen their bid in the past and they never knew why, and the one of their frequent customers who love the service this company offers.
By obtaining these important customers opinions and analyze them, I will be able to give the CEO an idea of the importance of the brand, some factors that are crucial when it comes to take a purchase decision in an industry bid, and confirm or deny the theory that says that: price in El Salvador is what really matters the most when it comes to decision making in a Bid. o Terms of
There are variables that motivate the industrial purchase, most of these are economical and rational. Of these variables we can mention three or four that are the most important.
Initially there is Price and Cost Evaluation, and as mentioned before, for this type of customers price is not as important as for the final consumers.
Industrial Customers buy value, therefore they assess factors such as: amount of savings or expenses that may pose a particular product or service, the electricity, increased productivity, and how much benefits this merchandise will bring to the company. This is called: Evaluated Price, “when benefits outweigh the costs and when the product in question has an optimal benefit-cost relation, the customer will buy the product” (Aguirre García, 2000). Into the bargain goes the different types of benefits an industrial customer can get when purchasing: functional, operational, financial and personal. Functional benefits are the utilitarian aspects that are attractive for the staff and technical department, these generate facilities when it comes to manage or operate the product or service. Then we have the operational benefits, these make the product reliable and durable with the warranty, maintenances and repairs from the company. Followed by the financial benefits, these consist on credit or payment facilities, even savings. As a final point the personal benefits, these are very particular, since they have to do with the personal satisfaction of doing a good work or even protect themselves against the possible risks by choosing the right product or recognized supplier. Nevertheless there are also costs, and they are as diverse as the benefits. Primary there are the acquisition costs, which are very clear: purchase and transportation price, installation and order process and secondly the less clear defined costs, such as: Risk of product failure, repairs on the equipment or even delays on delivery. At the same time, another motivator is the quality and consistency with the specifications. Customers are always looking for consistent quality levels, hence, they are not willing to pay for extra quality when they didn’t ask for it, or diminish their specifications on quality for a cheaper price. Consequently, the products or service acquired need to be perfectly tailored to their special needs Finally service is the last important motivator. Service can be a differentiation and loyalty element. This represents most of the times the greatest value for customers, therefore if a product is bided without a service offer, it can lose completely its added value. III. Activity in the Company and Empirical Study Aguas Integrales is a company that supplies and installs mostly pump equipment and fire protection systems to the industry sector in El Salvador. These type of products are hydraulic and therefore very technical and hard to understand for most population, consequently they require a lot of preparation and technical analysis to design and install which in turn makes them very high in cost. As Aguas Integrales is a hydraulic engineer company, their owners never focused much on brand or marketing before. After recognizing this need, I was hired to develop the marketing department from scratch, manage the …show more content…
Besides other companies in the business have never done marketing research. As Information is Power, if Aguas Integrales can obtain information on the purchase decision making factors, it can use that in its favor for future bids and projects, in the end, it gives the firm a complete advantage in the sector.
Nevertheless for this dissertation I don’t want just any perception, but very specific ones: the perception of the decision makers of the construction sector. Those companies that buy Aguas Integrales’ services, the ones that might have not chosen their bid in the past and they never knew why, and the one of their frequent customers who love the service this company offers.
By obtaining these important customers opinions and analyze them, I will be able to give the CEO an idea of the importance of the brand, some factors that are crucial when it comes to take a purchase decision in an industry bid, and confirm or deny the theory that says that: price in El Salvador is what really matters the most when it comes to decision making in a Bid. o Terms of