Assignment 1

University of Bahrain
College of Business Administration
MKT268: personal selling

Prepared for
Dr. Sarra Barraies

Prepared by
Hawra Hussain Alkhawaja – 20176735

Date: 9th November 2021

Question 1:

Assume you work for a division of 3M that makes medical monitoring systems. How would the
purchasing decision process differ in the following situations? Which situation is a new task? A
modified rebuy? A straight rebuy? How likely is the buyer to get other people in the organization
involved? Which types of people are likely to get involved in each decision? Which situation is
likely to produce the slowest decision?

a. The organization is purchasing a custom designed machine to be used in the manufacturing

of metal racks that house multiple monitoring systems.
In this situation where the company is buying custom-designed machine to store multiple
observing equipment’s; the mission will be judged new, because the organization is buying
new personalized product for the first time. The purchaser will get other persons in the
organization to make the purchasing choice by making them contribute their needs to
establish checking systems in that machine. This way, the machine could be custom
designed efficiently. The type of people who would be a part of this decision making would
be the ones who would be getting profited with the procurement of this machine. The buying
of this machine will be the slowest decision because it is being customized and that too with
the desires and needs of other people in the organization.

b. An organization reorders plastic shields that it uses in making medical monitoring

equipment from a regular supplier, a supplier that it has bought from in the past.
In this situation where the organization is repurchasing plastic Shields from the supplier with
whom the organization has brought this product in the earlier times; the task will be
considered as straight rebuy because in this the purchasing of the repeated product from the
previous buyer is taking place. The buyer will get other people in the organization to make
the buying decision by making the others to contribute if there is a need of any kind of
changes or upgradation in the plastic Shields. The type of people who would be a part of this
decision-making would be the ones who would be getting benefited with the buying of this
machine.
c. The organization is designing a new line of medical monitoring equipment and wants an
improved and updated microprocessor. It is considering its past suppliers as well as some
suppliers that it has not bought from before.
In this situation where the organization is designing a new line of monitoring equipment and
is in need for new and improved microprocessor. For this, the organization is considering its
previous supplier as well as new suppliers. Based on this, the tasks will be considered as
modified rebuy because in this the rebuying of certain product from the past seller is taking
place in a modified way. The buyer will get other people in the organization to make the
buying decision by making the others to contribute if there is a need of any kind of changes
or upgradation. The type of people who would be a part of this decision-making would be
the ones who would be getting benefited with the buying of this product.

Question 2:

How do organizations make purchase decisions? Which factors do organizations consider when
they evaluate products and services?

Buying behavior stand for the way people buy and make decisions for their purchases that
provides insights about human behavior, needs, requirements, and how the price of a particular
product and its availability and access affects their buying behavior and decisions. Getting
acquainted with human buying behavior will provide a sale person to be more aware of their
buying skills and the basis of which their buying decision relies.

Many factors are considered when evaluating a product\ service:

 Costs
Before setting the pricing, set up the prices engaged with operating the business. It
involves the fixed costs and the direct costs. Moreover, what does the clients want? Are
the attracted to us by the lowest price or the value we deliver? Do they price have a big
part in their buying decision? It will help the organization in deciding if the price is
reasonable, and what they should offer in the market. Therefore, the organization can
decide what is needed to be changed in order to make their business more profitable.
 Positioning
If we understand the consumers, the organization have to check their positioning. Where
do they intend to be in the market? the most luxurious, the lowest, or in the middle?
When the organization decide, the clients will have an impression of their standard
pricing.
 Competitors
The organization will be wondering what their competitors are charging for, and what
additions and amount of service are they proposing for those costs. In addition, they want
to know what segment of people they are targeting for their pricing strategy, and their
position in the market. Therefore, when having the answers to those issues, they will have
a standard for their pricing.

 Profit
How much profit does the organization wants to make? A question that each organization
have to ask itself before making any decision.