Purchasing organization

Another micro-segmentation variable is that of decentralized versus centralized purchasing, because of its influence on the purchase decision. Centralized purchasing is associated with purchasing specialists who become experts in buying a range of products. Specialization means that they become more familiar with cost factors, and the strengths and weaknesses of suppliers than do decentralized generalists. Furthermore, the opportunity for volume buying means that their power base to demand price concessions from suppliers is enhanced. They have also been found to have greater power within the decision-making unit (DMU- see Chapter 3) vis-a-vis technical people, like engineers, than decentralized buyers who often lack the specialist expertise and status to challenge the technicians' preferences. For these reasons, purchasing organ­ization provides a good base for distinguishing between buyer behaviour, and can have impli­cations for marketing activities. For example, the centralized purchasing segment could be served by a national account salesforce whereas the decentralized purchasing segment might be covered by territory representatives.

5.1 e-Marketing

Segmenting the Web Audience

As the Internet grows, so an understanding of its audience of users becomes imperative. A study by the research and consulting company Netpoll has produced profiles of Internet users. Based on criteria such as age, socio-economic group, gender and lifestyle, the analysis has highlighted a number of segments, some of which are described below.

• The gameboy: aged 15, he accesses the Internet mainly at home. He is into playing online games. He thinks he is net savvy and pretty hip. Other interests include football.

• The cyberlad: aged 23, he uses the Internet at work and home. He is a bit of a Jack-the-lad and thinks he is an expert at all things to do with the Internet. He spends a lot of time online searching for smut and e-mailing it to his mates. Interests include sex and sport.

• The net sophisticate: aged 28, this person straddles the border between cool and nerd. Could be a gee-whizz executive, or unemployed and living with his mother. He is really into the Internet and believes that he knows more about it than anyone.

• The cybersec: aged 31, this person works as PA to the boss of a small company. She only accesses the Internet at the office and is not really into computers. She started to use the Internet to do research for her boss and to make travel arrangements, but more recently has started to explore on her own.

• The hit 'n' runner: aged 38, he or she is a successful professional or a high-flying marketing executive. Internet access is at work and is not seen as a form of entertainment. Very impatient if the web is slow or they cannot find what they want. They bank online and use the net to manage their investment portfolio and to research holidays.

• The infojunky: aged 40, married with two children, he or she might be a middle-ranking civil servant or partner in a small firm of solicitors. Likes the feeling of being in control and in touch through the Internet. Perhaps wrongly, feels that time spent online is a big benefit to his or her job.

5.2 e-Marketing