Question

Describe how purchasing has changed the business-to-business marketing process and discuss the advantages and disadvantages of electronic purchasing. Please use a source (in addition to your text) to expand your analysis and support your position. In your response to a classmate, please play the role of their immediate supervisor providing suggestions on how they could strengthen their position. ( Principles of marketing)

Answer 1

With the adaption of technology in every aspect of business,organizations are moving to electronic commerce route for purchase.The so called e-tendering is being used by many organizations to procure various items after allowing different suppliers to bid electronically.The bids are placed electronically and then analysed and awarded to the bidder who meets either the low cost criteria or the quality/other parameter aspect.

B2B purchases using technology has brought a number of changes in way B2B marketing is done.

It has brought more transparency,faster access and visibility for players who come from different regions,easier processing and shorter processing time.In countries like India e-bidding in B2B marketing has brought down corruption levels and improved business ethics.There is clear improvement in quality.Traditional route has been clouded with partiality towards a specific player,unwanted delays,loss of bid,etc.

Some of the disadvantages include better infrastructure requirement for e-bids need digital signatures which are costly to obtain in some places.Besides skilled manpower is required in transmission of the bids.There is always a threat of security with e-bids being stolen due to data hack or lost due to malfunctioning of computer or corrupted database.Malware attacks including the latest ransomware saw many computers at even leading government organization become unoperatable.Many tendering process were cancelled .The information was lost.Another major concern in e-purchasing is that you cannot feel the product.There is always a lack of physical attribute leading to a dissatified customer.There may be a huge gap between customer expectation and actual product delivered.There are also high incidences wherein a bidder who has won the project vanishes into thin air after getting initial payments.These are some of the disadvantages of electronic purchase.