In both stages, the demand for its various products stems from the demand by end consumers for

the
ultimate product. For example, Himalaya Drug Company (HDC) is a loyal purchaser of IOIs soap
noodles. HDC is leading manufacturer of quality herbal and ayurvedic products for the masses of India
and for 40 other countries worldwide. It utilises IOIs soap noodles along with other high quality raw
materials to produce its own range of products for consumers. Hence, the demand for soap noodles
by HDC is derived from the demand consumers have for HDCs products. If there is a fall in demand
for HDCs end products, HDC would generally produce less. This leads to a corresponding fall in
demand for IOIs soap noodles and other raw materials.
Implications for IOIs marketing process include:
a) Customer Relationship management. Whenever there is a change in the end customers taste and
preference, IOI needs to work closely with manufacturers in studying these new trends, capitalising on
it by producing relevant products which cater to the changing taste and preference of the end user.
b) Obtaining relevant accreditations. In order to sell products to the Muslim or Jewish community, IOI
needs to get the Halal and Kosher certification respectively. With increasing attention paid by people
to companies enforcing sustainable management of the environment, IOI is ISO140004 and
ISO140001 accredited. According to RSPO in April 2011, IOI has 4 green certified mills. Another three
have been audited and the remaining five mills were scheduled to be audited by the end of the year.
c) Securing contracts and bulk orders. IOIs customer base includes large manufacturers such as
Unilever, P&G, India Tobacco Company Limited which purchase in bulk via contractual agreements.
Factors affecting the demand for IOIs products include price, quality, delivery, technical support, postsale services and financing assistance. Manufactures purchase in bulk contractual agreement to
minimise price volatility and to maximise economies of scale. In the event there is a downturn in
demand for the final products, resulting in cash flow issues for the manufacturers, IOI can consider
offering them financing assistance in the form of credit, so that manufacturers can tide over that period
of difficulty.
3. When it comes to making a purchase, several people in the organization participate in the buying
process. The individuals in the group, called a buying centre, share common goals, risk and
knowledge important to a purchase decision. It is crucial that a firm marketing to other industrial firms
understand the structure, technical and business functions represented, and the behaviour of such
groups. The marketing strategy to be used by sellers depends on the type of buying situation and the
stage of purchasing process. Although the purchasing manager tends to always be in the buying
centre, members from other functional areas are included as well, depending on what is to be bought.
There are 5 specific roles in the buying centre. a) Users are the people in the organization that actually
use the product or service. b) Influencers affect the buying decision, usually by helping define the
specifications for what is bought. c) Buyers have formal authority and responsibility to select the
supplier and negotiate the terms of the contract. d) Deciders have the formal or informal power to
select or approve the supplier that receives the contract. e) Gatekeepers control the flow of
information in the buying centre.
There are 3 situations which involve the buying centre. a) Straight rebuy occurs when the buyer
reorders an existing product/service from the list of acceptable suppliers. b) Modified rebuy occurs
when the users, influencers or deciders want to change the product specifications, price, delivery
schedule or supplier. c) New buy occurs when the organization is a first time buyer of the product or
service.
For IOIs customers such as Unilever and Frito-Lay, decision makers may come from the research and
development department, quality control department, production department, procurement
department, finance department and management team. Assuming that each department mentioned
above sends a representative, the various individuals are thus expected to voice out concerns and
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ISO 14000 and ISO 14001 provide practical tools for companies and organizations looking to identify and control their environmental impact
and constantly improve their environmental performance