Purchasing marketing, also known as reverse marketing, is the use of marketing techniques by buyers to influence their suppliers. It is a relatively new concept, but it is gaining popularity as businesses realize the potential benefits it can offer.
The goals of purchasing marketing
The main goals of purchasing marketing are to:
- Build and maintain strong relationships with suppliers
- Encourage suppliers to innovate and develop new products and services
- Get the best possible prices and terms from suppliers
- Reduce the risk of supply chain disruptions
How purchasing marketing works
Purchasing marketing can be used in a variety of ways, but some common tactics include:
- Providing suppliers with feedback and suggestions: Buyers can share their insights with suppliers about market trends, customer needs, and product development opportunities. This can help suppliers to improve their offerings and better meet the needs of their customers.
- Collaborating with suppliers on joint marketing initiatives: Buyers and suppliers can work together to develop and execute marketing campaigns that promote both of their brands. This can help to increase awareness of the buyer’s brand among the supplier’s customers, and vice versa.
- Offering suppliers incentives: Buyers can offer suppliers things like early payment, higher volumes, or exclusive contracts in exchange for better prices, terms, or service.
- Creating a competitive environment among suppliers: Buyers can encourage competition among their suppliers by soliciting bids from multiple vendors and negotiating prices. This can help to ensure that buyers are getting the best possible deals.
Benefits of purchasing marketing
There are a number of potential benefits to using purchasing marketing, including:
- Improved supplier relationships: By building strong relationships with suppliers, buyers can reduce the risk of supply chain disruptions and get better prices and terms.
- Reduced costs: Purchasing marketing can help buyers to reduce their costs by getting better prices from suppliers and by reducing the risk of supply chain disruptions.
- Increased innovation: By providing feedback and suggestions to suppliers, buyers can encourage them to innovate and develop new products and services that better meet their needs.
- Improved quality: By working with suppliers to improve their processes and quality control systems, buyers can ensure that they are getting high-quality products and services.
Examples of purchasing marketing
Here are a few examples of how purchasing marketing can be used in practice:
- A car manufacturer might work with its suppliers to develop new safety features for its vehicles.
- A food retailer might provide its suppliers with feedback on customer preferences and market trends.
- A clothing manufacturer might offer its suppliers early payment in exchange for faster delivery times.
- A technology company might solicit bids from multiple suppliers to ensure that it is getting the best possible price on its components.
Purchasing marketing is a powerful tool that buyers can use to improve their relationships with suppliers, get better prices and terms, and reduce the risk of supply chain disruptions. By using marketing techniques to influence their suppliers, buyers can achieve a number of strategic goals.