Decision making unit
Also called: dmu or buying center
A decision making unit is the team within an organization responsible for making a purchasing decision. The term was defined by Philip Kotler, professor and author of several standard works on marketing management. Kotler points out the importance of paying attention to the entire chain of people involved in a decision-making process.
Although in practice organizations are often run by one person or a small group, many people are involved in making important decisions. As a booster, as a stakeholder, as a contact person to the outside world or as the one with formal decision-making authority. The decision making unit can have a fixed composition, or be assembled at the project level around a particular procurement need.
Who is responsible for decisions?
Within contacts with potential customers, whether at the marketing level or during warm individual contacts with potential customers, it is good to consider the decision making unit. For example, by taking into account in communication the role of the person you are talking to and the different perspectives and priorities within the whole chain.
Possible roles within the decision making unit are:
- Initiator
The one who is looking for a solution to a problem.
- Users
Those who deal with products or services to be purchased on a daily basis. Although they are often not at the table when decisions are made, they have an interest in being included in the decision-making process. These can be people within the organization (employees) as well as outside (customers).
- Influencers (influencers).
These are employees or departments that have something to say about the decision to be made. This can include, for example, giving advice and setting preconditions.
- Buyer (buyer).
The person responsible for contacting suppliers and formally completing the purchase or order. The influence this role has within decision making varies by organization.
- Gatekeeper.
The gatekeeper has a central and coordinating role in the run-up to making a decision. He ensures the exchange of information and establishes contacts between the various parts of the buying center.
- Decision maker.
The person with the highest responsibility who makes the final decision.
One person or department may perform several of these roles. This is especially true in smaller organizations. Also, not all roles are always involved in making purchasing decisions. A repeat purchase of office supplies is an example of a decision that can be made by a few people, as opposed to switching to a CRM system from another vendor.
