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JCP Media's Organizational Buying Pattern

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JCPMedia is the print and paper purchasing arm for JCPenney, the fifth-largest retailer in the United States and the largest catalog merchant of general merchandise in the Western Hemisphere. Paper is serious business at JCPMedia, which buys paper for JCPenney catalogs, newspaper inserts, and direct-mail pieces. Some 10 companies from around the world, including International Paper in the United States, Stora Enso in Sweden, and UPM-Kymmene, Inc., a Finnish paper company, supply paper to JCPMedia.

The choice of paper and suppliers is a strategic business decision given its revenue and expense consequences. Therefore, JCPMedia paper buyers work closely with JCPenney marketing personnel and within budget constraints to assure that the right quality and quantity of paper is purchased at the right price point for merchandise featured in the millions of catalogs, newspaper inserts, and direct-mail pieces distributed every year. In addition to paper quality and price, buyers formally evaluate supplier capabilities. These include a supplier’s capacity to deliver selected grades of paper from specialty items to magazine papers, the availability of specific types of paper to meet printing deadlines, and ongoing environmental programs. For example, a supplier’s forestry management and antipollution practices are considered in the JCPMedia buying process.

The next time you thumb through a JCPenney catalog, newspaper insert, or directmail piece, take a moment to notice the paper. Considerable effort and attention was given to its selection and purchase.

Companies can learn from this example, purchasing paper for JCPMedia is one example of organizational buying. Understanding organizational markets and buying behavior is a necessary prerequisite for effective business marketing - the marketing of goods and services to companies, governments, or not-for-profit organizations for use in the creation of goods and services that they can produce and market to others-.

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YouSigma. (2008). "JCPMedia's Organizational Buying Pattern." From http://www.yousigma.com.

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