There are six stages in the organization buying process:
- Need Recognition: The buying process starts when individuals recognize a problem or need. Need recognization can arise under a variety of situations, for example accountant needing a calculator, researcher needing a book.
- Product Specification: This stage involves development of product performance specifications to solve the problem. Technical people assist in this job. For example,construction firms require detailed specifications.
- Supplier Search: Possible suppliers for the product are searched and located at this stage. Suppliers are identified through:
- Internal Search: The sources can be company files, catalogs, market information system and purchase department, etc.
- External Search: It is by soliciting proposals from known suppliers or through public notice. Pre-qualification of suppliers may be needed. This stage produces a list of alternative suppliers.
4. Proposal Evaluation : Proposals are invited from suppliers. They can be based on
competitive bidding. Tenders and quotations may be used. They also can be separated into
technical proposal and financial proposal. The proposals are evaluated to determine
whether the products meet performance specifications. Suppliers are evaluated for
capability, and service. Committees may be used for evaluation.
5. Purchase Decision: The supplier is selected. Negotiations are made. An order is placed.
Several suppliers may also be used. Specific details regarding terms of sale, credit
arrangement and technical services are worked out.
6.Post-purchase Behavior: The performance of product and supplier is evaluated at this
stage. Actual performance is compared with specifications. If the performance is not
satisfactory, repeat orders are not placed with the supplier.
Marketers need to understand buyer behavior at each stage of the organizational buying
process.
competitive bidding. Tenders and quotations may be used. They also can be separated into
technical proposal and financial proposal. The proposals are evaluated to determine
whether the products meet performance specifications. Suppliers are evaluated for
capability, and service. Committees may be used for evaluation.
5. Purchase Decision: The supplier is selected. Negotiations are made. An order is placed.
Several suppliers may also be used. Specific details regarding terms of sale, credit
arrangement and technical services are worked out.
6.Post-purchase Behavior: The performance of product and supplier is evaluated at this
stage. Actual performance is compared with specifications. If the performance is not
satisfactory, repeat orders are not placed with the supplier.
Marketers need to understand buyer behavior at each stage of the organizational buying
process.
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