The Stages in the Organizational Buying Process - 1471 Words

Chapter 4: Business, Government and Institutional Buying Process 4.4 The Stages in the Organizational Buying Process The process is fundamentally the same as described for consumer buying -- many of the steps are similar, if not identical. As with consumer buying, because some decisions are more complex than others, not all decisions will involve all the steps discussed. Nor will the steps require the same degree of attention, resource commitments, and personnel. New task decisions normally involve all the steps we will discuss; steps may be abbreviated or skipped entirely for modified rebuys and straight rebuys. However, it is always important to recognize that, for every organizational purchase decision, the over-riding objective is†¦show more content†¦Value analysis teams may even involve representatives from the seller’s organization. By involving vendors in the value analysis process, buyers can ensure that suppliers have a better understanding of their needs and, as a result, are better able to design products that deliver the level of required performance. The suppliers rep resentative to the value analysis team plays an active role in the teams efforts by providing timely and valuable recommendations for design changes, and critical data concerning the vendors products. 3. SEARCH FOR AND QUALIFY VENDORS The next logical step in the organizational buying process is to identify the most appropriate products and the suppliers of these products. This is a rather simple task for straight rebuy purchase decisions. Vendors are often selected from a pre-approved vendor list, if the vendor will be changed at all. Modified rebuys and new task decisions, however, will entail more extensive searches. This is, of course, particularly true for the new task decision. In fact, a major obstacle associated with a new task decision is often one of identifying sources of information about potential suppliers. If the buying firm has very little experience with purchasing products of this type, this can be a rather difficult task. Generally, sources of relevant supplier data can be found in trade directories, talking to other firmsShow MoreRelatedâ€Å"Knowledge of the Process That Organisational Buyers Follow in Making Purchasing Decisions Is Fundamental to Responsive Business Marketing Strategy.†1702 Words   |  7 Pagesâ€Å"Knowledge of the process that organisational buyers follow in making purchasing decisions is fundamental to responsive business marketing strategy.† INTRODUCTION In today’s globalised and forever changing world of business, different organisations around the world are finding it very difficult not only to compete but also to be managed efficiently and effectively by management. The world of business is very volatile and forever unpredictable and this is caused by changing and difficult forcesRead MoreOrganizational Markets And Buying Behavior Essay978 Words   |  4 PagesOrganizational markets and buying behavior is essential for effective business-to-business marketing, so it is important to recognize the features of organizational buyers and their buying behavior. There are three different organizational markets and they consist of: industrial, reseller, and government. Industrial organizations in some way re-claim a product or service they purchase before selling it to the next buyer. Take Corning, Inc. for example; this organization converts different blendsRead MoreHow Buyer Behavior Affects Marketing Activities in Different B uying Situations1000 Words   |  4 Pages2d. 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As a result of this, the organizational functions were divided into segments and some of those functions were outsourced to expert companies who can do the same job for much less cost. Make or buy decision is always a valid concept in business. No organization should attempt to makeRead MoreThe Buying Processes for a Recently Purchased High and Low Involvement Product924 Words   |  4 Pagesanalysis is to evaluate the buying processes for a recently purchased high and low involvement product. The high involvement product is a new Honda Accord and the low involvement product is a hamburger purchased for lunch. Using the five stages of the Purchase Decision Process as a framework, both of these purchases are evaluated. The paper concludes with recommendations as to how marketers can capitalize on the five stage model of the Purchase Decision Process. 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Therefore, the ï ¬ rst step in the acquisition process is to determine what is needed and why† (Johnson, P. F., Leenders, M. R., amp; Flynn, A. E. 2010). Need identification depends on a number of things. The need is the start of the process. Once you have the need, then you can proceed with the commercial