The business buying process
The below figure shows that the business buying process has eight stages. All buyers go through this stage.
See the figure:-
Here, you’ll find eight major steps of the business buying process. Usually, a new buyer goes through these stages. Buyers may make straight, modified, contrast purchasing decisions. Now, we’re going to examine these eight stages.
1. Problem recognition: The buying starts when a person recognizes a problem or need. He wants a product that can meet this need. This is called problem reorganization. This can result from internal or external factors. Internally, a company decides to launch a new product. To do this, a company needs new raw materials, equipment, extra labor and capital, new suppliers, and selects a person as a manager who will look after the whole production.
But externally, buyers may have some new experiences after watching TV ads or sales calls, product reviews, or offering a lower price. In showing advertising, marketers want to alert customers about the problem and after then they also show how their products solve the problem.
2. General needs description: After recognizing a need, general needs description is the next step. It describes the characteristics and quality of the items. The expert team tries to improve durability, price, reliability, core value, and other attributes.
3. Product specification: Next the organization develops product specifications with the help of an engineering team. Cost reduction is an important issue in this product specification. That’s why the team carefully redesigned, standardized or adopts less costly methods and decides the best characteristics of the product.
4. Supplier search: In this stage, a buyer wants the best supplier. Buyers can make a short list of qualified suppliers, search on Google, and watch a review on YouTube, by contracting them. Today, Internet technology brings a revolutionary change in finding information. Small suppliers also get facilities having internet.
5. Proposal solicitation: In this stage, the buyer invites qualified suppliers to submit their proposals. Some suppliers offer their sample of the product to the buyer; refer to their websites or promotional materials. If the product is expensive then the suppliers show a presentation of their product.
6. Supplier selection: Here, the buyer reviews the supplier’s proposals and selects the best one among them. In this selection, the members make a list of desired supplier attributes and their importance. These attributes are product quality, images, reputation, delivery systems, ethical corporate behavior, honesty, and competitive prices. Then the buyer rates all suppliers and chooses the best one.
7. Order-routine specification: In this business buying process, the buyer prepares a formal written order for the chosen suppliers. It is known as an order-routine specification. This routine order contains technical specifications, quantity, quality, delivery time, return policies, warranties, maintenance, repair, operation, etc.
8. Performance review: Here, the buyer reviews the supplier’s whole performance. The buyer asks their users about the products and services and requests them to rate their satisfaction. The performance review helps the buyer to take any decision to continue the business or modify or drop. The seller ensures the buyer about the expected satisfaction.
In all, this is a simple view of the eight stages of the business buying process. However, the real process is much more complex than this one. Straight re-buy, modified re-buy, new task, in contrast, buying situation has unique requirements.