Question

Business buying process is the process where business buyers determine which products and services are needed to purchase and then find, evaluate, and choose among alternative brands. Buyers who face a new-task buying situation usually go through all stages of the buying process.

Name and describe the stages of the business buying process. Give real life examples and include a diagram to illustrate your answer. (700 Words)

Answer 1

Answer :

In comparison to Business buying process, companies tend to have a more organized purchasing strategy. Instead of purchasing impulsively, companies will compare prices, compare providers, and compare goods and services quality before completing a sale. Business purchases include the identification of the problem, product speculations to solve it, the search for potential products, the selection of a supplier and order of the product, and final assessment of the performance of the product and the supplier.Let's discuss the stages of the business buying process.

1.Identification of problems:

Once an individual identifies an issue or need, the transaction begins. He requires the product to fulfill this requirement. The reorganization of the problem is named. This may be attributed to factors inside or outside. The organization agrees internally to launch a new product. To do that, a business needs new products, machinery, extra resources and money, new suppliers, and hires a manager who is responsible for the entire project. Everyone in the organization is encouraging the CEO, who chooses the time to move to a bigger company, from his customer service representative on paper. In some cases, a sales representative can help someone identify a need that nobody has previously recognized.

2..Description of General Need

The organization determines which product or service is needed after the problem has been identified. The office manager may opt to have more documents when an office is out of the printer paper. However, a software engineer in the same business could suggest that the company is paperless by providing tablets to all employees in the office. The team of experts is focusing on improving sustainability, size, reliability, core value, etc.

3.Specifications of the product:

First, with the aid of technical staff, the company plans product requirements. In this product specification, cost reduction is an important issue. That is why the workers have carefully revamped, simplified, or implemented cheaper strategies and settle on the best features of the product. After general requirement has been accepted by the customers, they limit the choices by deciding what the product or service will deliver. When you decided on tablets, you 'd determine their ideal size, the memory of the tablets, etc. If they agree on paper, the quantity and quality of the necessary paper will be assessed.

4.Potential Service Provider:

The third stage of the buying process is the hunt for potential suppliers. If the Company does not have an existing relationship with the vendor who sells the product, then it is always important for the Company to take a look online, to attend trade shows, or by telephone to reach suppliers. Today, the Internet is changing the seeking of knowledge revolutionarily. Small providers also provide internet connectivity.

5. Proposal request:

The buyer calls on eligible suppliers to make proposals at this stage. Some suppliers provide the purchaser with their sample product; refer to their websites or promotions. If the product is costly, the suppliers show a product presentation and typically join a formal RFP, a Proposal Request and forward it to their favorite suppliers. Alternatively, they can publish the process so that everybody can submit a proposal. This may be as easy as testing the cost on a website for smaller transactions.

6, Evaluation and Selection of Providers:

This section of the process compares suppliers' plans and costs to find out who provides the best price and the highest quality. The prices alone are always enough for a company to be won by other firms, as the prices are balanced against the funding options and credibility of the manufacturer, and the question of whether or not potential products or services will be sold to the enterprise by a provider. Then all manufacturers are paid for the customer and pick the best.

7.Order-routine specification:

The buyer prepares a formal written order for the selected suppliers during this business buying process. It is called a specification of an order-routine. This routine order includes technical specification, quantity, quality, time of delivery, return policies, guarantees, repair, operation, and so forth. This may include payment to the manufacturer, agreement on terms and conditions as well as a negotiation of delivery times and of any other items to be supplied such as installation or product training.

8.Review of performance:

Buyer rates the entire production of the manufacturer here. The purchaser asks its users for their products and services and asks them to assess their satisfaction. The Leistungsprüfung helps the purchaser to decide whether to continue, change, or drop the company. The seller ensures the buyer about the expected satisfaction. For larger purchases, this could be a formal review involving key decision-makers in the organization and the supplier's sales staff. It is also casual for smaller transactions. For example, if a paper box is ordered late or damaged by the company, without the supplier having ever been informed of the problem, the company may decide not to purchase from the supplier again.

Diagram : Business Buying process

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