Major elements of the business process.

Question: Discuss the business buying process; discuss the major elements of the business process.

Answer: A buying process is the series of steps that a consumer will take to make a purchasing decision. Business buying process is quite different from the consumer buying process, because in this case the business market is involved in different set of characteristics and demands. The companies doing business in business markets adopt separate marketing strategies.

The business buying process is split into eight stages. Let's take a closer look at the process by examining each step in some detail:

1.     Problem Recognition: In the first stage of business buying process, a certain problem is recognized by someone in the organization, so that it can be solved through the purchase of any new product or service. 

2.     Description of General Need: This stage starts when a clear need has been identified by the organization. In this step description about the general need has been prepared which shows general characteristics and the quantity of the required product. 

3.     Specification of Product: In this stage, the organization that is involved in the business buying process prepares a detailed list of the technical specifications of the desired product through value analysis conducted by the engineering team. The professional team covers the best features and characteristics required in purchasing the product. The selling organizations can also use this step to increase their sales.

4.     Search of Supplier: In this step of the business buying process, the buying organization searches the suppliers in order to make a purchase with the best one. For this purpose a list of competitive vendors is prepared by the buying organization through the use of supplier directories, aid of a computer (internet), or contacting other organization for obtaining of recommended names. 

5.     Proposal Solicitation: In this stage the suppliers are asked to submit their proposals. In some cases, some suppliers send only their salespersons or simple catalogs. But when the desired product is expensive and complex than proper formal presentations and detailed written proposals are required from the qualified suppliers. The marketers of the business organizations should also be skilful in writing and presentation of business proposals to the buying organizations.

6.     Selection of Supplier: At this stage the final supplier is selected from the list of potential suppliers who have submitted their proposals to the buying organization. The selection team of the buying organization reviews the proposals of all suppliers and list the offered attributed on the basis of the following attributes

§  Quality of product

§  Delivery time

§  Ethical corporate behaviour

§  Reasonable price

§  Honest communication

§  Past performance and reputation

§  Repair and maintenance services etc.

7.     Order-Routine Specification: The order-routine specifications are prepared in this step which contains the order having a final list of the specifications, the selected supplier, delivery time, quantity required, price and repair and maintenance services etc.

8.     Performance Review: This is the last stage of the business buying process in which the performance of the supplier is reviewed by the buying organization. Mainly the Consumer Behaviour or the satisfaction level of users serves as the basis of the performance reviewing factor for the product purchased from business supplier. The performance review helps in future decision of the business buying process in the form of straight rebuy, modified rebuy or new task buying. The selling organization also takes into account the same factors that would affect in the performance review by the buying organization.