How Businesses Buy

Business purchasing follows the same five-step buying process faced by consumers:

1.Need Recognition

2.Search

3.Evaluate Options

4.Purchase

5.After-Purchase Evaluation.

While the steps are the same as consumer purchasing, the activities occurring within each step are quite different.

1. Need Recognition

In a business environment needs arise from just about anywhere within the organization. The Buying Center concept shows that Initiators are the first organizational members to recognize a need. In most situations the Initiator is also the User or Buyer. Users are inclined (схильні, мають тенденцію) to identify the need for new solutions (i.e., new products) while Buyers are more likely to identify the need to re-purchase products.

As part of this step, a specifications document may be generated that lays out the requirements of the product or service to be purchased. Several members of the Buying Center may be involved (залучені) in creation (створення) of the specifications. For the marketer, establishing(який встановлює) close(тісний) contact with those who draw up the specifications may help position the marketer’s product for inclusion(включення) in the search phase.

2. Search

The search for alternatives to consider as potential solutions to recognized needs is one of the most significant differences between consumer and business purchasing. Much of this has to do with an organization’s motive to reduce costs. While a consumer will probably not search hard to save two cents a gallon on gas, a company that has a large fleet of cars or trucks certainly will. In fact, this step in the purchase process is where professional buyers make their mark. The primary intention of their search efforts is to identify multiple suppliers who meet product specifications and then, through a screening process, offer a selected group the opportunity to present their products to members of the Buying Center.

3. Evaluate Option

Once the search has produced options(варіанти), members of the Buying Center then choose among the alternatives. In more advanced (складний) purchase situations, members of the Buying Center may evaluate(оцінювати) each option using a checklist of features(властивість, особливість) and benefits(перевага, вигода) sought by the buyer. Each feature/benefit is assigned(визначати) a weight that corresponds(відповідає) to its importance to the purchase decision.

4. Purchase

To actually place the order(зробити замовлення) may require the completion(завершення, остаточне оформлення) of paperwork (or electronic documents) such as a purchase order. Acquiring(одержання) the necessary approvals(затвердження, схвалення) can delay(затримувати, відкладати) the order(замовлення) for an extended(тривалий) period of time. And for very large purchases, such as buildings or large equipment, financing options may need to be explored.

5. After-Purchase Evaluation

After the order is received the purchasing company may spend time reviewing(розглядаючи, переглядаючи) the results of the purchase. This may involve the Buyer discussing product performance issues with Users. If the product is well received it may end up moving to a straight re-purchase status thus eliminating(виклчаючи) much of the evaluation process on future purchases.

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