Question

Describe in detail the decision journey organizational buyers follow in making purchase decisions and the resulting strategy implications for the business marketer. Use citations

Answer 1

Every business needs to take some vital business decisions regarding its sale and purchase policies. Organizational buyers play a crucial role in this regard and follow this decision journey. It consists of the following steps-

1.Problem/need analysis-The first step is to identify the problem. For eg- outdated or defective machinery.

2. Deciding the characteristic and quantity required- Then the next step is to decide how much we need the machinery of what size whar cost and what output generating capacity.

3. Development of product specification- Then the general specifications are laid down and converted into specific one's by the experts to enable easy purchasing.

4.Search and qualification of potential sources- Then, a market research and anayanal is done to determine the various sources of the market and ensure cost saving and standardization.

5.Acquisation and analysis of proposals- Different quotations provided by the sellers are then compared and analysed. Those who match with the requirements are then shortlisted.

6.Evaluation and selection of suppliers-A final evaluation is done on the basis of various points like Past transactions, quality offered, cost and after sale services and then the final supplier is selected.

7. Selection of an order routine- Then the order is placed with the selected supplier telling all the specifications including quatity physical features delivery time and after sale services required.

8. Performance feedback and evaluation-Finally an analysis is done if we have to re-order, modify the order or drop the seller depending upon the serviese provided by him previously. The same is communicated to the seller.