ORGANISATIONAL BUYING
The organisational buying process is more formal than that of the consumer buying behaviour. It involves various levels of participants of the organisation.
Participants in the organisational buying process:
Initiator
Influencer
Gate Keepers
Decision Maker
Purchasers
Users
Problem Recognition:
The buying process stands with the recognition of the problem which is to be met by purchase of a product. The organisation does so because due to some reasons like to develop new product, where in equipment & material are required or the malfunctioning of the currently available the machinery which require new party or the unsatisfactory results of the already purchased products.
General Need Description:
The buyer then describes the general charismatic of the materials required in terms of the standards, quality, quantity, etc… In this process the helps of technically qualified manpower could be takes for the description of the need. The general description could also include reliability, durability & various other attributes.
Product Specifications:
The product required to meet the needs are clearly specified. Technical specification & the quality expected are also specified.
Product Value analysis:
It is an approach adopted by organisations for cost reduction in which the various components are thoroughly an analysed in order to extract maximum utility out of it.
Supplier Search: In this stage the organisation tries to identify the most appropriate suppliers/vendors. The suppliers are notified about the requirement through advertisements or some notification. The vendors try to get listed in the various catalogues regarding the suppliers of the market place. This listing helps the supplier to have a reputation in the market. So that buyers would have a good impression about them.
Proposal Solicitation:
The buyer will, in this stage, invite, qualified suppliers to submit proposals which comprises of all the details regarding the products under consideration. The buyer goes through these proposals & selects a few which he feels is the most appropriate one. These proposals are further asked for presentations.
Supplier Selection
After the presentations being given the buyer selects for the most appropriate vendor.
Order Routine Specification:
After the selection of the supplier negotiation of the final order takes place between the buyer & the supplier. Technical specification, quality specification, quantity required, delivery time, warranties etc…, are discussed during these negotiation. In case of maintenance & repair buyers are employing blanket contract concept rather than periodic purchase order.
A blanket contract establishes a long term relationship which supplier promises to re supply the products at agreed up on prices over a specific period of time.
Performance Review:
The buyer keeps reviewing the performance of the suppliers at regular intervals in order to ensure there is maximum profit attain from the present supplier.
Source: Books & Notes
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By: Management Duniya
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