“Knowledge of the Process That Organisational Buyers Follow in Making Purchasing Decisions Is Fundamental to Responsive Business Marketing Strategy.”

Topics: Marketing, Organization, Decision making Pages: 5 (1715 words) Published: August 31, 2011
“Knowledge of the process that organisational buyers follow in making purchasing decisions is fundamental to responsive business marketing strategy.”

In today’s globalised and forever changing world of business, different organisations around the world are finding it very difficult not only to compete but also to be managed efficiently and effectively by management. The world of business is very volatile and forever unpredictable and this is caused by changing and difficult forces, both within the organisations and surrounding the organisations either directly or indirectly .These rapidly changing forces affects organisations as well as the organisational buying process. The organisational buying process explains the time at which a need arises for product or service to the final purchase decision of acquiring the product or service. Wind & Thomas (2001, p. 239) suggested that the organisational buying process and the composition of the buying center tend to vary depending on two sets of factors: the buying situation (whether the purchase is a new task, a modified re buy, or straight re buys) and the idiosyncratic personal, interpersonal, organisational and environmental conditions. Marketing teacher.com suggested that complex forces that encircle the organisational buying process are environmental forces, organisational forces, group forces and individual forces. Knowledge of the process that organisational buyers follow in making purchasing decisions is fundamental to responsive business marketing strategy because as marketers come up with relevant and appropriate strategies they must first understand a certain process which very vital and it is called the organizational buying process and it consists of 8 major steps which will be discussed fully shortly. According to (Wind & Thomas, 2001) the first step is recognizing the need which is normally from within the organization and it is a step where by a problem is identified for example if the company wants to buy new and better technology to enhance their performance. The second step is the general description of need and in this stage the organization will determine the standard of quality they want and also performance specifications which will be followed by development of detailed specifications, in this step the organization will carefully do a systematic appraisal of the design, quality and performance requirement, they will also set the buying criteria of that particular technology they want. The fourth stage would then be a search for a qualified supplier which involves selecting the names of the vendors and normally vendor analysis is performed in terms of costs, reliability and JIT operations (just in time operations). The fifth step is acquisition and analysis of proposals which is all about requests for specific proposals made to qualified vendors e.g the organization will now consider giving different suppliers a chance to submit their proposals on how much they demand and the type of technology they would deliver. The sixth stage is the evaluation of proposals and selection of suppliers and in this step various proposals will be weighed and analyzed before negations can be held on prices, delivery and long term commitment of the two parties. The seventh step involves selection of an order procedure which is all about an agreement between sellers and buyers and then orders will be forwarded to the agreed vendor. Then last step is performance, feedback and evaluation, this step involves a determination by the user department as to whether the purchase item has solved the original problem for example after the vendor supplies the requested technology equipment the organization will asses if it has improved the productivity level in the organization. Then they would evaluate if the problem has been solved which was identified in the first step, if not then this would mean that the organization will have to re design the strategies again....
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