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5.6.1 Purchase Process in Business Markets

In B2B markets, the purchase and sales processes differ significantly from B2C. The complexities arise due to the involvement of multiple decision-makers, high-value transactions, and broader organizational impact.

Example of B2B Requirements Mapping

When a manufacturing company decides to purchase a new machining center, each member of the buying center may have different concerns: - Factory Head: Installation time and operator training. - Maintenance Manager: Service contracts and machine reliability. - Procurement Manager: Pricing details. - CEO: Impact on profitability and ROI. - COO: Switchover time and operational challenges. - CFO: Financial terms of the deal.

Strategy for B2B Marketers

  1. Identify Key Stakeholders:
  2. Determine all members of the buying center and their specific needs.

  3. Understand which members hold significant influence over the decision.

  4. Tailor Communications:

  5. Align the product's benefits to the unique requirements of each stakeholder.

  6. Ensure messaging addresses the concerns of influencers and decision-makers effectively.

  7. Assess Influence and Criteria:

  8. Evaluate the role and influence of each stakeholder.
  9. Understand their decision criteria to position the product accordingly.

Stages in the B2B Buying Process

  1. Problem Recognition:

  2. Initiated by identifying a need within the organization.

  3. General Need Description:

  4. All relevant departments contribute to outlining their specific requirements.

  5. Product Specification:

  6. Develop a comprehensive list of minimum criteria and specifications.

  7. Supplier Search:

  8. Tendering process to identify potential suppliers.

  9. Proposal Solicitation:

  10. Suppliers submit proposals, including product details, company credentials, and past experiences.

  11. Supplier Selection:

  12. Evaluate suppliers based on:
    • Technical Bids: Product specifications and capabilities.
    • Financial Bids: Cost considerations.

  13. Selection is typically weighted (e.g., 70% technical, 30% financial).

  14. Order Routine Specification:

  15. Finalize contracts, including frequency, lead times, and delivery terms.

  16. Performance Review:

  17. Assess supplier performance based on quality, delivery, and adherence to terms.
  18. Contracts may be renewed or terminated based on satisfaction.

Types of B2B Buying Situations

  1. Straight Rebuy:
  2. Routine purchases of standard items (e.g., consumables like paper or office supplies).

  3. Minimal steps are involved; typically need identification and placing the order.

  4. Modified Rebuy:

  5. Similar products with slight changes in specifications (e.g., paper for color printing).

  6. Requires need assessment and updated specifications but uses existing vendors.

  7. New Task:

  8. Complex, high-value, first-time purchases.
  9. Involves all steps in the buying process.

Simplifying Complexity

Just like in B2C, the complexity of the purchase process depends on the level of involvement: - Straight Rebuy: Minimal involvement. - Modified Rebuy: Moderate involvement. - New Task: High involvement, requiring detailed evaluation and multi-step processes.

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