BUSINESS TO

BUSINESS BUYING
By: B. Kraus
The 6 Stage Buying Process
 Stage 1: Need Recognition

In the first stage of the B2B buying process, the

buying organization recognizes, through either
internal or external sources, that it has an unfilled
need.
 Stage 2: Product Specification

Making a list of potential specifications that

vendors will use to develop their proposals.
 Stage 3: RFP Process

The Request For Proposals (RPF) is where

vendors or suppliers bid of supplying the
components or specifications.
 Stage 4: Proposal Analysis, Vendor Negotiation,
and Selection

Evaluate proposals received, narrow down

suppliers, and discuss key terms such as price,
quality, delivery, & financing.
 Stage 5: Order Specification

In the fifth stage the firm places its order with the
preferred supplier including a detailed description of
the goods, prices, delivery date, and sometimes
penalties for noncompliance
 Stage 6: Vendor Performance
Assessment Using Metrics

Firms analyze their vendors’ performance so they can

make decisions about future purchases.
Buying Center Roles
 Buying Center Roles

◦ Initiator - suggests buying the product or service

◦ Influencer - influences others in the final decision
◦ Decider - ultimately determines buying decision
◦ Buyer – handles paperwork of purchase
◦ User – consumes or uses the product or service
◦ Gatekeeper – controls information and/or access to decision makers
& influencers
Organizational Buying Culture
 Organizational Buying Culture

◦Autocratic – one person makes decision alone

◦Democratic – decision made by majority rules
◦Consultative – one person makes decision based on
input from others
◦Consensus – all members must reach a collective
agreement