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:
   • Determine all members of the buying center and their specific needs.
   • Understand which members hold significant influence over the decision.
2. Tailor Communications:
   • Align the product's benefits to the unique requirements of each stakeholder.
   • Ensure messaging addresses the concerns of influencers and decision-makers effectively.
3. Assess Influence and Criteria:
   • Evaluate the role and influence of each stakeholder.
   • Understand their decision criteria to position the product accordingly.

Stages in the B2B Buying Process

1. Problem Recognition:
   • Initiated by identifying a need within the organization.
2. General Need Description:
   • All relevant departments contribute to outlining their specific requirements.
3. Product Specification:
   • Develop a comprehensive list of minimum criteria and specifications.
4. Supplier Search:
   • Tendering process to identify potential suppliers.
5. Proposal Solicitation:
   • Suppliers submit proposals, including product details, company credentials, and past experiences.
6. Supplier Selection:
   • Evaluate suppliers based on:
     • Technical Bids: Product specifications and capabilities.
     • Financial Bids: Cost considerations.
   • Selection is typically weighted (e.g., 70% technical, 30% financial).
7. Order Routine Specification:
   • Finalize contracts, including frequency, lead times, and delivery terms.
8. Performance Review:
   • Assess supplier performance based on quality, delivery, and adherence to terms.
   • Contracts may be renewed or terminated based on satisfaction.

Types of B2B Buying Situations

1. Straight Rebuy:
   • Routine purchases of standard items (e.g., consumables like paper or office supplies).
   • Minimal steps are involved; typically need identification and placing the order.
2. Modified Rebuy:
   • Similar products with slight changes in specifications (e.g., paper for color printing).
   • Requires need assessment and updated specifications but uses existing vendors.
3. New Task:
   • Complex, high-value, first-time purchases.
   • 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.