SALES AND SELLING

Sales and Selling

Sales and Selling

Stages in the Organizational Buying Process

The business buying process is very similar to the consumer buying process, with a few exceptions. Business buying is not generally need-driven but it is instead problem-driven. (Business markets and business Buying Behaviour, 2004)

Stage One

Need Recognition - the need is recognized for the product, as we saw in our example above the demand for the fabric is a derived demand, (Humphreys 2002) the company wouldn't have that need if it has not received any orders to manufacture the new design.

Stage Two

General Need Description - As the operation department analyzed the fabric and accessories requirement according to the specification of the design, (Yeshin 2005) it orders the procurement bill to the purchase department which is responsible for the purchases in the organization. In its procurement letter it will specify what it will require and how much it will require.

Stage Three

Product specifications - the operations department is specialist in the fabric area it will specify each and every detail to purchase department. (Kotler 2004, 13)What sort of fabric to be purchased how much to be purchases. What are the accessories requirements of the design and in what quantity they will be required.

Stage Four

Supplier Search - once the order is approved, the purchase department will search for the suitable supplier in the market. The purchase department will keep in considerations the key points highlighted in the product specifications so that when it buys the fabric it can get the best bargains on the order. The question here arises is if the operations department knows so much why not it go ahead and buy itself. (Humphreys 2002, 13)The answer to it that as the organization has to deal and negotiate with different buyers and suppliers at various times, it is better that the company presents a uniform face as it will help in building long term relationship with the suppliers. Few people dealing again and again will also leads to familiar negotiation. Apart from that the question of specialization comes in picture - specialization in building supplier development opportunities. It will help the organization in securing long term suppliers with mutual trust and confidence. (Yeshin 2005)

Stage Five

Proposal Solicitation - As a few numbers of competent suppliers are selected, a bid request is sent to them so that they can apply for the order.

Stage Six

Supplier selection - once the proposal solicitation is over the supplier ...