Organisational Buying Behaviour

An understanding of organisational buying behaviour is an essential prerequisite to preparing account plans and managing sales as a strategic activity. The material in this section is presented in subsections that address the key elements in organisational buying behaviour.

These are:

• What influences organisational buying behaviour? – This details the forces and influences on buying behaviour.

• Who buys and who influences buying decisions? – This addresses the concept of the organisational buying centre.

• How do they buy? - This addresses the buying process.

• How do they choose? - This details the choice criteria.

• Have they bought before? - This details the buying situation.

• How important is the purchase? - This identifies the perceived risk

Key tasks at each stage move the buying process towards a decision that is ‘right' for the organisation and the members of the buying centre. These stages are considered in turn.

• Recognise problem - The buying organisation identifies that they have a need for a product, either as a result of the company identifying a need (internal need recognition) or in response to a seller's marketing or sales activities. Internal needs result from development needs, such as in response to changing business goals or the business environment. Sellers' marketing activities include routine contacts or specific promotional activities, such as advertising, publicity or exhibitions.

• Develop specification - The buyer determines the nature of the product required. This starts with general details and moves to developing more detailed specifications. The buyers may use various sources of information, such as users, magazines, influencers, etc. to define these specifications. Formal and informal meetings and discussions between buying centre participants helps shape this specification.

• Search for products/suppliers - Alternative suppliers are identified and are invited to give further details of their products and services and their availability. Searching may be active, where the buyers seek out alternative suppliers, possibly by visiting trade fairs or scanning news reports, or passive, responding to contact by potential suppliers. Some companies post information on contracts on their websites or advertise in papers to encourage responses. Whichever approach is used, the buying organisation and the potential suppliers connect as part of the process of determining their suitability to provide the product or service required.

• Acquire and analyse proposals - Soliciting detailed proposals is the next stage in the process, and this is the first level of evaluation