In most cases, the purchasing process starts with a problem solved by a product. But for some purchases, this is not the case. In some cases, spending a lot of money does not solve the problem, but the amount of money matters. Therefore, B2B purchasing differs from B2C purchasing, and the approach differs.
For example, a B2B purchasing process can start when the company realizes they need to purchase new technology. First, a company salesperson selling the technology will be invited to present the solution. Then, the salesperson will convince the company’s management team to buy the technology.
Next, the marketing department will present to the board of directors why this spending is necessary and how it will help their business.
People usually make purchasing decisions with different roles. Therefore, it is crucial to understand these roles and how to act accordingly to become a successful seller.
Why is B2B Purchasing Difficult?
B2B purchasing is one of the most challenging areas in selling because:
- It is the most common reason for losing a sale.
- Yet, it is a vital area in selling that can make or break the deal.
- It is where the customer has a lot of power and can say “no” to the buyer at any time.
A company’s purchasing department can reject your proposal, even if the company’s management likes you and your product and gives you the go-ahead to present it.
Purchasing processes differ significantly from one country to another and even from one industry to another. Therefore, it is not easy to understand the B2B purchasing process, but it is essential to know the steps involved to succeed.
Why Are B2B Purchasing Processes Different?
The B2B purchasing process is different from one industry to another and even from one country to another.
For example, in some countries, such as the US and Canada, purchasing is done by a company’s management. In other countries, such as Scandinavia and Germany, purchasing is done by the company’s buying department.
In some industries, such as marketing, purchasing is done by the head of the department that needs the product. In other industries, such as construction and manufacturing, purchasing is done by a purchasing manager who buys goods and services for the entire company.
Why Are B2B Purchasing processes long?
B2B purchasing processes are long and complex. It takes quite a lot of time to complete them – sometimes as much as six months.
The length of the B2B purchasing process depends on the industry and the country, but the average length is about two months.
Why Are B2B Purchasing processes difficult to understand?
The B2B purchasing process is usually not well defined. The company’s management does not always know how it works and who is in charge of different decisions. Many people are involved in different stages and sometimes make decisions without consulting each other.
The company’s management often does not know who to talk to to make important decisions. So they will call the person they know and ask them to do it without realizing that they are not supposed to do this.
For example, some companies’ management will go directly to their marketing department and ask them to decide if the company should purchase a piece of software used for marketing purposes. This is a very important decision and should be made by the head of the company’s marketing department and not by the marketing department’s employees.
Different Types Of B2B Purchasing Processes
There are several types of B2B purchasing processes. These are:
- Informal B2B purchasing process
- Formal B2B purchasing process
- Outsourcing B2B purchasing process
The B2B purchasing process is different in each industry, but in most cases, it follows this structure:
- Problem recognition: The problem is recognized, and the need for a product is identified. The product that can solve the problem is purchased.
- Screening: The company’s management reviews the available products and chooses the most
- suitable ones.
- Pre-purchase evaluation: The company’s management and other stakeholders decide to review the product. They decide whether to buy it or not.
- Purchasing: The company purchases the product, and the product manager is responsible for implementing the product.
- Post-purchase evaluation: The company’s management evaluates whether the product was implemented correctly. They also evaluate the impact of using this product in their business.
Decision-making Process
The decision-making process is different from one industry to another, but in most cases, it follows this structure:
1. Problem Recognition
The first stage of a B2B purchasing process is problem recognition, where a need for a product is identified, and the problem is recognized.
For example, the marketing department of a company that sells office equipment realizes that they need to purchase a new piece of technology.
A company salesperson selling the technology will be invited to present the solution. The salesperson will convince the company’s management team to buy the technology.
2. Screening
The second stage of the B2B purchasing process is screening, where the company’s management chooses the most suitable products to solve the problem.
For example, when choosing a new piece of technology, the marketing department’s management will review their competitors’ products and choose the one they like best.
3. Pre-purchase evaluation
The third stage of a B2B purchasing process is pre-purchase evaluation, where the company’s management and other stakeholders in the decision review the product. Then, they decide whether to buy it or not.
For example, the marketing department’s management will send the product to their engineers for a technical evaluation. The marketing department’s management will also send the product to the company’s finance department for an economic evaluation.
4. Purchasing
The fourth stage of the B2B purchasing process is purchasing, where the company buys the product.
For example, if the marketing department’s management decides to purchase the product, they will ask their operations manager to purchase it.
5. Post-purchase Evaluation
The fifth stage of the B2B purchasing process is post-purchase evaluation. The company’s management evaluates how well the product worked, whether it was implemented correctly, and whether it fulfilled their expectations.
For example, if the marketing department’s management decides to purchase the product, they will ask their operations manager to purchase it.
When the operations manager receives the product, she checks that it was delivered on time and in good condition. She also checks that all the requirements are met and that everything works correctly.
The marketing department’s management evaluates how well the product worked, whether it was implemented correctly, and whether it fulfilled their expectations.
Buying Process
The buying process is different in every industry. It usually follows this structure:
1. Decision Making
The first stage of a buying process is decision making, where the company’s management decides whether to buy a product or not.
For example, when choosing a technology for their marketing department, the head of the marketing department will decide whether to buy it or not.
2. Information Search
The second stage of a buying process is information search, where the company’s management collects information about the available products.
For example, when choosing a new piece of technology, the marketing department’s management will review their competitors’ products and choose the one they like best.
3. Presentation
The third stage of the buying process is presented, where the company’s management is presented with different options for purchasing a product. The products are compared and evaluated.
For example, when choosing a new piece of technology, the marketing department’s management will send the product to their engineers for a technical evaluation. The marketing department’s management will also send the product to the company’s finance department for an economic evaluation.
4. Purchasing
The fourth stage of the buying process is purchasing, where the company buys the product.
For example, if the marketing department’s management decides to purchase the product, they will ask their operations manager to purchase it.
5. Post-purchase evaluation
The fifth stage of a buying process is post-purchase evaluation, where the company’s management evaluates how well the product worked, whether it was implemented correctly, and whether it fulfilled their expectations.
For example, if the marketing department’s management decides to purchase the product, they will ask their operations manager to purchase it.
When the operations manager receives the product, she checks that it was delivered on time and in good condition. She also checks that all the requirements are met and that everything works correctly.
The marketing department’s management evaluates how well the product worked, whether it was implemented correctly, and whether it fulfilled their expectations.
Conclusion
Ultimately, purchasing behavior depends on the individual, and buying habits can take time to develop. However, you can be sure that a few general trends apply across the board for B2B purchasing behavior. The most trusted and required sources will be your company’s employees, some of whom have been around for many years and are likely to have input on how you can beef up services in the future. Be sure to keep this in mind during your decision-making process.