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Process Of Decision Making Organizational Buying Behavior

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Question:

Discuss about the Process of Decision Making Organizational Buying Behavior.
 
 

Answer:

Introduction

Organizational buying behavior refers to the process of decision-making in which the organizations establish the need for purchased products and services. The organizations further identify, evaluate and select among alternative brands from the available suppliers (Webster & Wind, 2014). The concept is similar to the customer buying behavior with some contextual differences. A few factors that influence business buyers are the macro-environmental factors, interpersonal factors, organizational factors and individual factors (Swani, Brown, & Milne, 2014). The aim of this paper is to conduct a secondary research of organizations. The major trends followed by the companies affecting business-to-business (B2B) purchases have been assessed in this study.

Organizational Buying Process

Figure 1: Organizational Buying Process

Source: (Webster & Wind, 2014)

Trends in Buying Behaviors of Organizations

A few trends have been in progress for the B2B buyers. The businesses are increasingly adapting to new channels and technologies to solve critical issues. The users shall have a stronger voice in purchase decision (Swani, Brown, & Milne, 2014). The businesses may create a crowd source means of narrowing the potential vendors and solutions. As the purchasing power increases, the buyers are seeking quality sales. After the businesses collect information, they also watch for sales interactions to be brought in earlier into buying processes (Aarikka-Stenroos & Jaakkola, 2012).

The businesses are also pushing back on content and information overload. The businesses consider the overload as drawbacks to buying behavior. They are concerned about productivity drain in the process. There is a need for more delegation while searching information for products, solutions and services (Lilien, 2016). The businesses are watching for companies who are looking to streamline purchasing with minimal waste. They are identifying best practices at the right value, with the appropriate materials required to operate businesses (Gomes, Fernandes, & Brandão, 2016).

The business models are increasingly adopting technologies such as cloud-based applications. These help in changing the mindset of buyers. The businesses are also seeking lower cost entry into solutions and shifting their focus from large single investment to lower cost. The businesses prefer rental or subscription models (Sashi, 2012). There has been a significant rise in the millennial buyers in B2B process. Their first priority is to have ease in doing business. Their next priority is to have the willingness to work collaboratively with the organizations. Moreover, they look for industry and marketplace expertise (Moncrief, Marshall, & Rudd, 2015).

 

Impact on Business-to-Business Purchases

One of the critical issues faced by the above organizations while working in a B2B environment is that it must be difficult for the vendors to establish members of different industries. Handshake is a famous organization that has a B2B model that develops software for companies. A few of its customers are Roland, Vega, Starkey and Silhouette. Handshake eliminates costs with manual ordering methods and legacy solutions. They also provide mobile apps and ecommerce websites (Handshake.com, 2016). It is analyzed that the consumers are seldom aware of the business-to-business brands and companies (Webster & Wind, 2014).   

Cisco, an American multinational corporation technology that designs and sells networking equipment globally, has a B2B platform. Cisco enables its customer experience by enabling B2B electronic interactions with the largest channel partners, parts suppliers and logistics provider. They offer solutions that automate business processes such as ordering, configuring and invoicing between Cisco and the partners. The reason behind Cisco’s B2B solutions is the ease of doing business. The costs can be lowered while improving productivity and lowering cycle times (Cisco.com, 2016). It can be interpreted that these markets involve few greater clients than that of consumer market (Webster & Wind, 2014).

It is observed that Tetra Pak invests beyond consumer insights. It offers the best packaging solutions to the food and beverage companies. It also helps in sustaining the most perishable and tasty food without refrigeration for months. Therefore, it is assessed that Tetra Pak offers solutions to the businesses that help them in satisfying customers (Tetrapak.com, 2016). The relationship between B2B is geographically restricted and there is oligopolistic competition. Moreover, the marketing is usually short and more direct. The relationship between buyer and seller is established on a long-term basis (Webster & Wind, 2014).

Recommendations

All the above organizations focus on long-term buyer seller relationship as one of the most influential factors for the purchasing behavior. The organizations can avoid uncertainty and create long-term contracts. The organizations can make both financial and emotional investment with the buyers so that the marketing strategies can be effectively implemented. Several steps can be followed for ensuring marketing success in B2B buying behavior process. Firstly, the businesses must understand its target audience. The businesses need to think beyond specific buyers as the information can be forwarded via social media. The marketing content must be created in a manner that the audience wants. The content must be transformed in a way that is easy to understand. Every organization needs to shift to technological trends. As the millennial focus on getting the business processes easier, innovations can be made for providing ease to the buyers. The impact of social media is greatly affecting the B2B sector. The social media tactics can be used to engage with the buyers. Marketing campaigns can be designed and promoted on the social media as it is the most popular trend for promotion. The research can be conducted by the customers using direct phone calls and the internet. A user-friendly approach must be adopted based on the feedback provided. The customer behavior can also be analyzed.

Conclusion

Conclusively, the organization buying behavior is influenced by the marketing strategies followed by businesses. According to the trends, it is observed that the organizations need to focus on internet and content marketing strategy. A few factors that influence business buyers are the macro-environmental factors, interpersonal factors, organizational factors and individual factors. The businesses are seeking companies who are looking to streamline purchasing with minimal waste. The millennial expect to carry on their businesses with ease due to which they prefer business-to-business model. The businesses need to think beyond specific buyers as the information can be forwarded via social media.

 

References

Aarikka-Stenroos, L. & Jaakkola, E. (2012). Value co-creation in knowledge intensive business services: A dyadic perspective on the joint problem solving process. Industrial Marketing Management, 41(1), 15-26. https://dx.doi.org/10.1016/j.indmarman.2011.11.008

Cisco.com,. (2016). Enterprise B2B. Cisco. Retrieved 18 August 2016, from https://www.cisco.com/web/ordering/b2b/index.html

Gomes, M., Fernandes, T., & Brandão, A. (2016). Determinants of brand relevance in a B2B service purchasing context. Jnl Of Bus & Indus Marketing, 31(2), 193-204. https://dx.doi.org/10.1108/jbim-08-2014-0151

Handshake.com,. (2016). Handshake | B2B Commerce Platform. Handshake.com. Retrieved 18 August 2016, from https://www.handshake.com/

Lilien, G. (2016). The B2B Knowledge Gap. International Journal Of Research In Marketing. https://dx.doi.org/10.1016/j.ijresmar.2016.01.003

Moncrief, W., Marshall, G., & Rudd, J. (2015). Social media and related technology: Drivers of change in managing the contemporary sales force. Business Horizons, 58(1), 45-55. https://dx.doi.org/10.1016/j.bushor.2014.09.009

Sashi, C. (2012). Customer engagement, buyer‐seller relationships, and social media. Management Decision, 50(2), 253-272. https://dx.doi.org/10.1108/00251741211203551

Swani, K., Brown, B., & Milne, G. (2014). Should tweets differ for B2B and B2C? An analysis of Fortune 500 companies' Twitter communications. Industrial Marketing Management, 43(5), 873-881. https://dx.doi.org/10.1016/j.indmarman.2014.04.012

Tetrapak.com,. (2016). Tetra Pak processing and packaging solutions for food and beverages.Tetrapak.com. Retrieved 18 August 2016, from https://www.tetrapak.com/

Webster, F. & Wind, Y. (2014). Organizational buying behavior. Englewood Cliffs, N.J.: Prentice-Hall.

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