1. Nature of Business/ Industrial
buying

2. 9/1/2013 2
External
Stimulus
Proposal
evaluation
Existing/Pre
vious
supplier
Proposal
acquisition
Order routine
established
Supplier
Selection
Feedback on
performance
New supplier
Internal
Stimulus
Supplier Buyer
information
exchange
Suppliers
screening
Problem
solution/alternatives
Problem
Recognition
New product
required
Make
Or
Buy
Type of
product ?
Search for
qualified
supplier
Solution choice
:purchase product
Contact with
potential supplier
Suppliers
plant visits

3. Phases in the Purchase Decision Process
Phase -1
Anticipation or Recognition of a problem(Need)
Phase-2
Determination of the characteristics and Quantity of
Needed items
Phase-3
Description of the Characteristics and Quantity of the
Needed items
Phase-4
Search for and Qualification of Potential Sources
Phase-5
Acquisition and Analysis of Proposal

4. Phase-6
Evaluation of Proposals and Selection of Suppliers
Phase-7
Selection of an order routine
Phase-8
Performance Feedback and Evaluation

7. Overview of buy grid
• Creeping commitment
• Center of gravity

8. Buying centers and influencers
• Identifying buying centers
– Marketing
– Manufacturing
– R & D
– General management
– Purchase

9. Buying center roles
• Deciders
• Influencers
• Users
• Buyers
• Gatekeepers

10. Objectives in organizational buying
• Task oriented objectives
• Price
• Services
• Quality
• Assurance of supply
• Reciprocity
• Non task objectives