To provide a conceptual framework for this discussion, we employ the classic BuyGrid model (Fig. 1). Although we have proposed a new BuyGrid framework. Video created by IE Business School for the course “Marketing Strategy Capstone Project”. Learn online and earn valuable credentials from top universities like. The purpose of this study was to perform a statistical evaluation of the BUYGRID Analytic Framework (BAF) to determine whether it is a general model of.
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The buy-grid model framewogk a business model depicting rational organizational decision making. What are the information sources? Organizational buying contexts and the procurement process: A sales person must be aware that a buyer not only has functional needs, but psychological, social, knowledge and situational needs as well.
The buyer retains feamework supplier as long as the level buytrid satisfaction with the delivery, quality and price is maintained. The challenge for the new supplier is to offer better conditions or draw the buyer’s attention to greater benefits than in the current offering. The buying process can vary from highly formalised to an approximation depending on the nature of the buying organisation, the size of the deal and the buying situation.
Buy phase represents the logical eight steps businesses or consumers involved in extensive problem solving go through.
The model can provide the basis for a formal selection process e. The major implication of Robinson, Faris and Wind’s research is that industrial buying behaviour depends more on the buying situation than on the type of product. The relationship needs to be developed during phases 3 to 7. For business marketers it is critical for their products or services to framewofk listed as approved vendors for straight rebuys.
As buyphases are completed, the process of ‘ creeping commitment ‘ occurs and reduces the likelihood of new suppliers gaining access to the buying situation. Inthe Canadian, American and Israeli marketing researchers, Robinson, Faris and Wind, introduced the buygrid framework as a generic conceptual model for buying processes of organisations.
During the performance feedback and evaluation phase, the relationship between the seller and buyer can develop into a longer term engagement. The model includes two components: For each cell in the matrix buy situation and buy phasethe following questions must be answered: The buygrid framework proved its worth to the scientific community as one of the few industrial marketing models.
Marketers who can become involved early in the decision-making process have a greater chance of being considered in the final selection process.
Buyer loyalty and customer satisfaction are primarily determined by the sales activities during this last phase. Which organisation members influence this purchase decision?
The number of steps varies with the buy-class, the type of buying decision. Business-to-business framewotk recognize that at each step in the buying process, business buyers have different needs, and different groups within the organization may be involved. There are three buy-class categories: For marketers desiring to be considered during modified rebuy situations, comparison advertising and demonstrations are used to influence business buyers.
A shortcoming of the organizational buying approach is the negligence the supplier’s side and the influence this party wields on the customer’s organisational decision process.
The first-time buyer seeks a wide variety of information to explore alternative purchasing solutions to his organisational problem. It applies to all purchase situations.
Assessing the buyer’s needs and determining gaps between the current and desired situation is important.
They saw industrial buying not as single events, but as organisational decision-making processes where multiple individuals decide on a purchase. These components should be addressed in meetings in order to obtain commitment. The most complex buying situations occur in the upper buygrdi quadrant of the buygrid matrix where the largest number of decision makers and buying influences are involved.
Their framework consists of a matrix of buyclasses and buyphases. Is this combination of situation and phase relevant? The model neglects the importance of acquisition in sales processes. The organisational buying model focuses mainly on products and not on services. Most business-buying situations do not involve all of the steps in the buy-grip model.
The buyer wants to replace a product the organisation uses. New suppliers are considered only when these conditions change. The greater the cost or perceived risks related to the purchase, the greater the need for information and the larger the number of participants in the buying centre.
Modified Rebuy The buyer wants to replace a product the organisation uses. Suppliers need to fill out this matrix for their firm’s specific situation. What fra,ework the used performance indicators? Need gaps create the motive behind any purchase.
BuyGrid Framework (MBA) –
It helps sales personnel deliver the correct message at the right time. The relationship between the buyer and seller is initiated in phases 1 and 2.
Buyers need assistance in forming realistic perceptions of both the current and the desired situation. In straight rebuy situations, only the need recognition the company almost out of the product and reordering steps are used. The model explains the likely interaction between buyer and seller activities given the purchase needs of an organisation.
Straight Rebuy The buyer routinely reorders a product with no modifications. The buying side of the model can be used for both consumer and business related buying processes. Business marketers use the buy-grid model to portray the steps businesses go through in making purchase decisions. The decision making may involve plans to modify the product specifications, prices, terms or suppliers as when managers of the company believe that such a change will enhance quality or reduce cost.
A new task that occurs in the problem recognition phase 1 is generally the most difficult for management.