Stage 1 Problem Recognition

The buying process begins when someone in the company recognizes a problem or need that can be met by acquiring a good or service. The recognition can be triggered by internal or external stimuli. Internally, problem recognition commonly occurs when a firm decides to develop a new product and needs new equipment and materi-

Table 3.4 Buygrid Framework: Major Stages (Buyphases) of the Industrial Buying Process in Relation to Major Buying Situations (Buyclasses)

New Task

Buyphases Modified Rebuy

Straight Rebuy

1. Problem recognition

Yes

Maybe

No

2. General need description

Yes

Maybe

No

3. Product specification

Yes

Yes

Yes

Buyphases

4. Supplier search

Yes

Maybe

No

5. Proposal solicitation

Yes

Maybe

No

6. Supplier selection

Yes

Maybe

No

7. Order-routine specification

Yes

Maybe

No

8. Performance review

Yes

Yes

Yes

Source: Adapted from Patrick J. Robinson, Charles W. Faris, and Yoram Wind, Industrial Buying and Creative Marketing (Boston:Allyn & Bacon, 1967), p. 14.

Source: Adapted from Patrick J. Robinson, Charles W. Faris, and Yoram Wind, Industrial Buying and Creative Marketing (Boston:Allyn & Bacon, 1967), p. 14.

als, when a machine breaks down and requires new parts, when purchased material turns out to be unsatisfactory, and when a purchasing manager senses an opportunity to obtain lower prices or better quality. Externally, problem recognition can occur when a buyer gets new ideas at a trade show, sees a supplier's ad, or is contacted by a sales representative offering a better product or a lower price. For their part, business marketers can stimulate problem recognition by direct mail, telemarketing, effective Internet communications, and calling on prospects.

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