The buy-grid model is a business model depicting rational organizational decision making. Business marketers use the buy-grid model to portray the steps businesses go through in making purchase decisions. The model includes two components: buy phase and buy class.
Buy phase represents the logical eight steps businesses (or consumers involved in extensive problem solving) go through
• need recognition
• definition of PRODUCT type needed
• development of detailed specifications
• search for qualified suppliers
• acquisition and analysis of proposals
• evaluation of proposals and selection of a supplier
• selection of an order procedure
• evaluation of product performance
Business-to-business marketers recognize that at each step in the buying process, business buyers have different needs, and different groups within the organization may be involved. Business marketers anticipate which step organizational buyers are in and attempt to provide the needed information and support for that stage of decision making. Marketers who can become involved early in the decisionmaking process have a greater chance of being considered in the final selection process. Many organizations, including government agencies, have formal purchasing procedures incorporating the buy-grid model. Set-aside programs targeting small and minority-owned businesses and bid solicitation requirements for government offices follow a similar defined procedure for PURCHASING. Most business-buying situations do not involve all of the steps in the buy-grip model. The number of steps varies with the buy-class, the type of buying decision. There are three buy-class categories: new buys, straight rebuys, and modified rebuys. While the complete buying process is typically used for new buys (purchases of products or services never used before), a majority of business purchasing decisions are either straight rebuys or modified rebuys. In straight rebuy situations, only the need recognition (the company almost out of the product) and reordering steps are used. For business marketers it is critical for their products or services to be listed as approved vendors for straight rebuys. Marketers will use reminder ADVERTISING, relationship-building entertainment and hospitality, and PERSONAL SELLING to maintain their status as the preferred provider. In modified rebuy decisions (where a buyer is willing to “shop around”), the buyer may go through some or all of the purchasing steps. For marketers desiring to be considered during modified rebuy situations, comparison advertising and demonstrations are used to influence business buyers. Incumbent firms will use relationships, special offers, and anticipation of or quick response to customer needs to maintain their status when business buyers are considering alternatives.