Product specification is the stage of the business buying process in which the buying organization decides on and specifies the best technical product characteristics for a needed item.
The buying organization develops the item’s technical product specifications often with the help of a value analysis engineering team. Product value analysis is an approach to cost reduction in which components are studied carefully to determine if they can be redesigned, standardized, or made by less costly methods of production. The team decides on the best product characteristics and specifies them accordingly. Sellers, too, can use value analysis as a tool to help secure a new account. By showing buyers a better way to make an object outside sellers can turn straight rebuy situations into new task situations that give them a chance to obtain new business.
More from this Section
- Primary and Secondary data
Secondary data consist of information that already exists somewhere, having been collected for another purpose.
- Market segment
A market segment consists of consumers who respond in a similar way to a given set of marketing efforts.
- Product invention
Product invention refers to create new products or services for foreign market. It consists of creating something new to meet the needs of consumers in a given country.
- Product idea
A product idea is an idea for a possible product that the company can see itself offering to the market.
Micromarketing is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations. Rather than seeing a customer...
E-procurement refers to purchasing through electronic connections between buyers and sellers- usually online.
- Variety-seeking buying behavior
Undertaken by consumers in situations characterized by low consumer involvement but significant perceived brand differences.