BUSINESS MARKET
definition
buy goods or services for further processing or for use in their production process, and reseller markets buy goods or services to resell at a profit
characteristics
- Nature of buying unit - business purchase involve more buyers - business buying involves a more professional purchasing effort
- Types of decision and the decision process - business buyers usually face more complex buying decisions - business buying process is more formalized - buyers and sellers work closely together and build long term relationship
- Market structure and demand - business market contain fewer but larger buyers - business customers more geographically concentrated - business buyer demand is derived from final consumer demand
major types or buying situations
- modified rebuy - the buyer wants to modify product specifications, price, terms or suppliers
- new task - a company buying a product or services for the first time faces a new task situation
- straight rebuy - the buyer reorder something without any modifications
the participants
- buyers - have formal authority to select the supplier and arrange terms of purchase
- decider - has formal or informal power to select or approve the final suppliers
- influencer - helps define specifications and also provide information for evaluating alternatives
- users - the members of the organization who will use the product or services
- gatekeepers - control the flow of information to others
the buying process
supplier search
proposal solicitation
product specification
order- routine specification
general need description
performance review
problem recognition