BUSINESS MARKET

BUSINESS MARKETDPM1013PENSYARAH : EN.AFIFIDISEDIAKAN OLEH :- NATASHA AMANI

DefinitionRefer to the buying behavior of the organizations that buy goods and services for use in the production of other products and services.Includes the behavior of retailing and wholesaling firms that acquire goods for the purpose of reselling or renting them to others at a profit.

Business Buyer Decision Process.

STEP 1 : Need RecognitionNeed RecognitionInternallyExternally

STEP 2 : General Need DescriptionThe company describes the general characteristics and quantity of a needed item.STEP 3 : Product Specification ORGANIZATION TEAM develops the items technical product specifications.

The team decides on the best product characteristics and specifies them accordingly.

STEP 4 : Supplier SearchThe buyer now conducts a supplier search to find the best vendors.The buyer can compile a small list of qualified suppliers by reviewing trade directories, doing a computer search, recommendations.STEP 5 : Proposal Solicitation In the proposal solicitation stage of the business buying process, the buyer invites qualified suppliers to submit proposals.

STEP 6 : Supplier Selection.During supplier selection, the buying center often will dra up a list of the desired supplier attributes and their relative importance.In the end, they may select a single supplier or a few suppliers.STEP 7 : Order Routine Specification Order routine specification includes the final order with the chosen supplier or suppliers and lists items such a technical spec, quantity needed, expected time of delivery, return policies, and warranties.

STEP 8 : Performance ReviewIn this stage, the buyer reviews supplier perfomance.The buyer may contact users and ask them to rate their satisfaction.The performance review may lead the buyer to continue, modify, or drop the arrangement.

DIFFERENCES BETWEEN CONSUMER AND BUSINESS MARKETCharacteristicsBusiness MarketConsumer MarketDemandOrganizationalIndividualDistribution structureMore directMore indirectNature of buying unitMore professionalMore personalType of decisions and decision processMore complex and formalizedSimpler and informalUse of reciprocityYesNoUse of leasingGreaterLesser

DIFFERENCES BETWEEN CONSUMER AND BUSINESS MARKETCONSUMER MARKETBUSINESS MARKET Prefer to survey. Really wants to buy. Information seeker will read a lot of copy of quotation/brochure. The purchasing is influenced by family, friends and other circumstances. Nature of business purchasing is influenced by many decision makers (purchasing dept., top level mgmt, finance dept.) Sales are made remotely, the manufacturer doesnt meet the customer. Sales are made personally, the manufacturer gets to know the customer. Every customer has equal value and represent a small % of revenue. There are a small number of big customers that account for a large % of revenue.

DIFFERENCES BETWEEN CONSUMER AND BUSINESS MARKETCONSUMER MARKETBUSINESS MARKET

Product are the same for all customers. The service element is low. Product are customized for different customers. Service is highly valued. Purchases are made for personal use image is important for its own sake. Purchases are made for others to use image is important where it adds value to customers. Dicision process individual. Dicision process made by committee. Buys for his own profit. Buy for his companys profit.