• Fewer, larger buyers: The number of the buyers is less but the volume of individual buyer’s purchase is very high. So the ultimate sales volume of seller is very high.
Example: B2B Marketing – Dunlop Tires to Automobile manufacturers, Aircraft Engines to BOEING, or other etc.
• Close supplier-customer relationships: Because of smaller customer base, continuous communication and the importance of the customers; suppliers maintain very close relationship with them. And business buyers often select suppliers who also buy product from them.
Example: Paper manufacturer buys chemicals from a chemical company that buys a considerable amount of its paper (win win situation).
• Professional purchasing: Business goods are often purchased some trained purchasing agents and they must follow purchasing policies and procedures of their principal company.
Example: Like Buying Houses for the Garments Sector. They follow the sequence;
- Request for quotation
- Receive proposals
- Evaluate offerings
- Issue purchase orders
- Receive products
• Several buying influences: Buying committees consists of different functional managers, technical experts and even senior management in purchase of major goods. So they try to influence the purchase.
Example: People from different departments try to influence the buying process to serve their interest. And some special interest groups outside the company can also interfere in business buying.
• Multiple sales calls: Several sales calls (offer, communication & influence) and time is needed to satisfy all the possible queries of the business customers from bottom to top level of buyer.
• Derived demand: The demand for business goods is ultimately resulted from the demand of consumer goods. So economic condition, consumer spending, interest rate are important.
Example: TOYOTA buys steel because consumers buy cars.
If consumer demand for cars drops, so will the demand for steel and all other products used to make cars.
• Inelastic demand: Sometimes demand of some business goods & services are not highly affected by price changes. Consumer will show similar type of demand all most all the time.
Example: Demand for Raw materials of salt and medicine manufacturers. No matter how the final price (Increase/decrease) of products is; Consumer will use these products according to their regular need. So the manufacturers need a consistent level supply all the time.
• Fluctuating demand: Though business buyers demand products according to consumer’s need; but sometimes the demand for business goods and services tends to become unstable than the demand of consumer goods & services.
Example: A given percentage increase in consumer demand can lead to a much larger percentage increase in the demand for plant and equipment necessary to produce the additional output.
• Geographically concentrated buyers: Sometimes business buyers are located in some selective areas. So it is effective to target those selected areas to sell business products.
Example: Motijheel is prominent for corporate offices; again Dhanmondi & Banani areas are for private universities. So it is profitable for marketers to send their sales representatives to the respective areas.
• Direct purchasing: Usually business customers purchase products directly from manufacturers without using the intermediaries.
Example: Developer Company (Asset, Domino) purchase building materials like steel, cement and others directly from the manufacturer (Basundhara, Abul Khair Co).
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