Like many well-known business organizations, they sell their product to other business organizations. Even consumer products companies also sell most of their product to other businesses. This way refers to the business buyer behavior of any organization. This organization buys goods & services for further process, sold, rented, or supplied to others. This also includes retailing & wholesaling business behavior.
In the business buying process, buyers decide which types of product they need when they try to find out that product, evaluate it, and choose the best alternatives. B-2-B marketers must understand the business markets & business buyers’ behavior very efficiently. Then they sell the final output to the final customer. They always try to build profitable customer relations with their customers by delivering superior customer value.
The business market is higher than the consumer market because the business market involves million dollars & items than in consumer markets. For example: Think about Unilever. It has all types of consumer goods item & every year Unilever earn millions of dollars. But think about Goodyear. A large number of business transaction occurs only for Goodyear tires, steel, and rubber. Goodyear has a high demand in the business markets. Thus many business buyers buy only for the resale of the products.
In another way, business markets are the same as consumer markets. Because both are involved in buying & selling decisions to satisfy the needs. The main differences between business markets & consumers markets are-
- Market structure & demand
- Nature of the buying unit
- Types of decisions & the decision process
Market structure & demand
Business marketers generally work more than consumer marketers. The business marketer deals with a large number of buyers but they stay far fewer. Besides, the demand for the business market is different from the consumer markets. The business market always faces a derived demand. Derived demand means that demand usually comes from the demand for consumer goods.
Another business market may face inelastic demand & more fluctuating demand. These types of demand effect price change only in the short run. A reduction in price may not increase the purchase of that product unless the demand for this product exists in the markets.
Nature of the buying unit
Here, every time compared with the consumer market, the business market involves in two ways –
- More decision participants
- More professional purchasing effort
There are some trained agents who purchase a product that can perform better. If there are too many agents, the buying decision may be more complex. That’s why the buying committees select expert people for their work.
Types of decisions & the decision process
Unlike consumer buyers, business buyers face more complexity in buying decisions. A business buyer usually buys a large number of inventories, invest large sums of money, adopt technical & economic considerations, and interact with many people in the different channel of the organization. This process is so longer & more formalities need to do. Even, a large business organization maintains a formal written approval with other partners.
Finally, buyer & seller depends on each other in the business markets.