BUSINESS MARKETS AND BUSINESS

BUYER BEHAVIOR

Reported By: Renzo Torre

MARKET
“ A market is an area or a place where buyers and sellers negotiate for the
exchange of a well defined commodity”
BUSINESS MARKET
-A Marketplace where organizations purchase raw material, natural resources and
component of other product for resale

OR
-It is a market in which buyer purchase product and services for resale purposes
 Difference Between Consumer Market And
Business Market

Consumer
Market: Business
It is a market in Market:
which buyer It is a market in
purchase which buyer
product and purchase
service for product and
Personal services for
Consumption resale Purpose
CHARACTERISTIC OF BUSINESS MARKET:
There Are 3 main characteristic of Business Market which are:
* Market structure and demand.
* Nature of the buying unit.
* Types of decision and the decision process
MARKET STRUCTURE AND DEMAND:
- Business markets contains fewer but larger buyers.
- Business buyer demand is derived from final consumer demand.
- Demand in many business markets is more inelastic.
- Demand in Business markets fluctuates more and more quickly.
NATURE OF THE BUYING UNIT:
- Business purchases involves more buyers.
- Business buying involves more professional purchasing effort
TYPES OF DECISION AND THE DECISION
PROCESS:
- Business buyers usually face more complex buying decisions.
- The business buying process is more formalized.
- In business buying, buyers and seller work more closely together and build close
long term relationships.
BUSINESS BUYER BEHAVIOR
* Definition of Business buyer Behavior
* General Model of Business buyer behavior
*Major types of Buying Situations
DEFINITION OF BUSINESS BUYER
BEHAVIOR
Business buyer behavior refers to the buying
Behavior of the organizations that buy goods and services for use in production of
other products and services that are sold, rented, or supplied to others. Also included
are retailing and wholesaling firms that acquire goods to resell or rent to other for
profit.
GENERAL MODEL OF BUSINESS BUYER
BEHAVIOR
- The Marketing stimuli
- The Other Stimuli
- The Buying organization
THE MARKETING STIMULI
> Price
> Place
> Product
> Promotion
THE OTHER STIMULI
Additional stimuli include major economic forces
- Political
- Economic
- Technological
- Cultural
- Competitive
THE BUYING ORGANIZATION
Within a buying activity consist of two major parts;
- The Buying Decision process
- The Buying center
MAJOR TYPES OF BUYING SITUATIONS
Straight rebuy – is a routine purchase decision such as reorder without any
modification

Modified rebuy – is a purchase decision that requires some research

where the buyer wants to modify the product specification, price, terms, or suppliers

New task – is a purchase decision that requires thorough research such as a

new product