Features of organizational buying

Features of organizational buying

What is organizational buying/selling?
Companies need different materials, equipments, services or products to maintain their activity. We talk about business to business or industrial marketing when:
–    a manufacturer sells to another manufacturer, for ex. Equipments
–    a manufacturer sells to a trader
–    or a trader (en-gross) sells to a retailer.
Reporting to consumer goods selling this business is usually more quite, almost invisible for large public. Anyway there is about fat cash.
What are the main features?
–    big volume and fat cash
–    industrial equipments, machines or products for reselling
–    low number of buyers, but with great capacity
–    special services
–    intensive relationship between seller and buyer
–    professional procurement
–    large number of factors to influence decisions
–    the importance of sales forces
–    derived demand – it depends on consumer goods demand
–    unstable demand
–    geographical concentration of the buyers

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