Posts Tagged ‘reselling’
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