ORGANISATIONAL BUYER HOUSEHOLD BUYER.

Business markets have several characteristics that contrast sharply with the consumer markets.

Fewer Buyers:
The business marketer generally deals with the fewer buyers that the consumer marketer does. For example, an automotive tyre manufacturer, MRF, is interested to get orders form the leading car manufacturers.

Large Buyers:
A few large buyers do most of the purchasing such as defense weapons.

Concentration of buyers:
Organizational buyers are generally concentrated in the same geographical area.

Close Relationship: Because of smaller consumer base and the importance and power of the larger customers, suppliers, are frequently expected to customize their offerings

Derived demand:
The demand for industrial goods is derived from the demand of the consumer goods. Hence the business marketer must understand the buying patterns of final consumers.

In elastic Demand:
Generally the demand for many business goods is inelastic. For example, tyre producers are not going to buy so much rubber if the price of rubber falls.

Acceleration effect:

The demand for business goods tends to be more fluctuating than the demand for consumer goods.

Buying Motives: Organizational consumer’s motive are more rational that psychological. Many of the buying instruments (e.g. calling for quotations and purchase contract) are not found in consumer buying.

Buying Influences:
Purchase committees consulting of senior managers and technical personal are common in purchase of business goods and services.

Multiple Sales calls. :
AS more people are involved in the selling process, It takes multiple sales calls to get purchase orders.

Direct Marketing:

Normally organizational buyers buy directly from manufacturers rather than through intermediaries.