Business markets include those where the products are purchased for further sale to the final consumers. This is done through organizational buying. Organizational buying is the decision making process where formal organizations establish the need for purchasing the products offered by the manufacturing firm. They do this by careful evaluation of alternative brands and suppliers.
Business markets differ from consumer markets in the following ways –
There are fewer buyers, but they buy large quantities.
There is a close relationship between the supplier and the customer.
The process of purchasing is very professional in nature.
There are multiple buying influencers such as buying committees.
There are multiple sales calls.
The demand is derived in nature and is inelastic.
Demand is also fluctuating in nature.
The buyers are geographically concentrated.
There is direct purchase from the manufacturer, and there are no middlemen involved.
Business Markets for Sunfeast Farmlite Biscuits include –
1. Distributors & Retailers – The distributors who stock the product and sell them to the retailer are included here. Retailers are the shop owners, both departmental and mom-n-pop stores who influence the final consumers to purchase the product. Distributors and retailers stock ITC’s products because of the brand name, the popularity among customers and also because if they did not stock, there are chances that ITC reduces the cigarette supply to their stores, adversely affecting their business.
2. Health & Wellness Centers – Health and wellness centers who offer yoga, Ayurveda and meditation workshops may purchase Farmlite cookies. These centers are places where health conscious people visit regularly, and if these places offer the biscuits, the influence on people will be high, resulting in a higher customer base. Hospitals and doctors could also act as influencers.
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