BUSINESS MARKET

DPM1013
PENSYARAH : EN.AFIFI
DISEDIAKAN OLEH :NATASHA
AMANI

Definition
Refer to the buying behavior of the

organizations that buy goods and

services for use in the production of
other products and services.
Includes the behavior of retailing and
wholesaling firms that acquire goods
for the purpose of reselling or renting
them to others at a profit.

Business Buyer Decision

Process.

STEP 1 : Need Recognition

Need
Recogniti
on

Internally

Externally

STEP 2 : General Need

Description
The company describes the general

characteristics and quantity of a needed

item.

STEP 3 : Product
ORGANIZATION TEAM develops the items
Specification
technical product specifications.

The team decides on the best product

characteristics and specifies them
accordingly.

STEP 4 : Supplier Search

The buyer now conducts a supplier search

to find the best vendors.

The buyer can compile a small list of
qualified suppliers by reviewing trade
directories, doing a computer search,
recommendations.

STEP 5 : Proposal
Solicitation
In the proposal solicitation stage of the

business buying process, the buyer invites

qualified suppliers to submit proposals.

STEP 6 : Supplier
Selection.
During supplier selection, the buying center

often will dra up a list of the desired

supplier attributes and their relative
importance.
In the end, they may select a single
supplier or a few suppliers.

STEP 7 : Order Routine

Specification
Order routine specification includes the final

order with the chosen supplier or suppliers

and lists items such a technical spec, quantity
needed, expected time of delivery, return

STEP 8 : Performance
Review
In this stage, the buyer reviews supplier

perfomance.
The buyer may contact users and ask them
to rate their satisfaction.
The performance review may lead the
buyer to continue, modify, or drop the
arrangement.

DIFFERENCES BETWEEN
CONSUMER AND BUSINESS MARKET
Characteristi
cs

Business
Market

Consumer
Market

Demand

Organizational

Individual

Distribution
structure

More direct

More indirect

Nature of buying
unit

More professional

More personal

Type of decisions
More complex and
and decision process formalized

Simpler and informal

Use of reciprocity

Yes

No

Use of leasing

Greater

Lesser

DIFFERENCES BETWEEN
CONSUMER AND BUSINESS MARKET
CONSUMER MARKET

BUSINESS MARKET

Prefer to survey.

Really wants to buy.

Information seeker will
read a lot of copy of
quotation/brochure.

The purchasing is
influenced by family, friends
and other circumstances.

Nature of business
purchasing is influenced by
many decision makers
(purchasing dept., top level
mgmt, finance dept.)

Sales are made remotely,

the manufacturer doesnt
meet the customer.

Sales are made personally,

the manufacturer gets to
know the customer.

Every customer has equal

value and represent a small
% of revenue.

There are a small number

of big customers that
account for a large % of

DIFFERENCES BETWEEN
CONSUMER AND BUSINESS MARKET
CONSUMER MARKET

BUSINESS MARKET

Product are the same for

Product are customized for
all customers.
different customers.
The service element is low. Service is highly valued.
Purchases are made for
personal use image is
important for its own sake.

Purchases are made for

others to use image is
important where it adds
value to customers.

Dicision process
individual.

Dicision process made by

committee.

Buys for his own profit.

Buy for his companys

profit.