Nature of Business Market

Like final consumers, an organization purchases products to fill needs. However, its primary need—meeting the demands of its own customers—is similar from organization to organization. A manufacturer buys raw materials to create the company’s product, while a wholesaler or retailer buys products to resell. Companies also buy services from other businesses. Institutional purchases such as government agencies and nonprofit organizations buy things to meet the needs of their constituents.

 Business buying decisions, while handled by individuals, occur in the context of formal organizations. Environmental, organizational, and interpersonal factors are among the many influences in B2B markets. Budget, cost, and profit considerations all play parts in business buying decisions. In addition, the organizational buying process typically involves complex interactions among many people. An organization’s goals must also be considered in the organizational buying process.

 The B2B market is diverse. Transactions can range from orders as small as a box of paper clips or copy machine toner for a home-based business to deals as large as thousands of parts for an automobile manufacturer or massive turbine generators for an electric power plant. Businesses are also big purchasers of services, such as telecommunications, computer consulting, and transportation services. Four major categories define the business market: 1) the commercial market, 2) trade industries, 3) government organizations, and 4) institutions.

 My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit, Line of Sight