Business buying involves a decision-making process where organizations identify, evaluate, and select products and suppliers. It involves fewer but larger buyers than consumer markets. Multiple people typically influence business buying decisions and suppliers may need to make multiple sales calls. The demand for business goods is derived from consumer demand. Business demand can be more volatile than consumer demand.

1. Copyright© 2008. IAME – Anand Choudhary

4. Copyright© 2008. IAME – Anand Choudhary Several buying influences : More people typically influence business buying decisions. Multiple sales calls : Involvement of more players leads to multiple sales calls to win most business orders. Derived demand : The demand for business goods is derived from the demand of consumer goods.For this reason the business marketer must closely monitor the buying patterns. Inelastic demand : the demand is not much affected by price changes in many business goods and services. Fluctuating demand : the demand of business goods tends to be more volatile when compared to consumer goods.

5. Copyright© 2008. IAME – Anand Choudhary Geographically concentrated buyers : The geographic concentration of products helps to reduce selling costs.Business marketers also should monitor regional shifts of certain industries. Direct purchasing : Business buyers often buy directly from manufacturers rather than through intermediaries.Especially that are technically complex or expensive(such as mainframes or aircraft)