why there are many participants in the industrial buying than in consumer buying?



All individuals and units that participate in the buying process play various roles. These include the users, influencers, buyers, deciders, gatekeepers.
Users are the actual organizational members using the product.
Influencers define the specifications and provide information for evaluating alternatives.
Buyers who have formal authority to select the suppliers and arrange terms of purchase.
Deciders who have formal and informal power to select or approve the final suppliers.
Gatekeepers who control the flow of information to others.

The following are some of the reasons why there are many participants as elaborated above in the industrial buying compared to consumer buying;

Large sums of money involved in industrial buying calls for many participants. As this is witnessed, then in order to reduce uncertainty about their choice, many are involved. However in the consumer buying, it’s fairly little as they purchase for their own.

Bulk purchases made by the industrial market; In this process, the buyers make bulk purchases to stock for a long time. This calls in for many participants to determine the right amount to buy for stock, the right products and even the right preferences. This is not the case of consumers who purchase in bits making it not necessary for many people.

Complex buying decision; The decision made by industrial buyers is complex compared to consumers who on waking up can make a purchase eventually. This is associated with overcastting about the coming days so as their purchase meets their expectations.

The fluctuating demand; As in the industrial market product demand keeps on changing compared to consumer goods, various participants are required to determine, predict, analyze the state of the demand at present and coming future so that purchases made match the demand.

Derived demand; This is demand for industrial products as a result of demand for consumer products. This calls for many participants to make analysis of the market as they compare to state of the consumer market. However, consumer buying is less derived demand as it is direct

Departmentalization in the industrial market; this involves many departments like the processing, filtering, sales, marketing department which all make it had for the organization to easily recognize the need. This alone requires many participants like the maintenance analyst who tries recognize what is needed at a certain point of time. However, this is not the case with consumer buying where it’s a single individual who has no departments adjusted.

Goals in place in industrial buying; industrial markets aim at profit maximization, cost and risk reduction, and also consumer satisfaction. These require a lot of proper decisions, plans, and specifications after analysis is made. However with consumer buying, the fulfillment of the felt and desired need is the aim. Hence a single person decision made. This explains why the sale managers, marketing managers are all put in place in industrial markets.

Few buyers in industrial market; as this is the case, there is need for proper specifications so as to meet the buyers’ specifications to maintain their status and loyalty in between. This is why tenders are done with all effort so as to win the favour of the buyers to be in position to supply over and over. Hence many participants in the industrial market. However, in the consumer buying, there are many buyers making it easy to capture buyers with few people involved or through simple self-advertising like shop displays or persuasive advertising.

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