MKTG101 Lecture Notes - Lecture 5: Centrelink, Retail
Chapter 5 (Business Buying Behaviour)
The underlying premise in much of the discussion of business buying behaviour (B2B)
is that it is fundamentally different from consumer buying behaviour (B2C).
Business markets
• Idiiduals or orgaisatios that purhase produts for resale, use i the
production of other products, or for use in their daily business operations.
• Small number of large competitors
• Purchase large amounts
Business markets comprise four major categories:
• Reseller markets
• Producer markets
• Government markets
• Institutional markets.
Reseller markets
The market of retailers, wholesalers and other intermediaries that buy products in
order to sell or lease them to another party for profit.
• ‘eseller intermediaries include:
• Wholesalers: Sell to other iterediaries
• E.g. retailers – sometimes directly to organisational buyers and consumers
Industrial distributors: Sell to organisational buyers - producers, governments and
institutions
Retailers: Sell to consumers Profit of intermediaries derived from price paid by
consumers
Producer markets
• The markets in which businesses and professionals purchase products for use
in the production of other products or in their daily business operations.
Examples of transactions in producer markets include:
• Buying raw materials (wood for flooring, furniture) or
• component parts (spark plugs)
• Buying office supplies (for use in daily operations)
• Buying finished and semi-finished items to produce other products (wire for
coat hangers)
• Buying professional services- Town planners, architects
Government markets
• Selling products to national (Commonwealth), state (provincial) and local
(municipal) governments for use in providing services for citizens.
• Government markets are subject to extensive rules and regulations designed
to ensure that business is conducted ethically and legally.
• Purpose of goeret is to serie the ill of the people:
• Natioal seurit defee fore; soial seurit Cetrelik; eekl
rubbish collection
• Goeret fiaial authorities
• Esure appropriate use of tapaers oe
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