DIFFERENCE BETWEEN CONSUMER BUYING & INDUSTRIAL BUYING- MARKETING MANAGEMENT

DIFFERENCE BETWEEN CONSUMER BUYING & INDUSTRIAL BUYING.

BY

SMART LEARNING WAY

CONTENTS 

Introduction to Buyer Behaviour

      Introduction to Consumer Buying 
           Introduction to Industrial Buying

Consumer Buying Process

 Industrial Buying Process

Difference between Consumer Buying & Industrial buying

Conclusion

      Bibliography

INTRODUCTION TO BUYER BEHAVIOR

                    Robinson, Faris & Wind states that when understanding the Industrial Buying Behavior a permanent process of problem solving and decision – making must be taken into consideration. All members in a business who become involved in such a buying process are centered to specify group – These processes and group members may vary when purchasing different kinds of products and services.

               

   An important part of the marketing process is to understand why a Customer or Buyer makes a purchase. Without such an understanding, business finds it hard to respond to the customer’s needs and wants. Marketing theory traditionally splits analysis of buyer or customer behavior into TWO broad group of analysis – Consumer Buying and Industrial Buying.

INTRODUCTION TO INDUSTRIAL BUYING

                      Industrial purchasing stands for more than half of the whole economic activity in Industrialized countries. Hardly any consumer has the buying authority as organization and any given end product is made up by many industrial purchase that is important to understand how industries perform buying activities.

                     Industrial buying behavior is in essence the arrangement of how Industrial Organizations purchase goods and services. This area is essential for the understanding of the consumer needs and must be taken into consideration for successful suppliers.

INTRODUCTION TO CONSUMER BUYING

The study of how and why people purchase goods and services is termed as Consumer Buying.

          The term covers the decision making processes from those that precede the purchase of goods and services to the final experience of using the product or services.

             Models of Consumer Buying Behavior draw together the various influences on the process of the buying decision. They attempt to understand the proverbial “Black box” (Buyer’s mind) of what happens within the consumer between his/her exposure to marketing stimuli and the actual decision to purchase.

CONSUMER BUYING PROCESS

  1) Recognition of need

  2)  Information Search

  3)  Evaluation of Alternatives

  4)  Purchase decision

  5)  Post Purchase Behavior

INDUSTRIAL  BUYING PROCESS

1)      Problem Recognition

2)      General need description

3)      Product specification

4)      Supplier search

5)      Proposal solicitation

6)      Supplier selection

7)      Order routine specification

8)      Performance review

DIFFERENCE BETWEEN CONSUMER BUYING & INDUSTRIAL  BUYING

Consumer Buying

• The buying behavior of individual and household who buy goods & services for personal consumption is known as Consumer buying.

Industrial Buying

• This buying is the decision – making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands & suppliers.

                        -Webster & Wind

• In Consumer Buying, buying is done as required.
• In Consumer Buying, product specification takes place.
• In this there can be at a time buying of products.
• In Industrial Buying, buying is to be done in bulk or in large potential.
• In this, product specification dose not take place because of the large potential revenue of such products.
• In this at a time buying can never be done.
• In this no demand or order is to be kept before in advance far the purchase of goods.
• In this buyers have to make only few simple decisions about the products while making a purchase.
• In this before buying demand for the products is to be kept forward as an order then only this buying for the products is possible.
• In this buyers faces many critical decisions in making purchase.
• In this buyers prefer to buy a total solution to their problem from more than one seller.
• Consumer buying are those who purchase items for their personal consumption.
• In this less Dollars & Items are involved in sales.
• In this buyers prefer to buy a total solution to their problem from one seller. (system buying)
• Industrial Buying are those who purchase items on behalf of their business or organization.
• In this more Dollars & Items are involved in sales.
• Consumer Buying is done in order to satisfy the needs of the consumers.
• In Consumer buying, purchase volume is small.
• Industrial Buying can not satisfy the consumer’s need but can satisfy the needs of industrialists. It does the production of those products which can satisfy the needs of consumers.
• In Industrial Buying, purchase volume is large.
• In Consumer Buying, the number of customers are many.
• In Consumer Buying, the location of buyer is Dispersed.
• In Consumer Buying, the nature of consumer Buying is more personal.
• In this the nature of buying influence is single.
• In Industrial buying, the number of customers are fewer.
• In Industrial buying, location of buyer is Geographically concentrated.
• In Industrial Buying, the nature of industrial buying is more professional.
• In this the nature of buying influence is multiple.
• In Consumer Buying, there are many buyers in the market.
• In consumer Buying , importance of one person as a buyer is there.
• Consumer Products are considered as daily used Products.
• In Industrial Buying, there are fewer potential buyers in the market.
• In Industrial Buying, there is little importance for one person buying.
• Industrial Products are not considered as daily used Products.
• Sales promotion is there. 
• Consumer buying is very quick process. It doesn't requires any type of data or presentations.
• In this repeat sale is allowed.
• Sales promotion is not there.
• Industrial buying requires more and proper scientific data as well as presentations.
• In this repeat sale is not allowed.
• In Consumer Buying individual and family involvement takes place.
• Consumer buying includes many purchasing procedures.
• In Consumer Buying the products are standard and with detailed specification.
• In Industrial Buying group decisions and many buying influences takes place.
• Industrial Buying includes impulse, planned or experiential  procedures.
• In Industrial Buying the products are with technical complexity. They are standard or customized.
• Consumer products are :- eatable products, usable products etc.
• Industrial products are :- raw materials, fabrication parts and materials, installation, accessories, equipments etc.

CONCLUSION

             From over all , we conclude that without industrial buying production can not be done. If the production is not done than consumer will not be able to get their wanted and needed things. If they will not get the things, they will not do the buying, i.e. consumer buying will not be done.

              Thus we can say that without Industrial  buying, Consumer Buying can not be done. As Industrialists always try to fulfill the needs of consumers.

BIBLIOGRAPHY

1.) Principles of Marketing

                        - Philip Kotler and  Gary Armstrong

2.) Marketing Management

                        - Philip Kotler and Kevin Lane Keller

3.) Essential Of Marketing Management

                        - Sherlekar S.A.

                        - P.N. Reddy  and

                        - HR Appannaiah

4.) Selling and sales Management

                        - Geoffrey Lancaster and

                        - Dewid Jobber

5.) Principle and practice of Marketing in India

                        - Dr. C.B. Mamoria

                        - R.L. Joshi

                        - Dr. N.I. Mulla

                       

6.) Salesmanship & Publicity

                        - Rushtan S. Davar

                        - Sohrab R. Davar

                        - Nusli R. Davar

7.) Marketing Management

                        - Cranfield school of Management