buyer's market

Examples of buyer's market in the following topics:

• B2B vs. Consumer Marketing: Similarities and Differences

  • Whereas emotional factors play a large role in B2C purchases, B2B purchasing decisions tend to be less emotional and more task-oriented than consumer buyer markets.
  • While consumer marketing is aimed at large groups through mass media and retailers, the negotiation process between the buyer and seller is more personal in business marketing.
  • In contrast, B2B marketing can include numerous meetings between the seller and buyer before a transaction occurs.
  • As a result, confidence and trust are gradually built between the seller and buyer over a period of time.
  • Different aspects of the promotional mix can be easily personalized due to the relationship between a B2B salesperson and the individual buyer.

• What Are Markets

  • Markets are a group of potential buyers with needs and wants and the purchasing power to satisfy them.
  • A basic definition of a market is a group of potential buyers with needs and wants and the purchasing power to satisfy them.
  • International markets, American markets, a shopping center, and even the site of a single retail store can be called a market.
  • The terms buyer's market and seller's market describe different conditions of bargaining strength.
  • The primary types of markets are consumer markets, industrial markets, institutional markets, and reseller markets.

• Lifestyle

  • In consumer marketing, lifestyle is considered a psychological variable known to influence the buyer decision process for consumers.
  • However, in consumer marketing, lifestyle is considered a psychological variable known to influence the buyer decision process of consumers.
  • In this theory, the marketing stimuli (product, price, place and promotion) are planned and processed by companies, whereas the environmental stimuli are based on the economical, political, and cultural circumstances of a society.
  • The buyer's "black box" contains the buyer characteristics (e.g., attitudes, motivation, perception, lifestyle, personality, and knowledge) and the decision process (e.g., problem recognition, information research, alternative evaluation, purchase decision, and post-purchase behavior) which determine the buyer's response (e.g., product choice, brand choice, dealer choice, purchase timing, and purchase amount).
  • The Black Box Model considers the buyer's response as a result of a conscious, rational decision process, in which it is assumed that the buyer has recognized the problem.

• Purchase Behavior

  • Business-to-business or B2B marketing targets markets where the end users or customers are the purchasers of goods and services.
  • However, like consumer markets, business marketers monitor and analyze customer purchase behavior to develop segmentation strategies and customer intelligence.
  • Commitment times are also longer, as B2B buyer-seller relationships can extend over the lifetime of the product or service delivery period.
  • Companies and organizations face challenges in business market segmentation since B2B markets face greater complexity in buying processes, buying criteria and actual products and services.
  • Additionally, measuring strategic data relevant to the buyer's target audience and overall marketing strategy is challenging due to the long and complicated progress of doing B2B transactions.

• Handling Objections

  • The purpose of listening to the buyer is to gain as much knowledge as possible about their objection.
  • Be sure to not overwhelm the buyer with questions.
  • Respecting the concerns of the buyer demonstrates that the seller is appreciative of his concerns.
  • The seller does not just want to ignore the buyer and his concerns.
  • Describe the types of buyer's objections and how to address them

• Decision-Making Units

  • The economic buyer - This individual is responsible for buying products that enable the company to achieve a business advantage.
  • The economic buyer justifies the purchase by linking it to profit.
  • The economic buyer's position within the organization can range from the business unit manager level to as high as the CEO. .
  • The infrastructure buyer - This role influences the buying decision at the execution level.
  • The infrastructure buyer is typically someone in the IT department.

• Post-Purchase Behavior

  • Cognitive dissonance, another form of buyer's remorse, is common at this stage.
  • This approach could help influence or alleviate feelings of cognitive dissonance or "buyer's remorse" following a product purchase.

• Preapproach

  • What are the buyer's needs?
  • What is the buyer's problem that can be solved with the salesperson's offering?
  • A salesperson should read all he can about his market, using information that is readily and freely available in libraries, reference books, trade directories, newspapers, and magazines.
  • Careful planning offers advantages for both the salesperson and the buyer.
  • Focus on important customer needs and communicate the relevant benefits to the buyer.

• Personal Selling

  • At the core of personal selling is the human exchange between buyer and seller.
  • During this step, questions are asked to identify the current situation, the source and impact of any problems, the benefits of the product as part of the solution, and the buyer's level of interest.
  • This step is designed to grab the buyer's attention, ignite interest, create desire, and inspire action (AIDA) by showing the product's advantages and benefits.
  • Marketing campaigns seek to drive potential customers towards sales people.
  • Though quite different in nature, marketing and sales departments handle similar concepts.

• Organizational Objectives

  • Reference price effect – The buyer's price sensitivity for a given product increases the higher the product's price relative to perceived alternatives.
  • Perceived alternatives can vary by buyer segment, by occasion, and other factors.
  • Switching costs effect – The higher the product-specific investment a buyer must make to switch suppliers, the less price sensitive that buyer is when choosing between alternatives.
  • Price-quality effect – Buyers are less sensitive to price the more that higher prices signal higher quality.
  • Expenditure effect – Buyers are more price sensitive when the expense accounts for a large percentage of buyers' available income or budget.