Business market customers are organisations that purchase goods and services for business use rather than personal consumption. These customers buy products to produce other goods, resell them, or support their daily operations. The demand in business markets is derived from consumer demand. The number of buyers is limited, but the order size is large. Buying decisions are more formal and involve several people.
Business Market Customers:
1. Producers
Producers are organisations that buy goods and services to produce other products or services. They include manufacturing companies, service providers, and industrial units. For example, a textile mill buying cotton or a software company purchasing computers are producers. Their main aim is to convert inputs into finished goods and earn profit. Producers focus on quality, timely supply, technical support, and price. Buying decisions are usually planned and based on production needs. Long term relationships with suppliers are very important for producers because regular supply helps in smooth production. In India, producers play a major role in industrial development and employment generation.
2. Resellers
Resellers are organisations that buy goods to resell them at a profit without changing the product form. They include wholesalers, distributors, retailers, and dealers. For example, an electronics distributor buying mobile phones from a manufacturer and selling them to retailers is a reseller. Resellers focus on demand, brand popularity, price margins, and fast delivery. They prefer suppliers who provide promotional support and credit facilities. Their buying decisions depend on market trends and consumer demand. In the Indian market, resellers act as an important link between producers and final consumers, especially in reaching rural and semi urban areas.
3. Government
Government organisations purchase goods and services for public use and administration. They include central government, state government, municipalities, and public sector undertakings. Examples include purchasing defence equipment, office supplies, roads, and public transport services. Government buying is guided by rules, budgets, and transparency. Purchases are usually made through tenders and contracts. Price, quality, and compliance with standards are very important. Profit is not the main motive. In India, government is one of the largest buyers in the business market and provides big opportunities for business marketers.
4. Institutions
Institutions are organisations that provide services to society without profit motive or with limited profit. They include schools, colleges, hospitals, charities, and trusts. For example, a hospital buying medical equipment or a university purchasing books is an institutional buyer. Institutions focus on quality, reliability, and reasonable price. Their budgets are usually limited and approved in advance. Buying decisions may take time and follow formal procedures. In India, institutions contribute to education, health, and social welfare, making them an important segment of business market customers.
5. Cooperative Societies
Cooperative societies are organisations formed by members to serve their common economic interests. They work on the principle of mutual help. Examples include dairy cooperatives, credit cooperatives, and agricultural cooperatives. A milk cooperative buying milk processing machines or packaging material is a business market customer. These organisations focus on fair price, quality, and long term benefits for members. Profit maximisation is not the main objective. Buying decisions are usually taken by a managing committee. In India, cooperative societies play an important role in agriculture, rural development, and small scale industries, especially through organisations like dairy and farmer cooperatives.
6. Non Profit Organisations
Non profit organisations purchase goods and services to support social, educational, or charitable activities. They include NGOs, trusts, and social service organisations. For example, an NGO buying computers for skill training programs is a business buyer. These organisations depend on donations, grants, or government support, so cost control is very important. They look for reliable suppliers and good quality at low prices. Buying procedures are formal and approved by authorities. In India, non profit organisations contribute to social development and create demand in the business market.