Business buyers are big time buyers. Making them your prospective client is very healthy for your business, and can completely change the way you work.
If you export your business products, then knowing the demography, culture and influencing factors is essential to understand.
1. Economic developments: Purchasing of materials depend upon the country’s economic conditions.
If the economy is growing rapidly usually the consumption also grows proportionately then company should source materials accordingly.
The economic health of the nation provides image for the organization too.
For example India's economy is growing constantly and doing business in India will certainly improve business for companies.
2. Supply conditions: Raw materials required should be matched with the demand condition of the company.
If there is an irregular or seasonal demand exists then company should adjust their supplies.
Any shortage of the raw materials will force the company to go out of the company.
3. Political and Legal environment: The unstable government will have unpredictable policies.
Any change in the government policy will have direct or indirect impact on the company.
For example, An engineering firm work towards better environment standards in their products assuming that all automobile companies adhere to the international regulations but the government decided to post pone the regulation standard implementation for 12 years the entire material manufactured and raw materials will have extra holding and inventory costs.
4. Competitive environment: Business buying is very complex. The numbers of buyers are very few.
Any technology change adopted by the competitor should be carefully observed.
If the company not able to identify the competitors move survival will become difficult.
5. Culture and customs: Every country has its own culture and customs.
As discussed above, why one should not sell beef products in India, in same way business buying is also influenced by the culture and customs.
For example, most of the products produced in Japan are of small size to suit their customers.
Any company buying products in Japan should always keep these things in mind.
6. Organizational objectives: Purchasing objectives are derived from the organization objectives.
For example, an organization objective is to reduce the overall cost of 20%.
Its purchasing objectives take this as benchmark and try to reduce the cost by 20%.
Some times they will be forced to cancel the negotiation with a major supplier who may provide value to the organization in the future to meet the current cost projection.
7. Organizational policies and procedures: Companies’ policies like centralization versus decentralization of buying and selling will have direct impact on the company’s production.
8. Organization structure and systems: Lesser the hierarchy more will be the flexibility in the organization.
Companies with more number of hierarchies will have plenty of problems to be addressed.
9. Interpersonal factors: business buying will have different outcome on the basis of authority, status, empathy and persuasiveness that customer and organization posses.
10. Individual factors. Age, education, job position, Personality risk attitudes of individual will determine the buying behavior of each role and in turn these changes will have direct impact on the organization buying.
Have A wonderful day.
If you export your business products, then knowing the demography, culture and influencing factors is essential to understand.
1. Economic developments: Purchasing of materials depend upon the country’s economic conditions.
If the economy is growing rapidly usually the consumption also grows proportionately then company should source materials accordingly.
The economic health of the nation provides image for the organization too.
For example India's economy is growing constantly and doing business in India will certainly improve business for companies.
2. Supply conditions: Raw materials required should be matched with the demand condition of the company.
If there is an irregular or seasonal demand exists then company should adjust their supplies.
Any shortage of the raw materials will force the company to go out of the company.
3. Political and Legal environment: The unstable government will have unpredictable policies.
Any change in the government policy will have direct or indirect impact on the company.
For example, An engineering firm work towards better environment standards in their products assuming that all automobile companies adhere to the international regulations but the government decided to post pone the regulation standard implementation for 12 years the entire material manufactured and raw materials will have extra holding and inventory costs.
4. Competitive environment: Business buying is very complex. The numbers of buyers are very few.
Any technology change adopted by the competitor should be carefully observed.
If the company not able to identify the competitors move survival will become difficult.
5. Culture and customs: Every country has its own culture and customs.
As discussed above, why one should not sell beef products in India, in same way business buying is also influenced by the culture and customs.
For example, most of the products produced in Japan are of small size to suit their customers.
Any company buying products in Japan should always keep these things in mind.
6. Organizational objectives: Purchasing objectives are derived from the organization objectives.
For example, an organization objective is to reduce the overall cost of 20%.
Its purchasing objectives take this as benchmark and try to reduce the cost by 20%.
Some times they will be forced to cancel the negotiation with a major supplier who may provide value to the organization in the future to meet the current cost projection.
7. Organizational policies and procedures: Companies’ policies like centralization versus decentralization of buying and selling will have direct impact on the company’s production.
8. Organization structure and systems: Lesser the hierarchy more will be the flexibility in the organization.
Companies with more number of hierarchies will have plenty of problems to be addressed.
9. Interpersonal factors: business buying will have different outcome on the basis of authority, status, empathy and persuasiveness that customer and organization posses.
10. Individual factors. Age, education, job position, Personality risk attitudes of individual will determine the buying behavior of each role and in turn these changes will have direct impact on the organization buying.
Have A wonderful day.
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