Business market consist of all the organization that acquire goods and services used in the production of other products or services that are sold ,rented, or supplied to other. The business market characteristic is given below.
Few, larger buyers:
In few, larger buyers compared to consumer market where there are many buyer and seller. Masood Textile is leading knitwear and they export it very few buyers’ large buyers such as Polo, Ralpha, Lauren, Tommy Holier, Hanes, and Levies. Big stores like JCPenney, Macys, Kohl and Walt mart in the United States the all buyers of Masood Mills are in very strong financial position. Close supplier –customer relationship:
Suppliers are frequently expected to customize their market offering to individual business customer need. Masood mills establish good relationship with their buyers by getting expertise in technology. Deep products knowledge managing good human resources and the most important step to provide customer value Masood Mills provides a DTS system by analyzing right mindset of their customer what they want. Professional purchasing:
Business goods are often purchased by trained purchasing agents. They are representative of company, they request for quotations, proposals, and purchase contract. Multiple buying influences:
Buying committees consisting of technical experts and even senior management are common in purchasing of major goods. Multiple sales calls:
Sale cycle between quoting a job and delivering the product –is often measured I years. MTM try to reduce sale call concept because it take much time instead of this they introduced DTS (direct to store)System takes less time and more effective Derived demand:
The demand for business good is ultimately derived for the demand for consumer product .Helping buyer forecasting coming trend of final product by MTM. MTM business analyst regular monitor various stores and collect information about the people what they demand and these information on weekly basis. This forecast can be linked with an electronic purchase order generation if the customer so desires. Inelastic demand:
The total demand for many business goods and services is inelastic that is not much effected by price change.MTM help their customer by forecasting for fashion sensitive suitable merchandisers where style and colors or style will change every eight to nine months, Fluctuating Demand:
The demand for a business goods and services tend to be more volatile that the demand for consumer goods and services. The MTM use Market Intelligence in decision making adds tremendous value to customer. MTM predict future demand what trend in market next season by Market Intelligence system that information is collected by MTM market analyst based on regular face to face with key buyers and merchandiser Geographically concentrated buyers:
Masood mills exported its Knitwear over 85% are to the United states, in order to facilitate customer MTM has established extensive infrastructure in United stat. it has established a modern and spacious warehouses on the west coast and east . Direct purchasing:
Byers often buy directly from manufacturers. masood textile mills offer DTS system in order to facilitate their customer to direct purchasing it they connect their customer stores to MTM warehouse through electronic data interchanging. this just only lead to save time also reduce human cost involved in ordering ,shipping and getting custom clearances and other import related hassle for them. Q: 2
Buying situation depend on newness of buying requirement.
Three types of buying situation
In a straight rebuy, the purchasing departments records supplies such as the bulk chemical on a routine basic and choose supplier on an approved list.MTM introduce automatic recording for their straight rebuy .the straight side replenishment modules allow a company such as JCpenney connect its over 1100 stores to generate...