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Selling to other Firms vs Consumers

There are far more people than businesses in this world. However, businesses have a much greater purchasing power than most individuals, making them attractive customers. Business to business selling is about developing a relationship with the client.

Individual clients are generally found through advertising. Because individuals are buying few items, it is rarely possible, let alone cost effective, to seek out each individual customer and present the product to them. In fact most companies sell through an intermediary that sells a variety of similar products to capitalize on each others marketing.

Industry trade journals are good for advertising to businesses. Yet business clients are just as likely to develop through trade shows or professional organizations. Technology can help. Websites can record who has viewed them, giving the company a clue to who new customer will be. Sometimes business salespeople have to actually approach the clients rather than waiting from them to call.

Business sales generally take longer than individual sales. The presentation may be made in person. The proposal will have to be approved by managers. Even collections take longer as many businesses only pay bills once or twice per month. These difficulties are offset, however, buy the large volume a business generally sells.

The relationship model is critical in business to business selling because they rely on long-term arrangements for future sales. For example, if an individual buys a computer, they probably looked through the weekly newspaper to find the lowest price. Chances are the store will never see the person again. If the individual has a question they will rely on the manufacturers hot-line or a friend's advice. When it no longer serves the individual's needs, it will probably be discarded and replaced.

If a business buys a computer system, however, they will call the firm that sold it to them. Installation and su...

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Selling to other Firms vs Consumers. (1969, December 31). In LotsofEssays.com. Retrieved 11:44, March 29, 2024, from https://www.lotsofessays.com/viewpaper/2001385.html