Question 6
Abu Company Ltd manufactures and sells hospital equipment to organizational markets
a. State four features of the markets the company sells its products to.
b. List and explain three types of the market the company sells to.
Observation
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6 (a) Features of organizational markets
- There are fewer buyers than suppliers in the organizational markets.
- Buyers are geographically concentrated.
- The purchase decision process takes longer time.
- Transactions are usually done through competitive bidding.
- Specialists are involved in the buying process.
- Products are bought for the purpose of further production.
- The demand for the product does not respond to temporary changes in price.
- Personal selling is usually adopted.
- The relationship between buyers and sellers is mutual.
- Organizations purchase goods in large quantities.
- Products are usually bought for resale.
- The buyers are made up of traders, entrepreneur and heads of civil servants
(b) Explanation of the types of organizational markets