buyer's market

Examples of buyer's market in the following topics:

• Defining a Market System

  • A market system is a way to match buyers and sellers.
  • In other words, a market system is a place (virtual or physical) that facilitates the matching of buyers and sellers.
  • Markets help such buyers and sellers meet to trade.
  • Perhaps the most famous is the stock market in which buyers and sellers trade stocks .
  • The NASDAQ is a stock market where buyers and sellers of stocks can meet and trade.

• What Are Markets

  • Markets are a group of potential buyers with needs and wants and the purchasing power to satisfy them.
  • A basic definition of a market is a group of potential buyers with needs and wants and the purchasing power to satisfy them.
  • International markets, American markets, a shopping center, and even the site of a single retail store can be called a market.
  • The terms buyer's market and seller's market describe different conditions of bargaining strength.
  • The primary types of markets are consumer markets, industrial markets, institutional markets, and reseller markets.

• Lifestyle

  • In consumer marketing, lifestyle is considered a psychological variable known to influence the buyer decision process for consumers.
  • However, in consumer marketing, lifestyle is considered a psychological variable known to influence the buyer decision process of consumers.
  • In this theory, the marketing stimuli (product, price, place and promotion) are planned and processed by companies, whereas the environmental stimuli are based on the economical, political, and cultural circumstances of a society.
  • The buyer's "black box" contains the buyer characteristics (e.g., attitudes, motivation, perception, lifestyle, personality, and knowledge) and the decision process (e.g., problem recognition, information research, alternative evaluation, purchase decision, and post-purchase behavior) which determine the buyer's response (e.g., product choice, brand choice, dealer choice, purchase timing, and purchase amount).
  • The Black Box Model considers the buyer's response as a result of a conscious, rational decision process, in which it is assumed that the buyer has recognized the problem.

• Definition

  • A buyer's perceptions of what constitutes a benefit may vary widely based on the nature of the product.
  • Why you have competitors (or how buyers have managed to survive without your product and why you need buyers more than buyers need you)
  • In this market of parallel competitors, the entrepreneur will be successful only if buyers perceive that the new restaurant offers desirable benefits that are unavailable from existing restaurants.
  • In those instances where firms offering similar products can be found in other markets, the most likely explanation for a lack of competitors is a market that will not sustain the firm.
  • Educating buyers and establishing a market for a new product is expensive.

• Recognition of Revenue at Point of Sale or Delivery

  • Companies can recognize revenue at point of sale if it is also the date of delivery or if the buyer takes immediate ownership of the goods.
  • Goods sold, especially retail goods, typically earn and recognize revenue at point of sale, which can also be the date of delivery if the buyer takes immediate ownership of the merchandise purchased.
  • For goods shipped under FOB destination, ownership passes to the buyer when the goods arrive at the buyer's receiving dock; at this point, the seller has completed the sales transaction and revenue has been earned and is recorded.
  • If the shipping terms are FOB shipping point, ownership passes to the buyer when the goods leave the seller's shipping dock, thus the sale of the goods is complete and the seller can recognize the earned revenue.
  • A street market seller recognizes revenue when he relinquishes his merchandise to a buyer and receives payment for the item sold.

• Handling Objections

  • The purpose of listening to the buyer is to gain as much knowledge as possible about their objection.
  • Be sure to not overwhelm the buyer with questions.
  • Respecting the concerns of the buyer demonstrates that the seller is appreciative of his concerns.
  • The seller does not just want to ignore the buyer and his concerns.
  • Describe the types of buyer's objections and how to address them

• Decision-Making Units

  • The economic buyer - This individual is responsible for buying products that enable the company to achieve a business advantage.
  • The economic buyer justifies the purchase by linking it to profit.
  • The economic buyer's position within the organization can range from the business unit manager level to as high as the CEO. .
  • The infrastructure buyer - This role influences the buying decision at the execution level.
  • The infrastructure buyer is typically someone in the IT department.

• Post-Purchase Behavior

  • Cognitive dissonance, another form of buyer's remorse, is common at this stage.
  • This approach could help influence or alleviate feelings of cognitive dissonance or "buyer's remorse" following a product purchase.

• Types of Risk

  • In order to finance home sales, banks issue bonds that serve as a debt obligation to its buyer.
  • The buyer of the debt is essentially receiving the interest from the bank that the home-buyer is paying to it.
  • Prepayment risk is the risk that the buyer goes ahead and pays off the mortgage.
  • Therefore, the buyer of the bond loses the right to the buyer's interest payments over time.
  • Market risk is the term associated with the risk of losing value in an investment will lose value because of a decline in the market.

• Preapproach

  • What are the buyer's needs?
  • What is the buyer's problem that can be solved with the salesperson's offering?
  • A salesperson should read all he can about his market, using information that is readily and freely available in libraries, reference books, trade directories, newspapers, and magazines.
  • Careful planning offers advantages for both the salesperson and the buyer.
  • Focus on important customer needs and communicate the relevant benefits to the buyer.