Understanding Types of Buyers in Business Transactions

1. Welcome to all for the PSK Online lecture Chapter 3 Scientific Purchasing By Dr. Dhiraj Ovhal HOD of Commerce

2. Q.1 Types of buyers ? Meaning:- In business terms, there are different types of consumer of goods and services that are offered for sale by companies and the manufacturers. A product manufacturing Company has to determine, know or understood the type of Consumer, the market for the products which they intend to introduce in the market. It also enables the Company to avail the right and desired product to the Consumers which increase sales and profit for the Company. Definition Consumer can be defined as the "one who purchases goods and services use"

3. Q.1 Types of buyers ? Sr. Particular Examples 1 Ultimate buyers :- Consumer purchase goods ( Common People) It includes trade intermediaries who buy for selling Like Wholesaler, Retailer, etc. Purchase Raw materials, Spare parts, tools, equipments, machinery for production purpose Govt. agencies and Public Utility Services like Railway. Electrical Board or government company like BHEL,GAIL,SAIL to buy the products. 2 Middleman/Agent:- 3 Industrial buyers/Manufacture:- 4 Government buyers:-

4. 1.Ultimate buyers :-  Consumer purchase goods ( Common People)  Ultimate buyer means the consumers who buy goods for their own consumption. 'Ultimate buyer' is also known as consumer or common consumer. The ultimate buyer goes by his budget. He usually resorts to buying for consumption. He limits his purchasing

5. 2. Middleman/Agent::- It includes trade intermediaries who buy for selling Like Wholesaler, Retailer, etc.  Middleman is not the buyer and not the consumer. He is the facilitator of trade transaction. He purchases goods for the needs of other for the gain in the form of commission. The difference between the price they pay for their purchasing plus other allied expenses relating to purchasing and managing the business affairs and the price they charge from the ultimate consumer is their gain. 

6. 3 Industrial buyers/Manufacture:-  Purchase Raw materials, Spare parts, tools, equipments, machinery for production purpose Industrial Buyers make purchases of raw materials, stores, parts and equipment for manufacturing purpose. In the words of Walter, "Industrial purchasing is the procurement by purchase of the proper materials, machinery, equipment and supplies of stores used in the manufacture of a product adopted to marketing in the proper quantity and quality at the proper time and at the lowest price consistent with the quality desired".

7. 4. Government buyers:- Material research is helping to estimate how the materials required fro the production so that it would helps in smooth functioning of production activities.  Government Agencies and Public Utility Service providers are the largest buyers such as railways, electricity board, manufacturing organizations like BHEL, GAIL, SAIL etc. They are concerned for better services than the cost reduction. They are interested in getting money's worth for which they tried to maintain purchasing efficiency under certain rules, regulation and norms

8. Q.1 :-Types of Buyers ? Sr. Particular Examples 1 Ultimate buyers :- Consumer purchase goods ( Common People) It includes trade intermediaries who buy for selling Like Wholesaler, Retailer, etc. Purchase Raw materials, Spare parts, tools, equipments, machinery for production purpose Govt. agencies and Public Utility Services like Railway. Electrical Board or government company like BHEL,GAIL,SAIL to buy the products. 2 Middleman/Agent:- 3 Industrial buyers/Manufacture:- 4 Government buyers:-

9. Thank You

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