The main process of marketing is buying. There are two aspects of exchange, i.e buying and selling. In the absence of buying, exchange or marketing becomes impossible. Without buying, selling cannot be done, similarly, without selling buying cannot be.
Buying and selling are the two functions to be performed at a time in marketing process. Buying goods for use or resale is called buying function. Taking goods by paying certain price to the seller is buying.
Buying and selling are the two functions to be performed at a time in marketing process. Buying goods for use or resale is called buying function. Taking goods by paying certain price to the seller is buying.
In marketing, the function of buying does not mean only buying something. It is used in broad sense. Buying function of marketing includes the functions such as determining necessary goods, finding out the supply sources, selecting quantity, quality, grade, size, deciding on price, discount, delivery date, means of transport and other agreement and finally transferring ownership.
In buying function of marketing, ownership of goods is transferred to buyer, for which buyer pays certain price. Goods can be bought to consume, resale or use in production.
So, producers/manufacturers, wholesalers, retailers or ultimate consumers buy goods. So, buyers can be divided in three classes as manufacturers, middlemen and ultimate consumers.
1. Manufacturers
Manufacturers buy goods to use in production. They may buy raw materials, semi-finished goods and parts etc. to use in producing certain goods. They may buy capital goods such as machines, tools, manufacturing plant, building etc. They also may buy necessary supplies and operating materials to facilitate production process. Such buyers are called industrial buyers.
2. Middlemen
Wholesalers and retailers also buy goods. They are called middlemen. Wholesalers buy bulk quantity of goods directly from manufacturers to sell to retailers or consumers. Similarly, retailers buy goods directly from manufacturers or wholesalers to sell to ultimate consumers. In this way wholesalers or retailers work both as buyers and sellers in marketing process.
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3. Ultimate Consumers
Ultimate consumers buy goods to satisfy their need. They buy daily necessary goods such as food, grains. clothes, medicines, education materials, etc. to meet their needs and also buy luxury capital goods like motorcar, radio, TV, refrigerator, washing machine and so on. Ultimate consumers buy necessary goods in small quantity repeatedly and also may buy in bulk quantity use for longer time.
In this way, different buyers buy goods for different purposes. The buying function include the important activities such as taking decisions on what to buy, when to buy, where to buy from etc.
