In addition to buying or selling, firms engage In many other activities that keep them in business. For example, the seller of a product must identify demand, promote its products to potential buyers, accept orders, deliver its product, bill and accept payment for Its product, and support its customers’ use of its product after the sale. In many cases, sellers will customize or create a product to a customer’s Specification. These include the buyer and seller.
Buyers is a product also engage in additional activities similarly to the firms. Buyer begins by identifying their specific need. After they identify their need, they then search for products or services that will satisfy the specific need. In traditional commerce, buyers use a variety of search techniques. They may consult catalogs, ask friends read advertisements, or examine directories. Buyers may consult sales person to gather information about Specific features and capabilities of products they are consndering.
After buyers have selected a product or service that will meet the identified need, they must select a vendor who can supply the product or service. Buyers in traditional commerce contact vendors in a variety of ways, including by telephone, by mail, or contact at trade shows. After choosing the vendor, the buyer negotiates a purchase transaction.
This transaction may have many elements, including delivery date, method of shipment, price, warranty, and payment terms, and will often include detailed specifications to be confirmed by inspection when the product is delivered or service is performed. If the buyer is a business, the negotiation process is very different and can be very complicated to deal.
The seller conduct market research to identify customer needs. Even though businesses sell the same product or services for many years they still searching for a better way to improve and expend their offering to their customers. Firms conduct surveys, have salespersons talk with customers, run focus groups, and hire outside consultants to help them to improve and expend their offering. Once customer needs have been identified, sellers create the products and services that they believe will meet those needs.
The seller next step is to make potential customers aware that the new product or service exists. Sellers often engage in many types of activities such as advertising and promotion of their product or service to communicate information with their customers. Once a customer responds to the seller’s promotional activities, the two parties must negotiate the details of a purchase transaction. The negotiation process might be very simple such as a buyer enter a store and purchase the item, or it could be very complicated and required prolonged negotiations if the buyer is at one place and the product is in another place.