Trade is an integral part of commerce. Trade is buying and selling of goods and services . In modern business sales are possible only through marketing. Let us examine different types of buying and marketing system in practice.
BUYING
Buying is a fundamental activity in commerce, We usually buy goods for domestic use from different business organizations. Their objective of holding goods is to sell them for a big profit. The buying process is undertaken for the following three purposes.
* For consumption
* For selling
Factors that to be considered while buying for consumption are,
* Utility
* Quality
* Price
When goods are bought for sale or for production of other goods, we can say that buying is for business purpose. In such buying factors to be considered are ;
* Profitability
* Easy availability
* Consumer's faith in goods purchased
* Possible fluctuation in price
BUYING POLICIES
While buying goods for business use the following common buying policies are adopted:
1. Conservative buying :-
Buying goods in small quantities for current use alone is a conservative buying
policy. Mostly this type of buying is done by small scale retailers. They buy goods for daily business or at the most for two day's use. As the retailer's buy in small quantities for their current business requirements they will get the advantages of trade discounts.
2. Reciprocal buying :-
We might have come across exchange fair being organized for electrical goods and vehicles. Here an individual gets a new product in exchange for an old one. There are industrial enterprises which organize such type of exchange markets, where reciprocal buying takes place. Reciprocal buying is a process of accepting goods in exchange for other goods. Here the producer can ensure a market for his products.
3. Concentrated buying :-
Buying goods from the same producer consistently gives some advantages to the retailers. Such buying is called concentrated buying. The buyer enjoys the reduction of commodities in this method.
BUYING
Buying is a fundamental activity in commerce, We usually buy goods for domestic use from different business organizations. Their objective of holding goods is to sell them for a big profit. The buying process is undertaken for the following three purposes.
* For consumption
* For selling
Factors that to be considered while buying for consumption are,
* Utility
* Quality
* Price
When goods are bought for sale or for production of other goods, we can say that buying is for business purpose. In such buying factors to be considered are ;
* Profitability
* Easy availability
* Consumer's faith in goods purchased
* Possible fluctuation in price
BUYING POLICIES
While buying goods for business use the following common buying policies are adopted:
1. Conservative buying :-
Buying goods in small quantities for current use alone is a conservative buying
policy. Mostly this type of buying is done by small scale retailers. They buy goods for daily business or at the most for two day's use. As the retailer's buy in small quantities for their current business requirements they will get the advantages of trade discounts.
2. Reciprocal buying :-
We might have come across exchange fair being organized for electrical goods and vehicles. Here an individual gets a new product in exchange for an old one. There are industrial enterprises which organize such type of exchange markets, where reciprocal buying takes place. Reciprocal buying is a process of accepting goods in exchange for other goods. Here the producer can ensure a market for his products.
3. Concentrated buying :-
Buying goods from the same producer consistently gives some advantages to the retailers. Such buying is called concentrated buying. The buyer enjoys the reduction of commodities in this method.
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