Essay on Derived and Fluctuating Demand and Buying Centers

Introduction

Derived demand arises when they want for a particular product happens due to a want of another product. In business to business products derived demand arises when the demand arises from another source other than the user or the primary buyer. The source, in this case, is the consumers so if the users or employees of a particular organization do not require the products, then it means that the seller is in trouble. LeBron effect occurs when the demand for products is derived from an external factor.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

In this era, the majority of people have a phone, and their preferred choice is a smartphone (Longley 2019). People prefer smart phones because they can access online and social media platforms. Through this demand, other companies benefit as they get a chance to do business with the company that produces smart phones. Some of the mobile accessories are not manufactured by the company that produces phones. Instead, the company contracts another company to produce them and sell them to the smartphone company.

When there is an increased demand for the smartphones the lithium battery company benefits directly because they will sell more batteries (Longley 2019). Were it not for the demand of the phones the lithium battery businesses would not thrive because their sales are dependent on the number of smartphones demanded. Apart from the lithium batteries, other sectors such as copper producers and protective screen manufacture benefit from the demand of smartphones. The concept of business to business marketing is better explained in this scenario because the smartphone accessories manufacturers sell their products to the phone manufacturer. The consumer is the last beneficiary, but several businesses are involved when producing the end product.

I work for a company known as navy exchange service command (NEXCOM) that concentrate on providing goods and services to authorized personnel mainly active duty military personnel, retirees, reservists and their families ("NAVSUP - Products & Services," n.d.). The main company goal is to provide goods and services at an affordable price to the servicemen and women and their families at an affordable price as a way of recognition of the serious role that they play in protecting the country. The company products are on high demand because of their subsidized prices; military personnel gets the goods at cheaper prices less than the ones sold by other retailers.

The company buys the goods from the manufacturer in large scale hence its ability to get the goods at affordable prices because there are no middlemen involved, and as a result they offer the goods at relatively low prices to the buyers ("NAVSUP - Products & Services," n.d.). The company has also produced its products and services that it sells to the customers at affordable prices. The company does not sell the products that it sells at high prices to make huge profits. The company also buys unprocessed goods and adds value to them before reselling to the customers.

Conclusion

Buyers need to make decisions regarding the goods and services that they wish to purchase. The buying decisions are made based on the needs of the customers and the finances that they have to purchase products. The buyer evaluates the qualities of the products and their abilities to satisfy the needs that they have, and they chose the product that meets their needs at affordable prices. Also, alternatives are considered when the purchaser does not have finances to purchase the main product.

Reference

Longley, R. (2019). What Is Derived Demand? Definition and Examples. Retrieved from https://www.thoughtco.com/derived-demand-definition-examples-4588486

NAVSUP - Products & Services. Retrieved from https://www.navsup.navy.mil/public/navsup/products_services/