Who are considered external customers in a business context?

External customers in a business context refer to individuals or groups who are not part of the organization but interact with it in terms of purchasing products or services. Dealers and ultimate customers fit this definition well, as they are external to the company and play a crucial role in the marketplace. Dealers act as intermediaries that sell products to end consumers, who are the ultimate customers. Their needs and feedback are vital for companies to understand market demand, improve offerings, and enhance customer satisfaction.

In contrast, employees of the company, management and staff, and shareholders and investors are all internal stakeholders. Employees and management are directly involved in the operations and decision-making processes, while shareholders and investors provide capital and have an interest in the financial success of the company, but they do not purchase products or services in the same way customers do. Recognizing external customers is crucial for businesses as they are integral to driving revenue and growth.