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What is Business Market , and how does
it differ from comsumer market?
Business Market consists of all the organisations that acquire goods and services used in the production of other products, or services that are sold rented or supplied to others
Biggest enemy to marketers
COMMODITIZATION
How does business market differ from consumer market?
1Fewer and larger buyers than the
consumer market
2Close supplier-customer
relationshipBecause of smaller customer base and
power of large customers, suppliers are expected to customize their offerings to
individual customer needs
3Professional PurchasingPurchasing is done by trained purchasing agents who follow
their organizations policies, constraints and requirements
4Multiple buying
influencesMore people influence business
buying decisions
5Multiple sales calls
For large projects it may take many attempts and large scale
cycles
6Derived and inelastic
demandDemand of business goods is derived
from demand for consumer goods
7Fluctuating Demand
A given percentage increase in the consumer demand can lead to a
much larger percentage increase in demand of the production
8 Geographically concentrated
buyersGeographical concentration of
producers help to reduce the selling cost
9Direct Purchasing
Business buyers often buy directly from the manufacturers unlike in case
of the consumers
Summary• Fewer and larger buyers than the consumer market• Close supplier-customer relationship• Professional purchasing• Multiple buying influences• Multiple sales call• Derived and inelastic demand• Fluctuating Demand• Geographically concentrated buyers• Direct purchasing
Created by :Maulshri Pathak
Internship under :Prof. Sameer Mathur
IIM, Lucknowwww.iiminternship.com