What is business market and how does it differ from consumer

market

Business market consists of all the organisation

that acquire goods and services used in the production of other products or services that are

sold, rented or supplied to others.

Some major

industries making

up business market

How does business market differ from

consumer market ?

Fewer and larger buyers in

comparison to consumer market

1

Close supplier-customer relationship

Because of smaller customer base and power of large customers, suppliers are expected to customize their offerings to individual customer needs

2

Professional purchasing

Purchasing is done by trained purchasing agents who follow their organizations policies ,constraints and requirements. Must provide greater technical data and advantages over competitors product.

3

Multiple buying influences

More people influence business buying decisions. Business marketers need to send well trained sales representatives to deal with well trained buyers.

4

Multiple sales call For large projects it may take many attempts and large sales cycle

5

Derived and inelastic demand

Demand of business goods is derived from demand for consumer goods. Not affected much by price changes

6

Fluctuating demand

A Given percentage increase in consumer demand can lead to a much larger percentage increase in the demand for plant and equipment necessary to produce additional output.

7

Geographically concentrated buyers

Geographical concentration of producers helps to reduce selling cost

8

Direct purchasing

Business buyers often buy directly from manufacturers rather than through intermediaries as in case of consumers

9

Summary

Professional purchasing

Multiple buying influence

Multiple calling

Close supplier-customer relationship

Direct purchasing

Fluctuating demand

Fewer larger buyers

Geographically concentrated buyers