Business Market vs Consumer Market

What is business Market?

“Marketplaces where organizations purchase raw materials, natural resources and components of other products for their resale or for use in manufacturing another product”

Fewer, larger buyers

The business market normally deals with far fewer, much larger buyers than the consumer marketer does

Close supplier–customer relationship

Because of the smaller customer base and the importance and power of the larger customers, suppliers are frequently expected to customize their offerings to individual business customer needs

Professional purchasing

Business goods are often purchased by trained purchasing agents, who must follow their organizations’ purchasing policies, constraints, and requirements

Multiple buying influences

Buying committees consisting of technical experts and even senior management are common in the purchase of major goods

Multiple sales calls

the sales cycle—between quoting a job and deliveringthe product—is often measured in years

Derived demand

The demand for business goods is ultimately derived from the demand for consumer goods

Inelastic demand

The total demand is not much affected by price changes because producers cannot make quick changes in production methods

Fluctuating demand

A 10 percent fall in consumer demand may cause a complete collapse in business demand

Geographically concentrated buyers

The geographical concentration of producers helps to reduce selling costs

Business buyers often buy directly from manufacturers rather than through intermediaries

Summary

CreditKOTLER, P. & KELLER, K. 2011. Marketing Management 14th Edition,Upper Saddle River, NJ, Prentice Hall(With due thanks to the owners of Photographs)