business markets (principles of marketing)

8/14/2019 Business Markets (Principles Of Marketing)

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BUSINESS MARKETBUSINESS MARKET

Khawaja Naveed HaiderKhawaja Naveed Haider

073605-085073605-085


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UNIVERSITY OF MANAGEMENTUNIVERSITY OF MANAGEMENT

AND TECHNOLOGYAND TECHNOLOGY

http://www.umt.edu.pk
http://www.umt.edu.pk/http://www.umt.edu.pk/


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ContentsContents

Types Of Business MarketTypes Of Business Market

Characteristics Of Business MarketCharacteristics Of Business Market

Buying SituationsBuying Situations

Buying Patterns Of Business Customer.Buying Patterns Of Business Customer.


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Whats Business Market?Whats Business Market?

It is the B2B Concept. (Business toIt is the B2B Concept. (Business to

Business). In which a business dealsBusiness). In which a business deals

with another business. To understandwith another business. To understand

it, lets discuss the purpose of it.it, lets discuss the purpose of it.1.1. To make other goods and servicesTo make other goods and services

2.2. To resell to other business users orTo resell to other business users or

consumerconsumer

3.3. To conduct the organizationsTo conduct the organizations

operations like departmentsoperations like departments


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Types Of BusinessTypes Of Business

MarketMarket Therere certain types of businessTherere certain types of business

market. So lets start with their names.market. So lets start with their names.

1.1. Agricultural MarketAgricultural Market2.2. The Reseller MarketThe Reseller Market

3.3. Government MarketGovernment Market

4.4. Service MarketService Market

5.5. Non Business MarketNon Business Market

6.6. International MarketInternational Market


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Agricultural MarketAgricultural Market

The market in which agricultural sector isThe market in which agricultural sector isinvolved is called agricultural market.involved is called agricultural market.Pakistan, India, Srilanka etc., are thePakistan, India, Srilanka etc., are the

agricultural market.agricultural market.

In this, we purchase some inputs likeIn this, we purchase some inputs likeseeds, pesticides etc. First point ofseeds, pesticides etc. First point ofpurpose of business market is applyingpurpose of business market is applying

here. Then we produce something likehere. Then we produce something likewheat, flour and dough. Dairy farming andwheat, flour and dough. Dairy farming andlivestock is also included in agriculturallivestock is also included in agriculturalmarket.market.


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The Reseller MarketThe Reseller Market

It can be defined as the one whoIt can be defined as the one who

purchase and sell it like agents,purchase and sell it like agents,

middleman and wholesaler. In Lahoremiddleman and wholesaler. In Lahore

Pakistan, Shahalam Market is thePakistan, Shahalam Market is the

biggest wholesale market of Asia.biggest wholesale market of Asia.

Theres a turnover of about billions.Theres a turnover of about billions.


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Government MarketGovernment Market

The three purposes can be put inThe three purposes can be put in

government market. If theresgovernment market. If theres

government hospital, it purchasesgovernment hospital, it purchases

medicines for their doctors to give tomedicines for their doctors to give tothe patients. Here the third purpose isthe patients. Here the third purpose is

applying.applying.

Jinnah Hospital Lahore and PunjabJinnah Hospital Lahore and PunjabPrinting Press Lahore are the examplePrinting Press Lahore are the example

in which second purpose is fulfilling.in which second purpose is fulfilling.


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Service MarketService Market

All those organizations who provideAll those organizations who provide

services to their customers likeservices to their customers like

Immigration Consultancy or StudyImmigration Consultancy or Study

Visa Consultancy or Law agencies.Visa Consultancy or Law agencies.


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Non Business MarketNon Business Market

The non profit oriented organizationsThe non profit oriented organizations

are the non business market. Theirare the non business market. Their

chief objective is to work for thechief objective is to work for the

welfare of the people. Edhiwelfare of the people. EdhiAmbulance Service is the worldsAmbulance Service is the worlds

biggest ambulance service inbiggest ambulance service in

Pakistan. There are other like NGOs,Pakistan. There are other like NGOs,Mosque or Church etc.Mosque or Church etc.


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International MarketInternational Market

The process of import and export is includedThe process of import and export is included

in international market. If we see the world,in international market. If we see the world,

we will observe that china is becoming thewe will observe that china is becoming the

international market and getting a higherinternational market and getting a highershare in the economy of other countries. Itshare in the economy of other countries. It

can also be like that I import some garmentscan also be like that I import some garments

from china to Pakistan. Or it can also be likefrom china to Pakistan. Or it can also be like

that I export my products to other countries.that I export my products to other countries.


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Characteristics Of BusinessCharacteristics Of Business

MarketMarket In business market, demand is derivedIn business market, demand is derived

from consumer market. If theres demandfrom consumer market. If theres demandof bike in consumer market, the demandof bike in consumer market, the demand

of steel will also increase.of steel will also increase.

The demand is inelastic. When youThe demand is inelastic. When youincrease price, demand is not going toincrease price, demand is not going tochange. It can also be like if the price ofchange. It can also be like if the price of

steel increases, bike price will alsosteel increases, bike price will alsoincrease and consumer demand will mayincrease and consumer demand will maydecrease.decrease.


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The demand of business market isThe demand of business market is

widely fluctuating.widely fluctuating.

The buyers of business market areThe buyers of business market are

well informed. The one whos gonnawell informed. The one whos gonna

buy something will see all the thingsbuy something will see all the things

and products and as well asand products and as well as

alternatives. But remember one thingalternatives. But remember one thingthat in this, we dont make massthat in this, we dont make mass

marketing.marketing.

Characteristics Of BusinessMarket


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Types Of BuyingTypes Of Buying

SituationsSituations Therere three types of buying situations.Therere three types of buying situations.

1.1. New Task BuyingNew Task Buying

2.2. Straight Re-BuyingStraight Re-Buying

3.3. Modified Re-BuyingModified Re-Buying

Lets discuss them one by one. Theyre soLets discuss them one by one. Theyre so

simple.simple.


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New Task BuyingNew Task Buying

When a user purchase a product orWhen a user purchase a product or

thing first time, we call it new taskthing first time, we call it new task

buying.buying.

It is like that Im gonna introduce aIt is like that Im gonna introduce a

new product in the market so I mustnew product in the market so I must

be needing some raw material andbe needing some raw material and

Ill buy for the first time.Ill buy for the first time.


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Straight Re-BuyingStraight Re-Buying

It is like when you re order the sameIt is like when you re order the same

thing is called straight re buying.thing is called straight re buying.

Im running a retail shop of garmentsIm running a retail shop of garments

and I bought a suit which was veryand I bought a suit which was very

attractive to the customers so Id reattractive to the customers so Id re

order to my wholesaler for the sameorder to my wholesaler for the same

design suit.design suit.


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Modified Re-BuyingModified Re-Buying

It is like when you re order the sameIt is like when you re order the same

thing with some modifications orthing with some modifications or

changes is called modified re buying.changes is called modified re buying.

You bought a separate shirt for yourYou bought a separate shirt for your

garments retail shop. You re ordergarments retail shop. You re order

the same shirt with different colors orthe same shirt with different colors or

with some changes in fabrics etc.with some changes in fabrics etc.


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Buying Patterns OfBuying Patterns Of

Business CustomerBusiness Customer1.1. Purchase a product directly from the manufacturer normally.Purchase a product directly from the manufacturer normally.2.2. Size of the order. Like bulk purchase etc.Size of the order. Like bulk purchase etc.

3.3. Frequency of purchase. Like in what time span you purchase. 2Frequency of purchase. Like in what time span you purchase. 2times in a week or 5 times in a month etc.times in a week or 5 times in a month etc.

4.4. Nature of the relationship. (Long term relationship between buyerNature of the relationship. (Long term relationship between buyerand seller)and seller)

5.5. Length of negotiation period. Like how long you bargain.Length of negotiation period. Like how long you bargain.

6.6. Reciprocity arrangements. It is like Ill buy from you and youllReciprocity arrangements. It is like Ill buy from you and youllbuy from me.buy from me.

7.7. Service Expectation Level. It is like when Im buying from you for aService Expectation Level. It is like when Im buying from you for along time then I must be eligible for more incentives.long time then I must be eligible for more incentives.

8.8. Leasing process. Its like a financial institution like bank will buy aLeasing process. Its like a financial institution like bank will buy aproduct for you and youll pay the installments like PIA.product for you and youll pay the installments like PIA.


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