what is the business market, and how does it differ from the consumer market
TRANSCRIPT
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)