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