BUSINESS MARKETING

Business Market vs Consumer Market

Business Marketing: Business Marketing refers to the sale of either products or services or both by one organization to other organizations that further resell the same or utilize to support their own system.

Consumer Marketing: on the other hand refers to the transaction of goods and services between organizations and potential customers.

Business Market vs Consumer Market

Business marketers contrast with Consumer markets in 8 ways :1. Fewer, Larger Buyers.2. Close Supplier-customer

relationship3. Professional Purchasing4. Multiple Buying

Influence5. Multiple Sales Calls6. Derived Demand7. Inelastic Demand8. Fluctuating Demand

Fewer, Larger Buyers

Business market normally deals with FEWER and much LARGER buyers than the consumer. EXAMPLE :Industries such as aircraft engines and defence weapons.

Close Supplier-Customer relationship

Because of smaller customer base and the importance and power of larger customers, suppliers and frequently expected to customise their offering to individual business customer needs.

Professional Purchasing

Business goods are often purchased by trained purchasing agents, who must follow their organisations purchasing policies, constraints, and requirements.Example :request for quotation, proposals, and purchase contacts.

Multiple Buying Influence Business marketers need to send well trained sales representatives and sales team to deal with the well trained buyers.

Multiple Sale Calls

In case of capital equipment sale for large projects,it may take many attempts to fund a project, and the sales cycle-between quoting a job and delivering a product.

Derived DemandThe demand for business goods is ultimately derived from the demand for consumer goods.The business marketer must closely monitor the buying patterns of ultimate consumers.

Business marketer

Consumer Market

Inelastic Demand

The total demand for many business goods and services is inelastic that is they are not much affected by price changes.

Fluctuating DemandThe demand for business goods and services tends to be more volatile than the demand for consumer goods and services.Acceleration effect: A given percentage rise in consumer demand can lead to a much larger percentage increase in demand for plant and equipment.

RECAP1. Business Market vs Consumer Market2. Business marketers contrast with Consumer

markets in 8 ways: Fewer, Larger Buyers. Close Supplier-customer relationship Professional Purchasing Multiple Buying Influence Multiple Sales Calls Derived Demand Inelastic Demand Fluctuating Demand

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Disclaimer

Created by,N.VishwaPriyatham, during an internship.under Mr, Sameer Mathur, IIM Lucknow.www.IIMinternship.com