WHAT IS BUSINESS MARKET AND HOW DOES IT DIFFER FROM

CONSUMER MARKET

THE BUSINESS MARKET CONSISTS OF ALL THE ORGANIZATIONS THAT ACQUIRE GOODS AND SERVICES USED IN THE PRODUCTION OF OTHER PRODUCTS OR SERVICES THAT

ARE SOLD, RENTED, OR SUPPLIED TO OTHERS.  

WHAT IS A BUSINESS MARKET?

IT DIFFERS FROM CONSUMER MARKET IN THE FOLLOWING

WAYS

FEWER, LARGER BUYERS

CLOSE CUSTOMER SUPPLIER RELATIONSHIP

IMPORTANCE AND POWER OF LARGE CUSTOMERS,SUPPLIERS FREQUENTLY

CUSTOMIZE OFFERINGS

PROFESSIONAL PURCHASING

PURCHASING DONE BY AGENTS

TRAINED IN ORGANIZATION’S

PURCHASING POLICIES, CONSTRAINTS ETC.

MULTIPLE BUYING INFLUENCES

BUYING TEAM CONSISTS OF TECHNICAL EXPERST AND SENIOR PEOPLE

MULTIPLE SALES CALLS

STUDY SAYS TAKES AN AVERAGE 4.5 CALLS /1 INDUSTRIAL SALE

DEPENDS ON END CONSUMER DEMAND

NO CHANGE DUE TO PRICES

DERIVED AND INELASTIC DEMAND

HIGH FLUCTUATIONS

SMALL CHANGES IN CONSUMER MARKET CAUSE HUGE BUSINESS SUPPLY CHANGES

Geographically concentrated buyers

MAJOR BUYERS RESIDE IN ONE PARTICULAR REGION

Direct purchasing

BUYERS BUY DIRECTLY AND MOSTLY NO INTERMEDIATE SOURCES ARE PRESENT

WHAT IS A BUSINESS MARKET?

DIFFERS FROM CONSUMER

MARKET IN THE FOLLOWING WAYS

FEWER, LARGER BUYERS

MULTIPLE SALES CALLS

DERIVED AND INELASTIC DEMAND

CLOSE CUSTOMER SUPPLIER

RELATIONSHIP

HIGH FLUCTUATIONS

SUMMARY

THANK YOU

BY YATIN ARORAB.TECH STUDENT DELHI TECHNOLOGICAL UNIVERSITY