What is business market how does it differ from consumer market
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Transcript of What is business market how does it differ from consumer market
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What is business market and how does it differ from consumer
market
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Business market consists of all the organisation
that acquire goods and services used in the production of other products or services that are
sold, rented or supplied to others.
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Some major
industries making
up business market
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How does business market differ from
consumer market ?
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Fewer and larger buyers in
comparison to consumer market
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Close supplier-customer relationship
Because of smaller customer base and power of large customers, suppliers are expected to customize their offerings to individual customer needs
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Professional purchasing
Purchasing is done by trained purchasing agents who follow their organizations policies ,constraints and requirements. Must provide greater technical data and advantages over competitors product.
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Multiple buying influences
More people influence business buying decisions. Business marketers need to send well trained sales representatives to deal with well trained buyers.
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Multiple sales call For large projects it may take many attempts and large sales cycle
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Derived and inelastic demand
Demand of business goods is derived from demand for consumer goods. Not affected much by price changes
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Fluctuating demand
A Given percentage increase in consumer demand can lead to a much larger percentage increase in the demand for plant and equipment necessary to produce additional output.
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Geographically concentrated buyers
Geographical concentration of producers helps to reduce selling cost
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Direct purchasing
Business buyers often buy directly from manufacturers rather than through intermediaries as in case of consumers
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Summary
Professional purchasing
Multiple buying influence
Multiple calling
Close supplier-customer relationship
Direct purchasing
Fluctuating demand
Fewer larger buyers
Geographically concentrated buyers