1. Is it totally different from Consumer Marketing ?
2. Which one is tougher?
3. Where do you have better job opportunities?
I want to buy a pair of shoes- analyze the situation
4. How Business & Consumer Markets Differ
www.a2zmba.com Large and few buyers Products Complex/ Customized Rational Buying behavior Shorter, more Direct channels Geographical Concentration Distinct, Observable stages Of Decision Perhaps prefer to buy direct
www.a2zmba.com Multiple sales call Reciprocity Close Relationship Leasing Global competition Several influencers Professional buyers
Derived Demand INCREASED INTERNATIONAL TRADE Demand: Bauxite DEMAND FOR BUSINESS FLYING DEMAND FOR AIRPLANES DEMAND FOR SHEET METAL AND ALUMINUM INCREASED MINING REQUIRED
Price/cost increases passed to customer
Component prices small % of total cost
Order committed already, cannot back track
Linked to economy’s ups and downs
Bullwhip effect ?
Du pont, one of the largest producer of synthetic fibers, spends million dollars annually on advertising in TV despite no competition and not a healthy bottom line. Du pont invested? $ 1 million on advertising stretch polyester yarn cotton blend. They do not produce Jeans nor market to consumers.
Isn’t it weird ? Cried CFO
Cross elastic demand
Philips Transistor radio division at Pune virtually had to pull down his shutters
He was doing well, no competition
Customers were happy
with the advent of TV ?
Classified differences- Areas wise Areas Business Consumer Market Characteristics
Service very important
Some what important
Buyer seller dyad
Classified differences- Areas wise Areas Business Consumer Channel Characteristics
Personal selling emphasis
One to one
One to many
List price for standard parts
Any sale to an industrial user, wholesaler, retailer, or organization other than the ultimate consumer. . .
Local to International
Bought by business
Upstream Manufactured materials Sheet metal Plastic Resin Direct Power streeing Car Seats Tyres Auto Mnfr Maruthi Fiat Ford Auto Buyers www.a2zmba.com