analysing business market

1. What is business market and how
does it differ from consumer
market

2. 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.

3. Some major
industries making
up business market

4. How does business market differ from
consumer market ?

5. Fewer and larger
buyers in
comparison to
consumer market
1

6. 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
2

7. 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
competitors product.
3

8. Multiple buying
influences
More people influence
business buying decisions.
Business marketers need to
send well trained sales
representatives to deal with
well trained buyers.
4

9. Multiple sales call
For large projects it may
take many attempts and
large sales cycle
5

10. Derived and
inelastic demand
Demand of business
goods is derived from
demand for
consumer goods. Not
affected much by price
changes
6

11. 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.
7

12. Geographically
concentrated buyers
Geographical
concentration of
producers helps to
reduce selling cost
8

13. Direct purchasing
Business buyers often buy
directly from manufacturers
rather than through
intermediaries as in case of
consumers
9

14. Summary
Professional
purchasing
Multiple
buying
influence
Multiple
calling
Close supplier-
customer
relationship
Direct
purchasing
Fluctuating
demand
Fewer larger
buyers
Geographically
concentrated
buyers