Business marketing refers to the sale of products or services from one organization to another for resale or business use, unlike consumer marketing which is sales directly to end users. Business markets differ from consumer markets in several ways: they typically have fewer but larger buyers, require close relationships between suppliers and customers, involve professional purchasing agents following specific policies, need multiple people within an organization to influence buying, may require many sales calls to close deals especially for capital equipment, have demand that depends on downstream consumer demand, have inelastic demand that is not greatly affected by price changes, and can experience more volatile fluctuating demand compared to consumer markets.

1. BUSINESS MARKETING

2. 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

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

4. Business marketers
contrast with Consumer
markets in 8 ways :
1. Fewer, Larger Buyers.
2. Close Supplier-customer
relationship
3. Professional Purchasing
4. Multiple Buying Influence
5. Multiple Sales Calls
6. Derived Demand
7. Inelastic Demand

5. 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.

6. 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.

7. 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.

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

9. 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.

10. Derived Demand
The 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

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

12. Fluctuating Demand
The 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

13. RECAP
1. Business Market vs Consumer Market
2. 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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