The business market consists of organizations that acquire goods and services used to produce other products or services for sale. It differs from the consumer market in several ways: it has fewer but larger buyers, close relationships between customers and suppliers with suppliers frequently customizing offerings, and purchasing done by trained agents. Business buying is also influenced by technical experts and senior staff through multiple sales calls. Demand depends on end consumers and is inelastic, and small consumer changes can cause large fluctuations in business supply.

1. WHAT IS BUSINESS MARKET AND
HOW DOES IT DIFFER FROM
CONSUMER MARKET

2. 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?

3. IT DIFFERS FROM CONSUMER
MARKET IN THE FOLLOWING
WAYS

4. FEWER, LARGER BUYERS

5. CLOSE CUSTOMER SUPPLIER
RELATIONSHIP
IMPORTANCE AND POWER OF LARGE
CUSTOMERS,SUPPLIERS FREQUENTLY
CUSTOMIZE OFFERINGS

6. PROFESSIONAL
PURCHASING
PURCHASING
DONE BY AGENTS
TRAINED
IN ORGANIZATION’S
PURCHASING POLICIES,
CONSTRAINTS ETC.

7. MULTIPLE BUYING INFLUENCES
BUYING TEAM CONSISTS OF
TECHNICAL EXPERST AND SENIOR
PEOPLE

8. MULTIPLE
SALES
CALLS
STUDY SAYS TAKES
AN AVERAGE 4.5
CALLS /1 INDUSTRIAL
SALE

9. DEPENDS ON END CONSUMER
DEMAND
NO CHANGE DUE TO PRICES
DERIVED AND INELASTIC
DEMAND

10. HIGH FLUCTUATIONS
SMALL CHANGES IN CONSUMER MARKET CAUSE
HUGE BUSINESS SUPPLY CHANGES

11. Geographically concentrated buyers
MAJOR BUYERS RESIDE IN ONE PARTICULAR REGION

12. Direct purchasing
BUYERS BUY DIRECTLY AND MOSTLY NO
INTERMEDIATE SOURCES ARE PRESENT

13. 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

14. THANK YOU
BY
YATIN ARORA
B.TECH STUDENT
DELHI TECHNOLOGICAL
UNIVERSITY