Kotler-Analyzing Business Market-Question 1

1. Business Market vs
Consumer Market

3. What is business Market?
“Marketplaces where organizations
purchase raw materials, natural
resources and components of
other products for their resale or for
use in manufacturing another
product”

5. Fewer, larger buyers
The business market normally deals with far fewer,
much larger buyers than the consumer marketer does

6. Close supplier–customer relationship
Because of the smaller customer base and the importance and
power of the larger customers, suppliers are frequently expected
to customize their offerings to individual business customer needs

7. Professional purchasing
Business goods are often purchased by trained purchasing agents, who
must follow their organizations’ purchasing policies, constraints, and
requirements

8. Multiple buying influences
Buying committees consisting of technical experts and even senior
management are common in the purchase of major goods

9. Multiple sales calls
the sales cycle—between quoting a job and delivering
the product—is often measured in years

10. Derived demand
The demand for business goods is ultimately derived
from the demand for consumer goods

11. Inelastic demand
The total demand is not much affected by price changes
because producers cannot make quick changes in production
methods

12. Fluctuating demand
A 10 percent fall in consumer demand may cause a
complete collapse in business demand

13. Geographically concentrated buyers
The geographical concentration of producers helps to
reduce selling costs

14. Business buyers often buy directly
from manufacturers rather than
through intermediaries

15. Summary

16. Credit
KOTLER, P. & KELLER, K. 2011. Marketing
Management 14th Edition,Upper Saddle River,
NJ, Prentice Hall(With due thanks to the owners
of Photographs)