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What is the business market, and how does it differ from the consumer market

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Kotler-Analyzing Business Market-Question 1

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What is the business market, and how does it differ from the consumer market

  1. 1. Business Market vs Consumer Market
  2. 2. 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”
  3. 3. Fewer, larger buyers The business market normally deals with far fewer, much larger buyers than the consumer marketer does
  4. 4. 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
  5. 5. Professional purchasing Business goods are often purchased by trained purchasing agents, who must follow their organizations’ purchasing policies, constraints, and requirements
  6. 6. Multiple buying influences Buying committees consisting of technical experts and even senior management are common in the purchase of major goods
  7. 7. Multiple sales calls the sales cycle—between quoting a job and delivering the product—is often measured in years
  8. 8. Derived demand The demand for business goods is ultimately derived from the demand for consumer goods
  9. 9. Inelastic demand The total demand is not much affected by price changes because producers cannot make quick changes in production methods
  10. 10. Fluctuating demand A 10 percent fall in consumer demand may cause a complete collapse in business demand
  11. 11. Geographically concentrated buyers The geographical concentration of producers helps to reduce selling costs
  12. 12. Business buyers often buy directly from manufacturers rather than through intermediaries
  13. 13. Summary
  14. 14. Credit KOTLER, P. & KELLER, K. 2011. Marketing Management 14th Edition,Upper Saddle River, NJ, Prentice Hall(With due thanks to the owners of Photographs)

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