2. Participation in market place
Fewer purchasers More number of buyers
Buying decision
More than one person is involved in Individual customer;
buying decisions; fewer stakeholders
Consumer Markets
controlled by their companies
Business Markets
Support
Technically and commercially aware Peer consulting
individuals
Influence/Risk
Post purchase blame or credit can Greater perceived risks;
be shared;
companies might be less affected Individuals get more affected by what
by what other companies are other consumers are buying
buying
12/19/2012 MBA, TERI University 2
3. Participation in market place
Fewer purchasers More number of buyers
Buying decision
More than one person is involved in Individual customer;
buying decisions; fewer stakeholders
Consumer Markets
controlled by their companies
Business Markets
Support
Technically and commercially aware Peer consulting
individuals
Influence/Risk
Post purchase blame or credit can Greater perceived risks;
be shared;
companies might be less affected Individuals get more affected by what
by what other companies are other consumers are buying
buying
12/19/2012 MBA, TERI University 3
4. Summary
Perspective Business Markets Consumer Markets
Participation in market Fewer purchasers Large no. of buyers
place
Buying decision more than one person is Individual customer
involved in buying decisions
Limited stakeholders
Support Technically and Look to their peers
commercially aware
individuals
Knowledge levels are high Knowledge levels are low
Influence/Risk More widespread Greater individual risk
12/19/2012 MBA, TERI University 4
6. Industry Consumer
Mass Advertising. Normally focussed on technical Often suitable and used
media. Not normally TV. including TV, Radio and mass
circulation print advertising.
Direct Mail. Often very suitable due to small Sometimes not viable due to
numbers high numbers & low value.
Face to face selling Often very suitable for company Rarely suitable for individual
by specialists. specialists items to end users.
Hospitality Very suitable because of often high Not often used
business value per decision maker
Editorial. Very suitable in targetted print Sometimes suitable.
media.
Publicity. Suitable Suitable
Discounting. Often to reward volume Discount sales are often used for
customers. sales promotion.
Specialist Often used for high and lower Mainly suitable for higher value
exhibitions and or value items. items unless selling consumer
trade shows. wares to retail buyers.
Point of sale Not often used Extensive use.
displays and
communications.
12/19/2012 MBA, TERI University 6
7. Industry Consumer
Direct sales force Often used in industry to Used where needed to sell
sell direct to buyers and to resellers more than to
specifying engineers. actual consumers.
Wholesalers Sometimes used. Often used in chain before
retailers especially in
export markets.
Distributors Often used. Sometimes used.
Catalogues Form part of distribution Form part of distribution
chains. chains.
Commissioned Agents Often used. Sometimes used.
E-Commerce via Internet Becoming more prevalent Becoming more prevalent
to cut out the middle man at retailers, less so for
and reduce stocks. manufacturers because of
their narrow ranges.
Multi-level marketing Rarely used. Used for some specialities.
including party plan.
12/19/2012 MBA, TERI University 7
8. Stages of buying process
Industry Consumer
Problem Recognition
Problem
Recognition
Need description &
Product Specification
Information
Search
Supplier Search
Proposal Solicitation Evaluation of
Alternatives
Supplier selection
Purchase
Decisions
Order Routine
Specification
Post purchase
Performance Review behavior
Source: Marketing Management: kotler
9. Factors influencing consumer behavior
Culture
Social
Personal
Culture Reference Age and Psychological
groups life-cycle
Occupation Motivation
Sub- Perception
culture Family Economic Buyer
situation Learning
Lifestyle Beliefs and
Social Roles attitudes
class and Personality
status and
self-concept
