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

1. What is Business
Market , and how does
it differ from
comsumer market?

2. Business Market consists of all the organisations
that acquire goods and services used in the
production of other products, or services that
are sold rented or supplied to others

3. Biggest enemy to marketers
COMMODITIZATION

4. How does business market differ from consumer
market?

5. 1
Fewer and larger
buyers than the
consumer market

6. 2
Close supplier-customer
relationship
Because of smaller customer base and
power of large customers, suppliers are
expected to customize their offerings to
individual customer needs

7. 3
Professional Purchasing
Purchasing is done by trained
purchasing agents who follow
their organizations policies,
constraints and requirements

8. 4
Multiple buying
influences
More people influence business
buying decisions

9. 5
Multiple sales calls
For large projects it may take
many attempts and large scale
cycles

10. 6
Derived and inelastic
demand
Demand of business goods is derived
from demand for consumer goods

11. 7
Fluctuating Demand
A given percentage increase in the
consumer demand can lead to a
much larger percentage increase in
demand of the production

12. 8
Geographically concentrated
buyers
Geographical concentration of
producers help to reduce the selling
cost

13. 9
Direct Purchasing
Business buyers often buy directly
from the manufacturers unlike in
case of the consumers

14. Summary
• Fewer and larger buyers than the consumer market
• Close supplier-customer relationship
• Professional purchasing
• Multiple buying influences
• Multiple sales call
• Derived and inelastic demand
• Fluctuating Demand
• Geographically concentrated buyers
• Direct purchasing

15. Created by :
Maulshri Pathak
Internship under :
Prof. Sameer Mathur
IIM, Lucknow
www.iiminternship.com