Group 10.

Introduction to B2B Market

Definition:-“Business Marketing is the practice of individuals, or organizations, including commercial businesses, governments and institutions, facilitating the sale of their products or services to other companies or organizations that in turn resell them, use them as components in products or services they offer, or use them to support their operations”

Areas of Difference B2B Market Consumer Market

Market Characteristics Geographically Concentrated Geographically Disbursed

Relatively Fewer Buyer Mass Market

Product Characteristic Technical Complex Standardize

Customized

Service Characteristic Service , timely Availability extremely Important

Somewhat Important

Buying Behavior Involvement of Various functional area from both the ends

Involvement of family members

Purchase Decisions are performance based and rational

Purchase decisions are mostly based on Physiological /social/psychological needs

Technical Expertise Relatively less technical expertise is required

Stable Interpersonal relationship Non- Personal relationship

Company Sales Force

Manufacturer

Representative Agency

Distribution Dealer

Customer CustomerCustomer