There are many characteristic which set business market apart from consumer markets

There are many characteristic which set business market apart from consumer markets

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There are many characteristic which set business market apart from consumer markets. Business buyer base is smaller in comparison to consumer market. Consumer-supplier relationship is much stronger in a business market owing to few players in the field. Customer and supplier are very dependent on each for survival. For example, if car companies falter then their companies will suffer. So companies not only have to monitor business market but also pay attention to end consumer market. Buying for the business is a responsibility of purchase department which adheres to company rules and regulations. The buying decision is influenced by many players ranging from technical experts to the finance department. This means that sales people have to do multiple visits and present information to different departments. In business market there
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Unformatted text preview: is no distribution channel, thereby reducing overhead cost. From the above discussion it is clear that the business market functions differently from consumer markets. Buying decision especially is more complex owing to many players. If buying decision is a re-purchase than purchasing department would place the order with an old supplier. Companies keep a list of approved vendors from which they choose as per purchase requirement. If buying decision is a modification from previous order in terms of specifications, amount, price, etc. than companies looks to have a discussion with suppliers. Purchase department may look to other suppliers for a modification order. If the buying decision is a new product or service than a lengthy process is followed with discussion and meeting between representatives from various departments....
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This note was uploaded on 11/26/2011 for the course MARKETING mg 103 taught by Professor - during the Fall '09 term at Montgomery.

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There are many characteristic which set business market apart from consumer markets

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