Business to Business Markets

1
Business to Business Markets
2
Characteristics of Business Markets

• Huge size
• Market Structure and Demand
• Geographically concentrated
• Fewer, larger buyers
• Derived demand
• Inelastic demand
• Fluctuates more

3
Characteristics ofBusiness Markets (contd)

• Nature of the Buying Unit
• More buyers
• More professional (?)
• Types of Decisions and Decision Processes
• More complex
• More formalized
• Long-term relationships

4
Relationship Marketing

• BENEFITS TO SELLER
• Search costs
• Transaction costs
• Reduced uncertainty
• Information
• Reduced inventory costs
• Responsiveness

5
Relationship Marketing (contd)

• BENEFITS TO BUYER
• Search costs
• Transaction costs
• Reduced uncertainty
• Information
• Reduced inventory costs
• Responsiveness

6
Buying Decisions

• Straight Rebuy
• Modified Rebuy
• New Task

7
Buying Center

• All individuals who participate in the purchasing
  decision-making process
• ROLES
• Initiator
• Users
• Influencers
• Buyers
• Deciders
• Gatekeepers