BUSINESS MARKETSVS.

CONSUMER MARKETS

04/09/2023 MBA, TERI University 2

Participation in market place

Fewer purchasers More number of buyers

More than one person is involved in buying decisions; controlled by their companies

Buying decision

Individual customer; fewer stakeholders

Support

Technically and commercially aware individuals

Peer consulting

Bu

sin

ess M

ark

ets

Con

su

mer M

ark

etsInfluence/Risk

Post purchase blame or credit can be shared;companies might be less affected by what other companies are buying

Greater perceived risks;

Individuals get more affected by what other consumers are buying

04/09/2023 MBA, TERI University 3

Participation in market place

Fewer purchasers More number of buyers

More than one person is involved in buying decisions; controlled by their companies

Buying decision

Individual customer; fewer stakeholders

Support

Technically and commercially aware individuals

Peer consulting

Bu

sin

ess M

ark

ets

Con

su

mer M

ark

etsInfluence/Risk

Post purchase blame or credit can be shared;companies might be less affected by what other companies are buying

Greater perceived risks;

Individuals get more affected by what other consumers are buying

04/09/2023 MBA, TERI University 4

Summary

Perspective Business Markets Consumer Markets

Participation in market place

Fewer purchasers Large no. of buyers

Buying decision more than one person is involved in buying decisions

Individual customer

Limited stakeholders

Support Technically and commercially aware individuals

Knowledge levels are high

Look to their peers

Knowledge levels are low

Influence/Risk More widespread Greater individual risk

04/09/2023 MBA, TERI University 5

Market Characteristics

04/09/2023 MBA, TERI University 6

Industry Consumer

Mass Advertising.

Normally focussed on technical media. Not normally TV.

Often suitable and used including TV, Radio and mass circulation print advertising.

Direct Mail. Often very suitable due to small numbers

Sometimes not viable due to high numbers & low value.

Face to face selling by specialists.

Often very suitable for company specialists

Rarely suitable for individual items to end users.

Hospitality Very suitable because of often high business value per decision maker

Not often used

Editorial. Very suitable in targetted print media.

Sometimes suitable.

Publicity. Suitable Suitable

Discounting. Often to reward volume customers.

Discount sales are often used for sales promotion.

Specialist exhibitions and or trade shows.

Often used for high and lower value items.

Mainly suitable for higher value items unless selling consumer wares to retail buyers.

Point of sale displays and communications.

Not often used Extensive use.

04/09/2023 MBA, TERI University 7

Industry Consumer

Direct sales force Often used in industry to sell direct to buyers and specifying engineers.

Used where needed to sell to resellers more than to 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 chains.

Form part of distribution chains.

Commissioned Agents Often used. Sometimes used.

E-Commerce via Internet

Becoming more prevalent to cut out the middle man and reduce stocks.

Becoming more prevalent at retailers, less so for manufacturers because of their narrow ranges.

Multi-level marketing including party plan.

Rarely used. Used for some specialities.

Problem Recognition

Information Search

Evaluation of Alternatives

Purchase Decisions

Post purchase behavior

Problem Recognition

Need description & Product Specification

Supplier Search

Proposal Solicitation

Supplier selection

Order Routine Specification

Performance Review

Stages of buying process

Industry Consumer

Source: Marketing Management: kotler

Culture

Sub-culture

Socialclass

Social

Referencegroups

Family

Rolesand

status

Personal

Age andlife-cycle

OccupationEconomicsituationLifestyle

Personalityand

self-concept

Psychological

MotivationPerceptionLearning

Beliefs andattitudes

Buyer

Factors influencing consumer behavior

Culture

EnvironmentalEconomic, Technological, Political, Competitive

OrganizationalObjectives, Policies, Procedures,

Structure, & Systems

OrganizationalObjectives, Policies, Procedures,

Structure, & Systems

InterpersonalAuthority, Status, Empathy &

Persuasiveness

InterpersonalAuthority, Status, Empathy &

Persuasiveness

IndividualAge, Education, Job Position, Personality &

Risk Attitudes

IndividualAge, Education, Job Position, Personality &

Risk Attitudes

BuyersBuyers

Factors influencing business buyer behavior

THANK YOU!Group AAnandBansuriRashi