What is Business Marketing?

Business
Products

 Are used to manufacture other products

 Become part of another product
 Aid the normal operations of an
organization
 Are acquired for resale without change in
form
Business Markets
producer
markets

reseller
markets

government
markets

institutional
markets
Demand for Business Products

derived inelastic joint fluctuating

demand demand demand demand
 Demand for Business Products
Demand involving the use of two or more items in combination to
produce a product

derived inelastic joint fluctuating

demand demand demand demand
 Types of Business Purchases

straight rebuy modified rebuy new task

original product is re- changes are desired product is purchased

ordered in the original for the first time
product

More Involvement
 Business vs. Consumer Markets

Characteristic Business (B2B) Consumer (B2C)

Demand Organizational Individual
Volume Larger Smaller
# of Customers Fewer Many
Location Concentrated Dispersed
Promotion Personal Selling Advertising
Buying Influence Multiple Single
Negotiations More Complex Simpler