• HOME
  • Categories
    • Marketing
    • Strategy
    • Management
    • Branding
    • Small Business
    • Sales & Selling
    • Advertising
    • Market Research
  • Online Marketing
    • Blogging
    • Social Media Marketing
    • Search Engine Optimization
    • Internet Marketing
  • Brands
    • Marketing mix of all Brands
    • SWOT analysis of Brands
    • Marketing Strategy of Brands
    • Brand Competition
    • Print Ads Collection
  • CONSULTING
Marketing91
  • Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • HOME
  • Categories
    • Marketing
    • Strategy
    • Management
    • Branding
    • Small Business
    • Sales & Selling
    • Advertising
    • Market Research
  • Online Marketing
    • Blogging
    • Social Media Marketing
    • Search Engine Optimization
    • Internet Marketing
  • Brands
    • Marketing mix of all Brands
    • SWOT analysis of Brands
    • Marketing Strategy of Brands
    • Brand Competition
    • Print Ads Collection
  • CONSULTING

Home » MARKETING BASICS » Characteristics of Business Market

Characteristics of Business Market

May 2, 2018 By Hitesh Bhasin Tagged With: MARKETING BASICS

Business markets are defined as all organisations that procure products or services that are consequently used in manufacturing other goods and facilitating service for other consumers. Wholesalers and retailers are also considered as business markets since they also deal in the acquisition and sale of goods and services for further selling and renting.

Business markets and consumer markets tend to be similar to some extent. For instance, in both cases, people are involved in the process of evaluating the necessity of goods and products and at the same time carry out different roles in ensuring that they attain satisfaction of such needs. However, it should be noted that some factors define the characteristics of business markets, which also distinguishes it from consumer market and they include the following;

  1. Page Contents

    • Market structure and demand
    • Nature of buying unit
    • Decisions and decision process

    Market structure and demand

Business marketsTypically, there are few but relatively large types of business buyer deals that organisations often engage in that are related to the business market. It should also be noted that these customers are much focused geographically. There are various instances when the business markets had to deal with inelastic demand that is not necessarily influenced by the changes in the price of products or service, especially within a short run.

It should also be noted that demand for the business markets and business products also tends to fluctuate, which only implies that the demand for business market products can change relatively quickly than the demand for consumer goods or services.

  1. Nature of buying unit

This is the other characteristic that distinguishes the difference between consumer markets and business markets. Participants in the business purchase tend to buy more and there are more participants, and the process also tends to be relatively professional. On the other hand, participants in the consumer purchase are often less, and efforts put towards the same is also little. The people involved in consumer purchasing lack the knowledge and experience when comparing them to those who are involved in business buying.

The business market also incorporates a committee of experts that participate in ensuring that all purchasing decisions are collectively arrived at. The organisations involved in the business market also ensure that they train their personnel occasionally in matters to deal with business purchasing hence making it possible for them to make sure that the process is efficient and effective.

  1. Decisions and decision process

Ordinarily, the decisions revolving around the business market are somewhat complex than decisions made by the consumer markets. This is primarily because business market requires an intensive process that involves technical and economic considerations, a considerable amount of money and interactions among different professionals holding different ranks in their respective trades.

Related:   Customer retention

The business purchase process also tend to take longer than the consumer purchase process since fine details have to be put into consideration in ensuring that every piece is accounted for. This explains why the business market tends to appear more formalised than the consumer purchase.

For instance, organisations dealing with business market happen to exert specification of the detailed product, capture the purchase order, carefully identifying suppliers and also formalise approval of the suppliers and payment.

However, it should also be noted with a significant concern that both sellers and buyers depend on each other for their success in the business buying process. The customers in the consumer market are often present at a distance in comparison to the organisations in the enterprise market, which often tend to be carefully present with one another and ensure that the customers provide any help necessary at every given step of the purchasing process.

They are always available in ensuring that all problems are defined and addressed appropriately and supporting all the operations that are within their reach. It should also be noted that they customise their offerings to suit the needs of the clients and create a close rapport for the sake of future businesses. These characteristics explained in this article provide a clear distinction between these two markets.

Related Posts:

  • How to segment a Business Market? Steps in Segmenting a business market.
  • Secondary Market: Examples, Types, Characteristics, Tools, and Players
  • Mass Market - Definition of Mass market and explanation
  • Target market vs Strategic market
  • How to choose a Market segment? 5 approaches to Choosing a market segment.
  • What is Market Abuse? Market Abuse Explained in Detail
  • What is Market Efficiency? Importance Of Market Efficiency
  • Definition of Market Aggregation - What Is Market Aggregation?
Reader Interactions
Reader Interactions
GET DAILY MARKETING UPDATES
About Hitesh Bhasin

I love writing about the latest in marketing & advertising. I am a serial entrepreneur & I created Marketing91 because i wanted my readers to stay ahead in this hectic business world. You can follow me on Facebook. Let's stay in touch :)

Reader Interactions

Comments

  1. hina chaudhary says

    well done …….! but some points related to business market characteristics are missing you should improve it.
    thankyou

    Reply
    • Shiza says

      apko koi Pakistani ya foreign website nh mile the Indian k siwa? Tum punjabies ny to hamen doob k mara ha.

      Reply
  2. Hitesh Bhasin says

    Sure. the website is in updation mode. All these articles were written when i was new to blogging. Now when i look back i laugh at my initial puny efforts. im updating each old post one by one. Glad you liked it though.

    Reply
  3. Abdul Rehman says

    its very impressive knowledge relating to the characteristics of business marketing and some of consumer marketing as well.I think u should discuss more about consumer point of view so in this way it shows the clear difference between consumer as well as business market.
    Thank u

    Reply
  4. Hitesh Bhasin says

    @ Abdul Rehman – Please refer the following link for consumer markets.

    https://www.marketing91.com/difference-between-business-markets-and-consumer-markets/

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar
Follow Marketing91

More than 30,000 Followers

Recent Posts
  • Positive Reinforcement – Definition, Meaning, Examples and Types
  • What is Workplace Bullying and How to Manage It?
  • What are the Characteristics of Quantitative Research?
  • What is Upselling? Difference between Cross-Selling and Upselling
  • Why is Work Life Balance Incredibly Important in Todays world?
  • Severance Pay Definition – Eligibility and Calculations

Footer Widgets
Marketing91

WHO WE ARE

  • About Marketing91
  • Privacy Policy
  • Cookie Policy
  • Contact us
  • Sitemap

LEARN WITH US

  • Course on Market Segmentation
  • Course on Marketing Strategory Models

WE WRITE ON

  • Marketing
  • Small Business
  • Management
  • Internet Marketing
admin@marketing91.com

© 2008-2019 Marketing91 All Rights Reserved