Chapter 9

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Management (MGM)
Ingrid L.Stefanovic

INTRODUCTION The consumer market consists of individuals who purchase goods and services for personal use The Business-to-Business market consists of firms that produce or acquire goods and services to be used, directly or indirectly, in the production of other goods and services or to be resold o Sometimes called the industrial market o Marketing planning and the resulting marketing mix is different from those of consumer marketing DISTINCTIVE FEATURES OF THE BUSINESS MARKET Geographic Market Concentration Market for business goods is concentrated geographically o Largest markets are Ontario and Quebec Small Number of Buyers The concentration of the business market greatly influences the strategy used in serving this market Advertising plays a much smaller role in this market Business marketers can make more profitable use of a sales force to provide regular personal contacts with a small, geographically concentrated market Complex Purchase Decision Process The business decision process is generally more complex Magnitude is greater, more people are involved, and organizations set up more formal procedures that have to be met TYPES OF BUSINESS MARKETS Business-to-business market can be divided into 3 categories o Producers are those who transform goods and services through production into other goods and services in the production process, some products aid in producing another product or service, others are physically used up in the production of a product, and still others are routinely used in the day-to-day operations of a firm. o Trade Industries are organizations(retailerswholesalers) that purchase for resale to others goods that are marketed towards consumers o Governments at the federal, provincial and local level represent the final category of business purchasers Provide some form of public benefits, by having government purchases SCOPE OF THE BUSINESS MARKET The industrial market accounts for some 50 percent of purchases of manufactured goods in Canada
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