MKTG 2201 Chapter Notes - Chapter 6: Crowdsourcing, Outsourcing, North American Industry Classification System
22 Mar 2016
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Business-to-business markets include manufacturers, wholesalers, retailers, and a variety of other organizations such as hospitals, universities and governmental agencies. Factors that make a difference in business markets. Multiple buyers: more needs need to be satisfied, more criteria may have to be satisfied. Number of customers: fewer number of customers(firms) to sell to. Size of purchases: higher quantity of goods purchased, more expensive and complex products (manufacturing equipment) Geographic concentration: business tend to be concentrated in one area of a country. B2b marketers have to focus their sale forces in these areas. Demand for b2b products is derived, inelastic, fluctuating and joint. Derived demand a business"s demand for goods and services come either directly or indirectly from consumers demand for what it produces. Inelastic demand it doesn"t matter if the price of a b2b product goes up or down-business customer still buy the same quantity.
