Scribd Logo
Upload

Welcome to Scribd!

  • 186 views

    Admas University Department of Marketing Management Business Marketing Individual Assignment 3 Name Philipose Daniel

    Uploaded by

    Philipose DaNiel
    The document discusses the key differences between business and consumer markets. It summarizes that business markets deal with smaller numbers of customers face-to-face, have higher R&D investments, and innovation focuses on technological breakthroughs. Consumer markets have larger, more distant customer bases, prioritize marketing activities, and innovation emphasizes incremental style changes. The major differences covered are related to customer relations, investments, innovation focus, product characteristics, and price sensitivity between business and consumer markets.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd

    Admas University Department of Marketing Management Business Marketing Individual Assignment 3 Name Philipose Daniel

    Uploaded by

    Philipose DaNiel
    186 views4 pages
    The document discusses the key differences between business and consumer markets. It summarizes that business markets deal with smaller numbers of customers face-to-face, have higher R&D investments, and innovation focuses on technological breakthroughs. Consumer markets have larger, more distant customer bases, prioritize marketing activities, and innovation emphasizes incremental style changes. The major differences covered are related to customer relations, investments, innovation focus, product characteristics, and price sensitivity between business and consumer markets.

    Original Title

    p 3

    Copyright

    © © All Rights Reserved

    Available Formats

    DOC, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses the key differences between business and consumer markets. It summarizes that business markets deal with smaller numbers of customers face-to-face, have higher R&D investments, and innovation focuses on technological breakthroughs. Consumer markets have larger, more distant customer bases, prioritize marketing activities, and innovation emphasizes incremental style changes. The major differences covered are related to customer relations, investments, innovation focus, product characteristics, and price sensitivity between business and consumer markets.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    186 views4 pages

    Admas University Department of Marketing Management Business Marketing Individual Assignment 3 Name Philipose Daniel

    Uploaded by

    Philipose DaNiel
    The document discusses the key differences between business and consumer markets. It summarizes that business markets deal with smaller numbers of customers face-to-face, have higher R&D investments, and innovation focuses on technological breakthroughs. Consumer markets have larger, more distant customer bases, prioritize marketing activities, and innovation emphasizes incremental style changes. The major differences covered are related to customer relations, investments, innovation focus, product characteristics, and price sensitivity between business and consumer markets.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 4

    Admas University

    Department of Marketing Management

    Business marketing

    Individual Assignment 3

    Name Philipose Daniel


    ID No 0553

    Section M1
    1, Discuss briefly about the implication of derived demand in terms of:

    Derived Demand?

    Derived demand is an economic term describing the demand for a good/service resulting from the
    demand for an intermediate or related good/ service. It is a demand for some physical or intangible
    thing where a market exists for both related goods and services in question. The derived demand can
    have a significant impact on the derived good's market price .

    Price and profit impact

    the impact of price and determine a best price, we need to estimate the relationship between the price
    charged and the maximum unit quantity that could be sold. This relationship is called a demand
    curve.Demand curves generally follow a pattern called the law of demand , whereby increases in price
    result in decreases in the maximum quantity that can be sold.

    promotion

    promotion to increase derived demand by stimulating their customers to specify the marketer’s
    specific material, component, or service- thus pulling the product through the distribution
    channel from a lower level. Telescopic Marketing

    Telescoping is simply the process of creating interactive advertising prompts on your TV screen.
    These ads overlay a corresponding commercial.

    Push Promotion Strategy

    A push promotional strategy, is a marketing strategy that sees companies take its products to its
    consumers. The goal of this strategy is to get the product directly in front of the customers, in the
    form of trade shows and point of sale displays.

    Distribution

    The distribution chain characterized by dramatically wide swings in inventories and expectation
    inventory policies, by technological developments, or by changes in economic conditions. It is
    exacerbated at times by the speculative purchasing of organizational buyers.

    The acceleration effect


    It states change in direct demand at the customer level that if appetite for consumer goods
    increases, demand for equipment and other investments necessary to make these goods will grow even
    more.

    The whiplash effect

    The bullwhip effect is a distribution channel phenomenon in which forecasts yield supply chain
    inefficiencies. It refers to increasing swings in inventory in response to shifts in customer demand as one
    moves further up the supply chain .

    2, Discuss briefly about the major difference of business and consumer market with respect to :-

    Business market Consumer market

    Business marketers are more likely to have a Consumer marketers’ relations are distanced by
    sizeable share of highly segmented, smaller, long, indirect channels of distribution and are
    specialized markets, resulting in more restricted reduced to a mass of indifferent transactions.
    sales volumes

    - Business marketers deal with smaller numberof Consumer marketers’ investments are directed
    customers, frequently on a face-to-face basis. more toward marketing activities like researching
    their huge customer base and promoting to mass
    markets

    - Innovation in business markets is characterized - consumer markets innovation involves greater


    by R&D inspired technological push and radical- emphasis on style and incremental changes to
    breakthroughs that may revolutionize the entire products that can justify model changes.
    industry.

    - Business markets have higher investments in - consumer marketers seek market share and sales
    capital equipment’s and R&D. volumes.

    Market structure
    Market structure refers to the characteristics used to describe the group of organizations that buy
    the products and services of business marketer. These factors include competition, demand, price
    elasticity, market and buyer size, and location of the market.

    Market philosophy

    The concept or philosophies of business marketing differ substantially from those of consumer
    marketing. One basic difference is that consumer goods are usually classified according to how
    they are purchased and industrial/ business goods are categorized according to their use of
    buying situation (task) or degree of customization.

    Product / service mix

    The product/ service mix is an area of marketing differences between consumer and business
    markets. Business products have shorter product lifecycle, are less likely to be branded, and are
    precisely specified by buyers by a future use. Packaging is mainly for protection, and services
    are associated with the product are extensive.

    Price

    A costs of represent a large proportion of a business’s total costs and have a direct impact on
    profit, organizational buyers use every means to achieve better supply prices. Consumers do not
    engage in such meticulous analysis and generally tend to be less price sensitive buyers.

    You might also like