Business and consumer markets are significantly different markets and it is crucial for businesses to become familiar with both markets to design marketing strategies. Business market however is a larger market with presence of larger buyers and geographically dispersed customers. The demand in this market is not affected by the change in price, which means the demand remains inelastic. There is a highly professional and detail-oriented buying process, as buying units are all professionals. On the other hand, products and services in consumer market are sold to final consumers based on their likes and dislikes. In order to understand a customer demand, businesses have to understand a series of characteristics, from demographic, behavior, geographic to psychographic. The consumer products demand is elastic, which means it changes with any change in price. Quality, attractive packing, branding and promotion are the key attributes that businesses need to focus on to increase sales in cons...
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