Market And Business

The business buying process is more formalized. Businesses usually follow the complete chain of command and the protocol of their organization before making the final decision. Having said before that it’s a long term relationship, that’s why both businesses make sure that all sides are covered.

Business Markets – Definition, Characteristics, Types & Examples

Business markets have been expanding and people are investing more money and resource in the business market than the consumer markets. For example, Tesla is planning to invest US$ 5 billion in its new electric car and battery, “Gigafactory” in Europe. After that various suppliers will engage to provide parts and accessories, and then Tesla will be able to offer the finished product to consumers.
Now, the question is what the business market is.
Table of Contents

What are Business Markets?

The business market is the process of selling your product and services to other businesses, where those products and services will either be used as a raw material for the manufacturing of other products. Or those businesses buy the products or services and resell them.
We can also say that the business market is where one business sells products or services to the other businesses; it is either to resell or reuse those products or services.
Also Read: What is a Market? Definition and Types Explained

Consumer Markets Vs Business Markets

Consumer Market is where businesses sell their products and services to the tail-end consumers. As compared to the buyer market, the consumer market has many sellers and the selling market is very competitive.
Business buyers would buy the products or services to produce some new products for sales. The business won’t buy the next shipment until the sale of already prepared products.
Unlike the temporary relation of the consumer market, the business market involves a long term interaction of buyer and seller. That’s what makes the relationship very stable and volatile at the same time. It’s good if it keeps working well.
The consumer market is very precise about the demography of its targeted audience like age, gender, beliefs, social status, attitude, and behavior. All of those factors vary in terms of geographical regions, it’s because people in different regions have different preferences, likes, and dislikes.