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Essay / The industrial market: business-to-business markets
IntroductionAs consumers, we are familiar with the consumer market and the channels through which they operate. But the question that needs to be asked is whether business-to-business markets are different from the consumer market? Does the approach to consumer markets differ in any way? Business-to-business markets operate through many more channels than the consumer market, and ultimately, consumer demand is crucial for business-to-business markets to succeed. The products would start as raw materials and then the extraction process would begin. There are a number of channels that might need to exist before the consumer can choose the product off the shelf. Packaging and distribution are important factors in this process. This whole process is called the derived demand chain, everything is done based on the demand for the product. Companies that operate in business-to-business markets purchase the materials with the aim of adding value, so that they can ultimately move the product through the chain until the finished product reaches the general consumer. Marketing is based on the profitable satisfaction of needs, and both markets depend on the principle of providing the right product to the right people at the right price. While there is evidence to suggest that there are some similarities, it would be wise to also highlight the factors that differentiate the two markets. Business-to-business marketing focuses on meeting the needs of other businesses, with demand for products produced by those businesses likely to be driven by consumers. Factors that need to be further examined within these two markets include the importance of rel. ..... middle of paper ...... EditionLarson, Andrea, (1992). “Network dyads in an entrepreneurial environment: a study of the governance of exchange relations”. Administrative Science Quarterly, 37:76-104Michell, P., King, J. and Reast, JB (2001). Values linked to industrial products. Industrial Marketing Management, 30, 415 – 425. Rosenbroijer, C.J. (2001). Industrial brand management: a retailer's perspective in the UK fine paper industry. Journal of Product and Brand Management, 10, 7 – 24 Toffler, A. (1980), The Third Wave, Bantam, New York, NY. Weitz, Barton A. and Sandy D. Jap (1995), "Relationship marketing and marketing channels distribution", Journal of the Academy of Marketing Sciences, 23 (4), 305-20 Wind, Y. (2006). Blurring the waters: should we rethink industrial marketing? Journal of Commercial and Industrial Marketing, 21 (7): 474-81.