Characteristics of Business Market

Business market is formed by individual market, resale market and government. In large business market every businessman sell their produced goods to the other businessmen. The goods are provided to the ultimate consumer through dealer, wholesaler, retailer etc. The characteristics of business market are discussed below:
• MARKET STRUCTURE AND DEMAND: In business market, marketers are few but transaction is large amount. The characteristics which under market structure and demand are discussed below:
• Fewer but larger buyer: In business market, the buyers are few but the amount of purchase is large. Industrial organizations are needed to large amount of goods for large production.
• Geographically concentrated: Business market is concentrated geographically, that means business market in established in a certain area.
• Derived Demand: Derived demand is created from the final consumer demand. If the need of consumable goods increase or decrease then the industrial market increase or decrease.
• Inelastic demand: Demand of many business market is more inelastic. The demand is not affect as much as short run by price changes.
• Fluctuating demand: Demand in business markets fluctuates more and more quickly. If the need of consumable goods little increase then the need of industrial goods more increase.
NATURE OF BUYING UNIT: Business purchase is more complex that consumer purchase and the buyer have more professional effort. Sometimes this purchase is implemented by appointing trained up purchase agent.
TYPES OF DECISION AND THE DECISION PROCESS: Business marketer have to face more complex buying decision than the consumer marketer. Because a large amount of money is transacted for purchasing goods, which consider the monetary matter. In this buying process many people of the organization are engaged. Business buyer takes more time to take buying decision for complexity.
Above these are the characteristics of business.