Elaborate on the three highlighted differences of consumer and business markets below. Provide your justification why that is the case for each of the markets. Characteristic Business Marketing Consumer Marketing Market Competition Oligopolistic Monopolistic Structure Demand Derived Direct Demand levels More volatile Less volatile Reverse elasticity Frequent Infrequent Total market size Larger Smaller Size of buying unit Group Individual Market geography Concentrated Diffuse Marketing Market segmentation Emporographics Demographics Philosophy Investment requirements Strategic Tactical Market perspective Global Regional/national Tactical marketing emphasis Profit performance Market share Innovation Technology-push Demand-pull Buyer/seller interaction Relationship Transactional Reciprocity Frequent Rare Key accounts Important Nonexistent Customer education Strong Weak Buyer Behavior Customer/prospect mix Small Large Order size and frequency Large, infrequent Small, frequent Purchasing motives and skills Rational, professional Emotional, self-gratifying Contractual penalties Common Never Buying power Strong Weak Vendor loyalty Strong Weak Purchase involvement Greater Smaller Purchasing Decisions Decision-making process Complex, lengthy, observable Simple, short, non observable Purchase risk Very high Low Product/Service Mix Product Life cycle Shorter Longer Product specification Customized Standardized Branding Corporate family Individual product Purchase timing Requirement planning Immediate use Degree of fabrication Value-adding stages required. Mostly finished goods Type of packaging Services Protective Much more, pre-and post-transactional Promotional; Less, point-of-purchase Equipment compatibility Good Poor Consistency of quality Critical Not vital Industrial design Less frequent More frequent Systems selling More frequent Less frequent Promotion Promotional emphasis Personal selling Mass advertising Promotional objectives Preparing for sales call Positioning product and firm Promotional themes Rational, factual Fanciful, imaginative Role of salesperson Problem solving Persuasion Sales promotion tools Specification sheets, catalogs, direct mail, trade shows Coupons, samples, point-of-purchase displays Distribution Mix Channel length Short, direct Long, indirect Channel complexity Complex Simple Product knowledge Strong Weak Channel coverage Direct, exclusive Intensive, selective Delivery reliability Crucial Not critical Price Competitive bidding Common Rare Price negotiation Common Rare Leasing Common Rare Product life cycle costs and benefits Important Usually ignored Discount structures Complex Straightforward Promotional pricing Seldom used Frequently used

Question

Elaborate on the three highlighted differences of consumer and business markets below. Provide your justification why that is the case for each of the markets.

	Characteristic	Business Marketing	Consumer Marketing
Market	Competition	Oligopolistic	Monopolistic
Structure	Demand	Derived	Direct
	Demand levels	More volatile	Less volatile
	Reverse elasticity	Frequent	Infrequent
	Total market size	Larger	Smaller
	Size of buying unit	Group	Individual
	Market geography	Concentrated	Diffuse
Marketing	Market segmentation	Emporographics	Demographics
Philosophy	Investment requirements	Strategic	Tactical
	Market perspective	Global	Regional/national
	Tactical marketing emphasis	Profit performance	Market share
	Innovation	Technology-push	Demand-pull
	Buyer/seller interaction	Relationship	Transactional
	Reciprocity	Frequent	Rare
	Key accounts	Important	Nonexistent
	Customer education	Strong	Weak
Buyer Behavior	Customer/prospect mix	Small	Large
	Order size and frequency	Large, infrequent	Small, frequent
	Purchasing motives and skills	Rational, professional	Emotional, self-gratifying
	Contractual penalties	Common	Never
	Buying power	Strong	Weak
	Vendor loyalty	Strong	Weak
	Purchase involvement	Greater	Smaller
Purchasing Decisions	Decision-making process	Complex, lengthy, observable	Simple, short, non observable
	Purchase risk	Very high	Low
Product/Service Mix	Product Life cycle	Shorter	Longer
	Product specification	Customized	Standardized
	Branding	Corporate family	Individual product
	Purchase timing	Requirement planning	Immediate use
	Degree of fabrication	Value-adding stages required.	Mostly finished goods
	Type of packaging Services	Protective Much more, pre-and post-transactional	Promotional; Less, point-of-purchase
	Equipment compatibility	Good	Poor
	Consistency of quality	Critical	Not vital
	Industrial design	Less frequent	More frequent
	Systems selling	More frequent	Less frequent
Promotion	Promotional emphasis	Personal selling	Mass advertising
	Promotional objectives	Preparing for sales call	Positioning product and firm
	Promotional themes	Rational, factual	Fanciful, imaginative
	Role of salesperson	Problem solving	Persuasion
	Sales promotion tools	Specification sheets, catalogs, direct mail, trade shows	Coupons, samples, point-of-purchase displays
Distribution Mix	Channel length	Short, direct	Long, indirect
	Channel complexity	Complex	Simple
	Product knowledge	Strong	Weak
	Channel coverage	Direct, exclusive	Intensive, selective
	Delivery reliability	Crucial	Not critical
Price	Competitive bidding	Common	Rare
	Price negotiation	Common	Rare
	Leasing	Common	Rare
	Product life cycle costs and benefits	Important	Usually ignored
	Discount structures	Complex	Straightforward
	Promotional pricing	Seldom used	Frequently used