On the basis of market structure and demand:
1. Fewer but larger buyers: The business marketer normally deals with fewer but larger buyers than the consumers market does. For example, the tire company’s fate/market share depends upon getting contracts from a few major automakers and few large buyers of aircraft engines.
2. Demand is derived: The demand for business goods is ultimately derived from the demand for consumer goods. For example, the US General Motors alone purchases 7% of domestic steel which indicates that the demand of steel is derived from the ultimate car buyers.
3. Inelastic demand: The total demand for many business goods and services is inelastic that is not much affected by price changes especially in the short run because producers cannot make quick changes in production method. For example- a drop in the price of sugar cane will not cause sugar manufacturers to buy much more sugar cane unless it results in lower sugar prices that in turn will increase consumer demand for sugar.
4. Fluctuating demand: The demand for business goods tends to be more volatile/unstable than that of consumer goods. The demand of business markets fluctuate more and more quickly. For example, Sometimes a rise of only 10% in consumer demand as much as 200% rise in business demand for products in the next period.
