Business markets have a derived demand – a demand in them exists because of demand in the consumer market. An example would be the Indian government wishing to purchase equipment for a nuclear power plant. The underlying consumer demand that has triggered this is that people of India are consuming more electricity (by using more household devices such as washing machines and computers). Business markets do not exist in isolation.
A single consumer market demand can give rise to hundreds of business market demands. The demand for cars in India creates demands for castings, forgings, plastic components, steel and tires. In turn, this creates demands for casting sand, forging machines, mining materials, polymers, rubber. Each of these growing demands has triggered more