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Business Marketing

major source of cyclical instability and that the observed Long, John B., Jr., and Plosser, Charles I. (1983). Real business
sympathetic movements between monetary variables and cycles. Journal of Political Economy, 91(1) 39–69.
the level of economic activity result from a flow of causa- Lucas, Robert E. (1981). Studies in business cycle theory. Cam-
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tors cause the monetary factors to change, not vice versa. Lucas, Robert E., and Sargent, Thomas J. (Eds.) (1981). Ratio-
In this way they are somewhat like Wicksell. nal expectations and econometric practice. Minneapolis: Uni-
versity of Minnesota Press.
Mankiw, N. Gregory (1989). Real business cycles: A new Keyne-
BUSINESS CYCLE INDICATORS sian perspective. The Journal of Economic Perspectives, 3(3),
Changes in the magnitudes of certain economic series 79–90.
provide clues to the direction of changes in the cyclical Mitchell, Wesley Clair (1952). The economic scientist. New York:
behavior of economy. These series are identified, meas- National Bureau of Economic Research.
ured, and used for forecasting the turning points of the Nordhaus, William D. (1989). Alternative approaches to the
political business cycle. Brookings Papers on Economic Activity,
business cycle. Called economic indictors, they are
2, 1–50.
divided into three groups—leading, lagging, and roughly
Rotemberg, Julio J., and Woodford, Michael (1996). Real-
coincidental. The leading indicators are those economic
business-cycle models and the forecastable movements in out-
series that change direction in advance of the business put, hours, and consumption. The American Economic
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overall economy has moved, while coincident indicators Schumpeter, Joseph (1939). Business cycles. New York: McGraw-
move in tandem with the aggregate economic activity. Hill.
Basic economic indicators consist of 10 leading, 7 lagging, Schumpeter, Joseph (1961). The theory of economic development.
and 4 coincident series. New York: Oxford University Press.
In order to smooth out the volatility of individual Wicksell, Knut (1901). Lectures on political economy. New York:
series in each group and to provide a single measure to Augustus M. Kelly.
represent the entire group, a composite index for each Willet, Thomas D. (Ed.) (1988). Political business cycles: The
group (composite indicator) is constructed. The measures political economy of money, inflation, and unemployment.
Durham, NC: Duke University Press.
of basic indicators and the composites are calculated and
Zarnowitz, Victor (1985). Recent work on business cycles in his-
published by the Conference Board, a not-for-profit
torical perspective: A review of theories and evidence. Journal
organization.
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SEE ALSO Economics Zarnowitz, Victor (1996). Business cycles, theory, history, indica-
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BIBLIOGRAPHY
Achuthan, Lakshman, and Banerji, Anirvan (2004). Beating the Anand Shetty
business cycle. New York: Currency Doubleday. David A. Bowers
Blanchard, Olivier (2000). What do we know about macroeco-
nomics that Fisher and Wicksell did not? (National Bureau of
Economic Research Working Paper No. W7550). New York:
National Bureau of Economic Research.
Burns, Arthur, and Mitchell, Wesley C. (1946). Measuring busi- BUSINESS MARKETING
ness cycles. New York: National Bureau of Economic Research.
Business marketing is the marketing of products to organ-
Clark, J. M. (1917). Business acceleration and the law of izations for the direct use of the product in the production
demand: A technical factor in economic cycles. Journal of
Political Economy, 25, 217–235. of another product, for use in the general daily operations
of the organization, or for reselling the product to other
Conference Board. (2001). Business cycle indicators handbook.
New York: Author. businesses or the final consumer. Marketing goods and
services to businesses and organizations, while sharing
Hicks, J. R. (1958). The trade cycle. London: Oxford University
Press. some similarities with consumer markets, is different in
many ways. The nature and characteristics of the business
King, Robert, and Plosser, Charles (1984). Money, credit and
prices in a real business cycle. American Economic Review, market, the types of consumers, the different buying situ-
ations that occur in businesses and organizations, who is
74(3), 363–380.
involved in the decision-making process and the business-
King, Robert, and Rebelo, Sergio (2000). Resuscitating real busi-
to-business buying process all differ significantly from the
ness cycles (National Bureau of Economic Research Working
Paper No. W7534). New York: National Bureau of Economic consumer market. These differences often make the nor-
Research. mal purchasing process more involved and complex.

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