What do you see as the major differences between business marketing and consumer marketing? Which of these differences do you believe are the most important? Support your position with reference to an example of a company chosen from one of the following industries:
Although business markets and consumer markets share common values and theories, they differ in the way that they function in their respective markets. Organisations need to ensure they understand what makes up a consumer and business market as well as the reasoning behind the purchases of goods and services. Your typical business market sees transactions completed amongst different businesses, i.e. a wholesaler to a retailer, whereas, in a consumer market, a good or service is generally bought for personal use (Hutt Et al, 2010, pg 28). Important also is having a strong brand whether your business serves in a B2C or B2B market. A strong brand in a consumer market helps you keep customers loyal, along with offering higher prices if your product or service is perceived as superior to others, however in business markets a strong brand generally influences rather than guaranteeing a purchase.
Nature of their markets – in business marketing, the customers are genrally organisations, i.e. commercial enterprises, governments and institutions, whereas in consumer marketing the customers are predominantly consumers rather than businesses (Chew 2010);
Buyer-seller relationships – depending on market conditions and the characteristics of the purchase situation, buyers and sellers must mould their relationships respectively. The business marketer needs to understand that various customers prefer transactional relationships or others rather a collaborative relationship – this is where relationship marketing strategies are developed in order to keep the connection between buyer and seller strong. The sales process in business marketing is generally based on building trust and relationships, whereas...
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