It requires a major commitment by management to customer-oriented planning, research, implementation, and control. The overall objective of using a market segmentation strategy is to improve your company's competitive position and better serve the needs of your customers. Some specific objectives may include increased sales, improves market share, and enhanced image. The authors, John A. Quelch and David Kenny do confess the "lure" of product line extensions. Line extensions come closer to meeting the needs of smaller and smaller market groups.
For example, business to business typically target business owners, managers and decision makers. This could come in the form of training, consulting or actual products. The marketing plan would vary based on the product or service sold; however, the goal of the marketing would be to increase efficiency, productivity and overall profitability. Often, B2B organizations work diligently to build a relationship and report with clients as part of their marketing strategy. This relationship can often be the deciding factor when partnerships are made.
Efficient Logistics helps marketing to satisfy customers. Some argument claim that logistics is a considerable cost of business because it increase the prime cost and price that may decrease the demand, which may decrease the overall profit. However, logistics can have a positive effect on satisfying customers and achieving marketing goal. Because efficient logistics among manufacturers, retailers and customers can reduce delivery time and provide customers better purchase experience especially in e-business, which is useful to built customer loyalty and satisfy customers’ needs (Lacoma [no date]). In addition, according to CSCMP’s definition, logistics includes “control the efficient and effective forward and reverse flow and storage of goods,”
A business can have more than one aim but it is sensible for them not to have too many so they can focus on the aims which are most appropriate to the main purpose of their business. Business Objectives Business objectives are more detailed goals than business aims, they are targets which get set to accomplish the business aims. Generally, business objectives are easier to achieve than business aims as they are broken down into smaller and easier steps. The objectives of a privately owned business would usually be to increase sales, to increase the number of customers or to reduce costs so that more customers are interested in their business. The objectives of a public sector business would usually be to meet customer targets (an example of this would be to reduce waiting times or to employ more staff) or to keep costs low.
Differences in B2B Marketing vs B2C In the following paper differences in marketing techniques that focus on B2B customers as opposed to marketing to B2C customers will be examined. The different goals and approaches used in marketing to these different business types will also be examined. In the Business to Business (B2B) marketing as well as Business to Consumer (B2C) marketing, many of the same techniques and methods of marketing are utilized. For example internet advertising, television, mailings, hosted events, print media and word of mouth are some of the popular methods of marketing that will be utilized regardless of rather the end customer is a business or consumer. What will be different is the message that is contained in theses forms of advertising not the methods of delivering the advertising.
Therefore high brand loyalty in the expansion of sale’s channels more smoothly, and easier access to more favorable terms of trade. Fourthly, brand loyalty will reduce competitive pressure. Recently, market competition is becoming brand competition. When faced with the same competition, the brand that has high brand loyalty, their consumer change the brand’s speed is slow, so the companies have more time to develop new products, and improve communication strategies to deal with the competition of other
What sets them apart from other retailers? And what technologies are they using that allows their business model to be successful? These questions and more will be answered as we take a look at Wal-Mart’s supply chain strategy. Wal-Mart’s business model might appear to be only focused on reducing costs and improving efficiencies, and the customer isn’t as important to the company. It is actually quite the opposite, Wal-Mart’s supply chain is very customer focused, which is what gives them an advantage over their competitors.
B2C and B2B Marketing Comparison Marketing ultimately depends on who you are delivering your message to. With Business to Business (B2B), an organization has to know the businesses needs, its current situation, competitors, trends, technology and costs. Business to Commerce (B2C) is also about knowing who you're selling to. You have to know their wants and needs, your competition, distribution, supply chains and costs. Often, B2B sites are more informational and technical.
The following table summarizes the differences between B2B marketing and B2C marketing. Your marketing plan needs to take into account the differences and ensure you are developing the right types of activities for your particular market. B2B • Relationship driven • Maximize the value of the relationship • Small, focused target market • Multi-step buying process, longer sales cycle • Brand identity created on personal relationship • Educational and awareness building activities • Rational buying decision based on business value B2C • Product driven • Maximize the value of the transaction • Large target market • Single step buying process, shorter sales cycle • Brand identity created through repetition and imagery • Merchandising and point of purchase activities • Emotional buying decision based on status, desire, or price Businesses that Sell to Consumers The ultimate goal of B2C marketing is to convert shoppers into buyers as aggressively and consistently as possible. B2C companies employ more merchandising activities like coupons, displays, store fronts (both real and Internet) and offers to entice the target market to buy. B2C marketing campaigns are concerned with the transaction, are shorter in duration and need to capture the customer’s interest immediately.
These sensory organs are: a. Tongue for tastes & tasting b. Ears for sounds & hearing c. Skin for textures, touch & feeling d. Eyes for sights & seeing e. Nose for smells & smelling The perception we have of a business or service can affect our buying behavior. Businesses spend a lot of money to ensure that consumers have a good perception of their business and make sure their product stand out from the crowd. When bringing a new yet risky product on the market a company can provide a lot of information along with reviews and a free trial, by doing this it decreases the risk of a bad perception. For example when... ... middle of paper ... ...cts is becoming easier since it is no longer a niche market.