Introduction
As consumers, we are quite familiar with the consumer market and the channels that they operate under. Although the question that needs to be asked is whether business-to-business markets distinguishes itself from the consumer market? Does the approach to consumer markets differ in any way?
Business-to-business markets operate under considerably more channels than the consumer market, ultimately the demand of the consumer is crucial if business-to-business markets were to be successful. Products would start out as raw materials and then the process of extraction would begin, there are a number of channels that may need to exist before the consumer could pick the product off the shelf. The packaging and distribution are important factors in this process. This whole process is called the chain of derived demand, everything is pulled through as a result of the demand for the product.
Businesses that operate within the business-to-business markets purchase the materials with the objective of adding value, so they can ultimately move the product down the chain until the finished product reaches the general consumer. Marketing is reliant on the profitable satisfaction of needs, and both markets depend on the principle of delivering the right product to the right people, and at a right price.
Although there is evidence to suggest that there exist some similarities, it would be wise to also point out the factors that differentiate the two markets. Business-to-business marketing concentrates on meeting the needs of other businesses, the demand for the products made by these businesses is likely to be driven by consumers.
The factors that need to be further examined within both these markets include the importance of rel...
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both B2B and B2C is that it gives to both business models a more effective control over theri customer
attitude and they rely on advertising to help bring the customer in and they both have their
4) How might these two market research sources help a company develop a marketing mix?
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In business-to-business companies, the company is seeking out a smaller, focused target market. B2B companies usually offer something to other businesses that help another company to increase productivity or offer another benefit that the company will need. Therefore, the company must target a smaller group of companies that will have a demand for this product. The target market can increase after some level of success has been achieved. However, because of the focus on relationships throughout the marketing strategy, smaller target markets are easier to approach and to continue building and nurturing that business relationship.
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.
American Marketing Association Board of Directors approved the definition of marketing in July 2013 as ‘Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.’, Ama.org (2015). With the growth in economy, competition and market fragmentation, the marketing became more sophisticated. The large heterogeneous markets were divided into smaller segments with similar needs, wants and buying behaviour, Kotler,P., Armstrong,G. (2014).
-Transaction buyers were reached via advertisement, catalogues and direct marketing. On the other hand, the rest of the industry focused only on building recognizable brands using advertising.
Profit Marketing objectives of marketing are usually to let potential clients in the target market know about the product or service and how it can benefit them, with a view to selling it in exchange for money. The corporation keeps the money, and the customer enjoys the product or service that they bought. Profit marketing also focuses on developing new markets for existing products or identifying markets for new product lines. The major difference between the marketing of the two types of corporations is the fulfillment of the customer need. The for profit marketing customer has a need that he fulfills by the purchase of the goods or services and may measure sales, the number of customers, or...
With the rise of the economy, consumers have become more and more knowledgeable on selecting their favourable product as a result the organization cannot focus on what it sells but on the side focus on what the customer wants to buy.
"Marketing consists of individual and organizational activities that facilitate and expedite satisfying exchange relationships in a dynamic environment through the creation, distribution, promotion and pricing of goods, services and ideas." (Dibb et al 2001, p1)
Business purpose in the marketplace is to out compete competitors and make money. With how competitive the market place is, a business have to look for advant...
For a marketing orientated business, the findings from any research will be put to use primarily to aid the business in satisfying the needs and wants of its customers; this type of business has become more popular since 1970, where prior to this business’ were production orientated (until the 1950’s) where the business was concerned with improving its distribution methods, and product orientated (until the 1960’s) where the business’ main concern was the product rather than the satisfaction of the customer. The idea of a marketing orientated business has been explored by Fahy and Jobber (2012) who concurred that a market orientated business is one that considers its customers and the external environment to be an intricate part of the business; This type of business will explore the different aspects of the external environment, and take from its observations ways in which it can continue to trade in an effective, profitable way. A marketing orientated business will also use its findings to help it take advantage of any opportunities in a market and to lessen any threats that could be...
Product differentiation can affect the demand for a product in many ways it distinguishes a product or service to make it more attractive to a specific market and caters to people of specific bracket. Differentiation of a product is done in order to show the uniqueness of a particular product making it more attractive with a sense of value to a firm. It is also one of the defining traits of a monopolistic competitive market showing that there is not a significant amount of competition. By doing so it reduces direct competition because of its differences it makes it less attractive for market competition (Boundless, 2015). It also improves the availability for individuals rather that for a particular market. Because of its uniqueness one is able to draw more from a single dweller than from a particular