Question

Please mention 10 (ten) differences in nature, function and characteristics between Consumer & Business Markets (bullet points).

Minimum Requirement : 250 Words

Answer 1

1. Many luxury goods, such as television facilities, household electronics or holiday travel, are disposable things that individuals may desire but may not actually require. The purchasing behaviour of customers is based on perceived qualities, such as appearance, design or approval by peers. Emotional variables play a significant role in the purchasing choices of customers. Consumer marketing therefore focuses on enhancing discretionary purchasing behaviour to create demand by compelling advertising and media expenditure. Companies, on the other hand, are typically prepared to acquire a solution to a need, goods that are needed for everyday activities, or to address a particular business issue. They have a pre-existing need. Characteristics of product success are much more relevant than the product 's image. Company consumers are more task-oriented and less sentimental. It's just a matter of identifying the supplier who can better meet the need.

2. Company advertisers typically offer considerably less than most business markets to broader vertical markets. B2B advertisers may target just a few hundred prospects, but there may be millions in consumer markets. Because of the smaller scale, all customers within a single company segment may also be recognised and profiled and addressed through personalised marketing messages and in-person sales touch.

3. Fewer, more personal and longer-term client partnerships are the priority of company marketers. Sales among fewer classes of investors with exponentially higher lifetime prices require considerably higher total dollar sums. The bulk of the sales of a B2B business will comfortably be compensated for by a few big companies. Because of the relatively higher purchase volumes and lifetime prices, a larger marketing cost per contact can be accommodated by B2B strategies.

4. The partnership also terminates in customer marketing with a remote purchase made by a store. Rarely should the supplier make intimate contact with the customer. The buyer-seller relationship in company ads is inverted. The provider meets the customer in person in most situations and maintains a genuine one-to-one relationship over an prolonged period of time with the client.

5. In consumer markets, a physical commodity is of utmost value. The purchasing reaches beyond the commodity in B2B markets and comprises a range of commercial, technological and personal relationships between buyer and seller.Although the quality of the commodity is important, the consistency and efficiency of the partnership must equal this. For many items outside the goods itself, including a guaranteed availability of supplies, operation, successful order management, shipping, and sometimes credit extension, the customer relies on the seller. This variables may have more effect than making the perfect product, as problems in the supply chain cost the consumer in terms of inventory, disruption, missed orders, etc.

6. For particular uses, many company goods are customised and need a high degree of professional specialisation. Owing to their use and use in specialised business systems, even ordinary goods tend to be more complicated. Highly tailored marketing, including customizable goods , services and costs, is determined by the widely differing preferences of company consumers. Also meeting the specific operating purchasing requirements of customers usually requires a degree of customization of amounts, procurement and invoicing of logistics.

7. B2B marketing allows all aspects of the organisation to be customer-oriented and to focus all business choices on a complete and specific view of the needs of customers. Usually, B2B firms are similar to their consumers and more proactive than the traditional business corporation about their needs.

8. In a single-step process , customer sales usually require an independent decision maker. Company purchasing behaviour is distinguished by a structured multi-step procedure undertaken systematically over a period of time relative to customer decision-making, including multiple persons communicating within a centralised entity.

9. In order to make a purchase decision, consumer marketing is aimed at a mass market and does not require deep knowledge of the product or supplier. Business buyers are more sophisticated and educated compared to consumers. The business customer has years of training in his or her field and often knows more about the product and its application than the B2B marketer.

10. Each market entity has structured buying procedures, processes and buying authority levels that do not exist for customers. Company purchasing procedures are dynamic and highly organised that entail several steps over a period of time and include a wide variety of people from within the enterprise covering different fields of experience or interest. Marketers must know that it is time to quit cultivating leads and hand those opportunities over to the sales team through marketing channels. In comparison, sales need to understand whenever dead leads back to marketing for more nurturing need to be recycled.