Strategy – Definition and Features
The word “strategy” is derived from the Greek word “strategos”; stratus (meaning army) and “ago” (meaning leading/moving). Strategy is an action that managers take to attain one or more of the organization’s goals. Strategy can also be defined as “A general direction set for the company and its various components to achieve a desired state […]
What is Status Consumption and Why it is Important for Marketers of Premium Goods ?
With the advent of globalization, marketers have had the opportunity to market to a global audience from many countries and cultures. Products are no longer the traditional goods and services and instead the emphasis is on brand building and marketing brands as part of a comprehensive marketing effort to reach out to consumers. In this […]
International Retailing and Retail Logistics Challenges
International Retailing is seeing exciting times. With globalisation and availability of new market opportunities, we see a lot of aggression from International Retailers in consolidating their operations within the country and setting up new outlets in emerging markets such as South East Asia. International buying and supply chain has undergone a series of evolution since […]
Relationship Marketing – Leveraging on Supplier Relationships
Business today has become customer centric. Organizations are investing heavily into getting to know and building a relationship with the customer in order to retain the customer and extend the relationship. Use of technology and CRM tools, Organizations are able to customise communication to individual customers and target specific customer segments to focus upon. As […]
Various Forms of Shareholders Ownership
The previous articles discussed how shareholders play an important role in promoting good corporate governance. This article looks at the patterns of shareholder ownership that are prevalent in organizations in the corporate world. To start with, any company whether it is private or public limited needs to have shareholders who contribute equity to the setting […]
Business Marketing: Business Marketing refers to the sale of either products or services or both by one organization to other organizations that further resell the same or utilize to support their own system.
Consumer Marketing: on the other hand refers to the transaction of goods and services between organizations and potential customers.
The above definitions of business marketing and consumer marketing highlight the difference between the two commonly used terms in marketing (B2B and B2C).Business marketers do not entertain consumers who purchase products and services for their end-use. They deal only with other businesses/firms to sell their products.
In consumer markets, products are sold to consumers either for their own use or use by their family members.
Products in consumer market are further categorized into:
Fast moving consumer goods are items that are sold quickly to the end-users generally at nominal costs. Example - Aerated drinks, grocery items and so on.
Goods that a consumer uses for a considerable amount of time rather than consuming in one use are categorized under Consumer Durables.
Consumer Durables are further categorized into - White Goods and Brown Goods
Soft goods are products which have a shorter lifecycle and their value decreases after every use.Eg shirts, clothes, shoes.
Examples of Business Marketing (industrial marketing)
Office furniture (Cabinets, desks, workstations, drawers) - End user will not purchase workstations for his own use at home.
Bulk SMS service (utilized by organizations)
In business marketing, marketers deal with lesser number of individuals as compared to consumer marketing where one has to deal with the mass market. Generally a single employee of one organization would be appointed to deal with the concerned employee of the other organization (client). He does not have to interact with the entire organization.
Organization A sells laptops and desktops to Organization B (A case of B2B marketing).Tom from Organization A has to deal only with either the IT professional or the administration representative.
Organizations dealing with consumers need to interact with every individual who is a potential end-user.
Industrial marketing is more focused as compared to consumer marketing.
Business marketers generally deal with sophisticated employees whereas it is not at all necessary every end user in consumer market would respond to marketers politely. Business buyers generally are educated and well informed. In consumer market, your buyer can be anyone- educated, uneducated, labour and so on. Business marketers themselves need to be well spoken and polished. They must have a pleasing personality and good convincing power.
Business marketers need to be extremely careful about their mode of communication. Emails exchanged with clients should have appropriate subject line. Mails with irrelevant subject line are generally not read by clients. In business marketing, marketers ought to send personalized emails. Bulk SMSes or mass mailers do not work in business marketing. In consumer marketing, products can be promoted through advertising, pamphlets, brochures, hoardings or simply mass mailers.
There are less number of business buyers as compared to individuals who purchase for their own end use.
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