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Business Marketing Versus Consumer Marketing

In: Business and Management

Submitted By kandrews70
Words 477
Pages 2
Business-to-business (B2B) markets and consumer markets present different challenges and opportunities for businesses. Some products can be sold to only one market while others can be sold to both. For example, equipment manufacturers generally sell to industrial businesses and restaurants cater mainly to consumers, while technology companies tend to sell to both consumers and businesses. The needs and characteristics of these markets are different. Therefore, the marketing strategies for each are also different.
Purchases/Needs
Overall, purchases made by businesses and consumers are quite a bit different. Businesses usually purchase capital equipment and raw materials to make products which they resell to consumers or other businesses. Consumers purchase products such as grocery items, microwaves and computers for personal or household use. Service needs of the consumer and of businesses are also different. For example, businesses may use management consultants and business outsourcing services, while consumers use investment advice and fitness training services.
Characteristics of Purchases
Businesses typically make purchasing decisions after a formal process involving two or more people. Consumer buying decisions can be made by one person, usually at a place of business or online, and the process is more informal. Businesses are often the integrators of products and services while consumers are the end users. Consumer demand usually influences business demand. For example, an auto manufacturer is not going to run its shifts at 100 percent capacity if the auto dealerships are filled with unsold cars. Demand also affects price. Consumers are more likely to react to changes in price by buying fewer quantities or switching to comparable lower-priced products. Businesses may not object to price increases as long as there is sufficient demand to

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