Business Market vs Consumer Market
Business Markets versus Consumer Markets
B2B marketing is different from consumer goods marketingB2B marketing is different from consumer marketing.
B2B marketing is different from consumer marketing.
The most important areas of differences are: market structure, products, buyer behaviour, demand, distribution channels, prices and communication. These differences affect marketing processes in a critical way.
Market structure
B2B markets are more segmented than consumer markets. That means fewer prospects for a specific product or supplier. The customer are often segmented geographically – e.g. steel industry in Ruhrgebiet or banks in Frankfurt/Main – sometimes there is only one customer for suppliers e.g. Deutsche Bahn for locomotives or Telekom for local telecommunication systems. Furthermore the number of suppliers of specific products is much smaller than in consumer markets. The structure often is an oligopoly – e.g. in the airplane market exist only a few competent suppliers.
Products
Products offered in B2B markets are technically complicated and require more explanation and information than most products in consumer markets. Costumer expectations concerning technical features are extremely high; often products are especially designed for certain customers. Product development can be carried out by a cooperation of supplier and customer. B2B markets can be characterised by product and service packages. Consulting, implementation and maintenance are playing a significant role. Though there are also products offered in B2B markets and consumer markets. A car can be bought for private purposes or as part of a fleet in a company.
Buyer behaviour
Organisations behave differently from private consumers. The main difference lies in the buying decision. In B2B markets a number of persons are involved, the decisions are made in a more rational way, spontaneous buying decisions don’t exist. Many persons on the buyer’s side are extremely competent because they
B2B marketing is different from consumer goods marketingB2B marketing is different from consumer marketing.
B2B marketing is different from consumer marketing.
The most important areas of differences are: market structure, products, buyer behaviour, demand, distribution channels, prices and communication. These differences affect marketing processes in a critical way.
Market structure
B2B markets are more segmented than consumer markets. That means fewer prospects for a specific product or supplier. The customer are often segmented geographically – e.g. steel industry in Ruhrgebiet or banks in Frankfurt/Main – sometimes there is only one customer for suppliers e.g. Deutsche Bahn for locomotives or Telekom for local telecommunication systems. Furthermore the number of suppliers of specific products is much smaller than in consumer markets. The structure often is an oligopoly – e.g. in the airplane market exist only a few competent suppliers.
Products
Products offered in B2B markets are technically complicated and require more explanation and information than most products in consumer markets. Costumer expectations concerning technical features are extremely high; often products are especially designed for certain customers. Product development can be carried out by a cooperation of supplier and customer. B2B markets can be characterised by product and service packages. Consulting, implementation and maintenance are playing a significant role. Though there are also products offered in B2B markets and consumer markets. A car can be bought for private purposes or as part of a fleet in a company.
Buyer behaviour
Organisations behave differently from private consumers. The main difference lies in the buying decision. In B2B markets a number of persons are involved, the decisions are made in a more rational way, spontaneous buying decisions don’t exist. Many persons on the buyer’s side are extremely competent because they