Commercial Marketing vs Consumer Marketing
Commercial Marketing vs Consumer Marketing
Intro
Clearly, there is a huge difference between marketing to businesses (B2B) and marketing to consumers (B2C). To be successful, marketers must understand the fundamental differences involved. The needs of the two markets are vastly different and their approach to the buying process is different. Marketers have to understand the differences in mindset and authority of a consumer and professional buyer to be successful.
Types of Decisions
Consumers typically make common decisions on food, apparel or entertainment in small quantities. Professional buyers typically make large scale purchases. Consumers make unilateral decisions, while professional buyers make decisions as a team, often subject to approval of others, using a formal buying process. Consumers face a yes or no decision on an offered price, while professional buyers will negotiate not only the offered price but related factors like payment methods, technical support, changes in quality or features or advertising support.
Buyer Mindset
Consumers often make spontaneous decisions based on emotion. Professional buyers make their decisions based on knowledge and training, in a professional manner. Consumers generally have limited product knowledge, while professional buyers specialize in areas of procurement and know the products involved extensively. Competition plays no role in consumer purchases, while professional buyers are keenly aware of what their direct competition is purchasing. Consumers generally make one time purchases, while professional buyers prefer to develop long term relationships with their vendors.
Product Complexity
Most consumer purchases are everyday items we all use on a regular basis. They might buy one or two custom made houses, or 5 or 6 new cars over a lifetime, but generally the purchases are low tech and mundane. Professional buyers purchase large, highly complex items like airplanes, industrial generators or robotic
Intro
Clearly, there is a huge difference between marketing to businesses (B2B) and marketing to consumers (B2C). To be successful, marketers must understand the fundamental differences involved. The needs of the two markets are vastly different and their approach to the buying process is different. Marketers have to understand the differences in mindset and authority of a consumer and professional buyer to be successful.
Types of Decisions
Consumers typically make common decisions on food, apparel or entertainment in small quantities. Professional buyers typically make large scale purchases. Consumers make unilateral decisions, while professional buyers make decisions as a team, often subject to approval of others, using a formal buying process. Consumers face a yes or no decision on an offered price, while professional buyers will negotiate not only the offered price but related factors like payment methods, technical support, changes in quality or features or advertising support.
Buyer Mindset
Consumers often make spontaneous decisions based on emotion. Professional buyers make their decisions based on knowledge and training, in a professional manner. Consumers generally have limited product knowledge, while professional buyers specialize in areas of procurement and know the products involved extensively. Competition plays no role in consumer purchases, while professional buyers are keenly aware of what their direct competition is purchasing. Consumers generally make one time purchases, while professional buyers prefer to develop long term relationships with their vendors.
Product Complexity
Most consumer purchases are everyday items we all use on a regular basis. They might buy one or two custom made houses, or 5 or 6 new cars over a lifetime, but generally the purchases are low tech and mundane. Professional buyers purchase large, highly complex items like airplanes, industrial generators or robotic