Compare business to business and business to consumer market

1) Fewer Buyers: In business market, buyers are fewer is number as compared to consumer market.eg. A book publisher looks towards universities for the recommendations of its books. But after recommendations sells the same to the students who are thousands in number. 2) base Close Supplier but : Customer important relationship : There power, we is a can smaller observe Customer that

having

there is a close relationship between the two parties because customer is heavily dependent upon supplier. 3) Geographically Concentrated Buyers : Most of the business concerns that products the same nature of products are generally found concentrated in a particular geographic area. Availability of raw material and transportation reduces its cost but in consumes market there is different way. 4) Derived Demands : The demand for many business goods is ultimately derived from demand of consumer goods. Organizations often target marketing as ultimate consumer even though firms don't sell them directly in consumer market. 5) Inelastic Demand : The demand for many business goods and services is inelastic, means fluctuations in prices of product will not significantly affect the demand for product in business market. Elastic demand means a change in price will cause an opposite change in demand in consumer market. 6) Fluctuating Demand : The demand for business good and services tends to be more volatile than the demand for consumer goods and services. 7) Professional Purchasing : Products in business markets are

purchased generally by highly spelled and professional people by inuiting bids, tenders and quotation which is not found in case of consumer market buying.

8)

Direct

Purchasing

In

business

market

buyers

buy

directly

from

manufacturer rather than through intimidator, as in case of consumer buying. 9) B2C mostly uses indirect methods whilst B2B mostly uses direct methods: Indirect methods

o o o o o o o

Advertising Signs/posters Media relations Sponsorship Literature (left on display) Web sites Word of mouth Networking Selling Tenders/Proposals Presentations Literature (mailed) Seminars/briefings Hospitality Telemarketing

Direct methods
o o o o o o o o

10) business marketing mainly wants to prevent companies from disconnecting, while consumer marketing is solely focused on looking for people that want to connect. Two examples that illustrate this difference: Trade show (b2b) A trade show basically has the entire market in attendance. Directors, account managers, sales staff are all there. Everyone is there foremost to receive current contacts and be present. A limited number of new contacts are made, that might in a few months result in a negotiation

 Household fair (b2c) Every consumer brand is there with a booth, some companies having as many as 5 separate stands. Booths are inhabited with temporary sales people without any brand connection that are instructed to hand people as many samples as possible. Visitors are bombarded with countless special offers.

Difference between Marketing and Selling

MARKETING Marketing starts with the buyer and focuses constantly on buyers needs. Seeks to convert customer needs into products Views business as a customer satisfying process. Marketing effort leads to the products that Thecustomers actually want to buy in their o wn interest.

SELLING Selling starts with the seller and is preoccupied allthe time with the sellers needs

Seeks to convert products into Cash Views business as a goods producing process

The company makes the product first and then figures out how to sell it and make a profit

Marketing communication is looked upon as a tool for communicating the benefits/ satisfactions provided by the product customer as

Sellers motives dominate market ing communication (promotions) Cost determines the price Selling views the customer as the last link in the business. Sales is the primary motive Internal company orientation. Selling concept takes an insideout perspective

Consumers determine the price; price determines costs

Marketing

views the

the very purpose of the business. It sees the business from the point of view of the customer. Customer consciousness permeates the entir e organization all departments, all the

people and all the time External market orientation Marketing concept perspective It is a broad composite and worldwide concept, more so in this era of globalization. Marketing is more pull than push Marketing begins much before the takes an outside in

It is a narrow concept related to product, seller and sales activity.

Selling involves push strategy. Selling comes after production and ends with the delivery of the product and collection of payment.

production of goods and services, I.e. with identification of customers needs. It continues even after the saleto ensure customer satisfaction through after sales services. Marketing has a wider connotation and includes many activities like marketing research, product planning & development, pricing, pr omotion, distribution, selling etc It concerns itself primarily and truly with the value satisfactions that should flow to the customer from the exchange It assumes: Let the seller beware. Marketing generally has a matrix type of org anizational structure The main job is to find the right products for your customer The mindset is What is that we can make here or source from outside to satisfy the needs of the target customers

Selling is a part of marketing It over emphasizes the exchange aspect, withoutcaring for the value satisfactions inherent in the exchange

It assumes: Let the buyer bewar e It has a functional structure The main job is to find the custo mers for your products The mindset is Hook the customer Selling and conversational skills ar e required

Conceptual and analytical skills are required.