MKTG 3000 – Essay Example
Difference between Consumer Business & Business to Business The business approach of B2B and B2C is different when purchasing decisions are involved. A direct consumer normally consults his/ her family members or friends while transacting say a purchase of car, or at the most seek guidance from the salesman of car selling agency. On the other hand a business purchase of say manufacturing equipment is a team decision involving a small or large team of technical experts like manufacturing engineer, HR executive, senior marketing executive, finance director and others. Opinion are shared and discussed before the final decision taken by CEO, the managing director, or some time even the board of directors.
Marketing and advertisement approach varies between the two. Under B2C advertising techniques like use of TV and other media that reaches the homes of consumers is very popular. Under B2B publishing and distribution of brouchers (sometime even before production of the product) to business houses, organizing seminars, trade fairs, and providing practical training to employees of customers are some techniques to create market for the product. Sometime even the projected financial sales and other details of business customers are discussed to create a demand. B2B also use online marketing but “what’s really happening with online advertising is that B2B companies are using their heads- they’ve figured out that they mostly don’t need it.”(Matt Haig, 2001)i
Most times, products under B2B are made to order, whereas made to order or customization of product under B2C is not economical. The relationship between in B2C is generally casual restricted to one or two deals unless the business is trading of groceries. On the other hand under B2B the repetition of order is a common feature of the business. Sales prices to middlemen like whole sellers and/ or retailers are lower when the business is also selling goods on B2C basis as well. Under B2B, the purchaser mostly finds its own financing resources, but under B2C the trend is to provide financing resources and avenues to customers, like tying with bankers and other financers. B2B involve long sales cycles, where frequency of sales under B2C may become a regular and short term feature. In nutshell B2B is different cup of tea when differences are compared with B2C.
Word Count: 390