Marketing Intro Clearly, there Is a huge difference between marketing to businesses (BIB) and marketing to consumers (ICC). 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.
Don’t waste your time!
Order your assignment!
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 nearly the purchases are low tech and mundane. Professional buyers purchase large, highly complex Items Like airplanes, Industrial generators or robotic equipment. In many cases, the products are custom designed specifically for the buyer. Items like office buildings, manufacturing facilities, or pipelines are one of a kind, requiring extensive collaboration between the professional buyer and their vendors. Different Communication Methods Recognizing all the differences we have discussed here, your advertising and promotional efforts have to address them.
For example, consumer advertising is armorial used to generate direct sales with no personal selling. Commercial advertising is primarily used to support the personal selling process, which is integral in commercial marketing. Consumer promotion Is built around television, radio, Internet and print media. Commercial promotion Is built around trade shows, trade magazines, or formal presentations In conference rooms. It’s not unusual for a company to Invite a buyer or team of buyers to vault their manufacturing faculty or corporate headquarters to gain a better understanding of the product or the than buying a magazine ad.