...INTRODUCTION The idea or concept of Business to Business (B2B) marketing has existed for centuries but for a long time it had been ignored and remained in the shadows of the more traditional Business to Consumer (B2C) marketing (Pitt & Honeycutt, 2001). It is over the last two decades has more light been shone on this important phenomenon- where businesses trade with other businesses, governments and Institutions . It is essential to first and foremost understand that B2B marketing cannot exist in isolation, the existence of B2B and B2C markets are in many ways dependent on each other for its survival and growth, a single demand for a B2C product such as a car gives rise to millions of B2B market demands such as aluminum, leather, steering systems, engines, etc (derived demand). Furthermore a failure in one market will have significant detrimental impact on the other. This essay however aims to identify the differences that exist between the two markets and how multinationals such as Hewlett-Packard (HP) implement separate marketing strategies based on the distinctions that exist within the market and their consumers. PRODUCT DIFFERENCE (standardized vs. complex) Hewlett Packard (HP), famous for its laptops, desktops and printers and storage devices sells its products in both markets. The B2C market it operates is more standardized and less complex that its B2B counterpart. Large groups of individual customers exist whose specifications for the products are more or less...
Words: 2006 - Pages: 9
...B2B Marketing Verses B2C Marketing Opportunities Business-to-business (B2B) and business-to-consumer (B2C) marketing is different. Some people think marketing is marketing and whether it is marketing to consumers or marketing to businesses, it is still just marketing to people. E-commerce is rapidly becoming the new frontier of the 21st century. As a business strategy with tremendous potential, is worth taking a close look at what works and why and why it can work. In the today business environment, there is a clear advantage to being on the Web ahead of the competitors and in presenting a high quality image and positive, productive communications through Internet contacts. Advertising by promotional pages is an extremely effective way to highlight a single product and is rapidly becoming the product presentation form preferred. Especially when combined with e-mail or newsletter programs, it offers terrific versatility in adapting your advertising to specific interest groups and retail customers. Promotional pages have been regularly used in print media to introduce a product, but the electronic version can be used and reused for as long as needed without additional printing expense. It is clean, focused, concise, and detailed, is the next best thing to putting a product sample in the consumers hands. Marketing by means of the Internet offers both opportunity and hazards for businesses that choose to operate online. On the opportunity side, the B2B electronic market is an remarkably...
Words: 1075 - Pages: 5
...B2B vs. B2C For more than a decade usage of the Internet has increased exponentially changing the way companies interact with their customers. According to Ralph Oliva (2007, p.1), “Forecasters expect domestic B2B purchases will continue to total trillions of dollars annually.” He goes on to say that in 2004, “domestic B2B online sales totaled $2.7 trillion” while online retail sales in 2004 reached $184 billion. This increase has opened up new opportunities and challenges for marketing to these customers electronically. Because business customers and individual customers react differently to marketing, strategies and tactics used to reach one segment may differ from those used to reach the other. This paper will first look at how the business customer and retail customer are different, then delve into the differences between B2B and B2C marketing. Relationship Differences One important aspect of marketing is to build good relationships with customers. “In B2B or business to business this requires a commitment of time and good customer service prior to ever making that first sale.” (Warholic, 2007, p.1). One of the differentiating factors between B2B and B2C sales is the B2B sales process takes longer because business customers require more communication and product details. Business customers are not apt to purchase during the first contact with a vendor. Usually the sale, especially the first one, takes multiple contacts creating a bonding relationship. Business...
Words: 1179 - Pages: 5
...Marketing is the front line of every organization’s attitude to social responsibility and corporate citizenship. In recent times, every successful company has one common agenda at all stages – their main aim is to focus on customers and also they are heavily loyal to marketing. Every companies share a passion for understanding and satisfying the wants and needs of their customers in distinct target markets. The world where the marketing takes place is a self-motivated and potentially very exciting one. However, what it actually means, and how it benefits for the business. Marketing “ is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, services to create exchange that satisfies individual and organizational goals”(AMA,1985). The marketing includes all these things including own experiences that influence and encourage customer’s attitudes to organizations and the product packages on offer. It helps consumers to build expressive bonds with the products they purchase, and to gain psychological as well as functional satisfaction from their use. The Chartered Institute of Marketing defines marketing as, ‘Is the Identification, Anticipation, and satisfaction of customer needs, profitability’. The main role of every organization is to create image and lasting customer relationship in the market based on creating value. Marketing is a process or efforts by organizations to inspire society/community to get them best solutions...
Words: 2616 - Pages: 11
...MARKET IN B2B ENVIROMENT: Understanding the B2B Dynamics Seminar Report ii ABSTRACT With the rise of globalization and saturated local markets, many companies started chasing international opportunities that would help them expand to new countries and increase their brand recognition around the globe. One of the challenges that companies face while entering a new market is defining the right price and pricing of their offering to be competitive and successful in the market. In B2B area, there are not any wide research on pricing issues that companies face in the markets that they are planning to enter and the effects of business relations on pricing. This paper focuses on market entry strategies and market entry modes, the fundamentals of pricing in a new market and the differences of B2B and B2C pricing. The study covers market entry modes and its impact on profitability, value creation in B2B area and the key aspects of pricing behaviour while entering a new market. This study in general provides a framework for implementing the right pricing strategy while entering new markets and defining the right pricing behaviour in B2B environment. This framework enables companies to understand the dynamics of B2B environment covering buyer-supplier and distributors relations and providing pricing models for companies to be a competitive player. Tamur, O. iii PREFACE This paper discusses the concepts of pricing and pricing behaviour in a new market in B2B environment...
Words: 5613 - Pages: 23
...other hand, customer acquisition is the process of attaining new customers. Similarities and differences are present in the retention and acquisition of customers. In business-to-business and business to customers, sales relationship approaches are used inversely during sale activities to secure retention. Comparison/Contrast The expense for customer retention and customer acquisition varies within each organization but have similarities with its implications. Some similarities include the purpose activities, strategies and direct relationship. • Purpose: The purpose of a business to devote efforts to customer retention and customer acquisition is to increase sales of a product or service. Businesses implement these two activities to secure a large base of customers. • Activities: The expenses accrued for performing customer retention and customer acquisition exists in business-to-business and business to customer. • Strategies: Cost of strategies used for retaining and acquiring the customer is also identical in terms of sales activities. • Direct relationship: There is a direct relationship between retaining customers and acquiring new customers. Satisfied customers are loyal and loyal customers can help a business in obtaining new customers by word of mouth. Just as similarities are recognized between customer acquisition and retention, difference are present, such as investment, efforts, customer communication, planning, and...
Words: 557 - Pages: 3
...Management 22 (International Business and Cross-Cultural Management) Jan Ray O. Macanas 3rd Year BSBA FM The Importance of Investment in an Emerging Country Developing countries, also known as emerging markets, are becoming the driver of global growth. It is expected to grow two to three times faster than developed countries like the US according to the International Monetary Fund. And because of the growth many investors are being pulled in to invest to some emerging markets. This growth is very important among investors because it simply enables them to foresee the future of their investment. (Forbes. “What Makes Emerging Markets Great Invesment?”.www.Forbes.com.) China has become a leading foreign investor among all emerging countries, According to the main stream of international business literature on the topic of multinationals from emerging countries, there are generally five motivations for multinationals to invest abroad; they seek resources, technology, markets, diversification, and strategic asset. A careful analysis of the data and the investment by Chinese multinationals indicates the similar motivations provided by China. Chinese government has, to a great extent, played a crucial role in shaping the structure of the country's outward investment; this is consistent that China's FDI has been part of the government's development scenario. Since the 1980s, the government has required the overseas subsidiaries to achieve one of the four goals--introduction...
Words: 2849 - Pages: 12
...business market. (B2B). Fast moving consumer goods (FMCGs) are those products with a short shelf life as a result of the high frequency with which they are sold and also because some of them are easily perishable. One major characteristic of FMCGs is that they sell fast at a relatively low cost. Examples of these products include perishable foods such as meats, fruits, vegetables and baked foods; Fast selling goods such as soft drinks, alcohol, processed and prepackaged foods as well as toiletries etc. These goods are bought frequently due to their essential nature in the daily life of consumers. (Erdoğan and Taymaz ,2005). Of interest to a marketer is a clear understanding of the characteristics of this type of goods and the FMCGs market in general. FMCGs market involves a high volume of goods per day for example. This is due to the fast moving nature as well as the essential of the goods. Some of them are have to be bought by consumers on a daily basis. As a result, the companies dealing with these goods have an extensive distribution network in order to reach as many consumers as possible. The stock turnover is also high. Profit margins are relatively small due to the nature of the goods dealt with in this type of business. BUSINESS TO BUSINESS Business to Business (B2B) is type of commerce transaction that exists between businesses, such as between manufacturers and wholesalers, or wholesalers and retailers. Here, transactions are clearly between businesses/companies...
Words: 4516 - Pages: 19
...trade event, direct marketing, sales promotion and personal selling. Advertising: Advertising is the process through which a company draws attention of the members of public about its products and services by communicating it to them through advertisements which are communicated through various sources of medium like TV, Radio, news paper and leaflets. The main disadvantage of advertising is it involves high costs (Bertrand et al, 2010). Public Relation: Public relation is the process through which a company communicates the positive messages about itself and its services through press releases and events that are conducted by the company. The main disadvantages of public relation are that designing and implementing a public relation campaign is a complex process and the success of the process is hard to measure (Karimi, 2013). Trade Events: Trade events are processes through which a company displays its products and services to the members of the public to create awareness through trade fairs to create awareness and increase its market share. The main disadvantage of conducting trade events for a company is that they may not attract and deliver the message to the target customers of the company (Gottlieb et al, 2011). Direct Marketing: Direct marketing is the process in which a company provides marketing information about its products and services directly to its customers to increase awareness and market share. The main disadvantages of direct marketing are that the process...
Words: 3101 - Pages: 13
...used in b2b and b2c 2 1.2 Explain how use of professional buyers affects the buying process 3 1.3 Analyze variables in purchasing 5 2 Understand EDI and Electronic transactions 6 2.1 Explain how electronic transactions can reduce paperwork and delay 6 2.2 Examine how EDI has developed and laid the foundations for b2b e-business 7 2.3 Evaluate the use of different Electronic Payment Systems 8 3 Be able to demonstrate the benefits of electronic transactions to supply chain management 10 3.1 Create a diagram for an e-business supply chain 10 3.2 Write a report on the advantages of e-procurement 11 3.3 Present an analysis on the flow of information in a typical logistics operation 13 3.4 Demonstrate the benefits of electronic processes in integration of supply chain management 14 4 Understand issues in e-business including quality recruitment and security decisions in an organization 15 4.1 Explain how the issues of trust and security apply to supply chain management and other e-business operations. 15 4.2 Evaluate how the internet can be used for communication with prospective/current employees 18 4.3 Assess the issue of quality for an e-business 19 4.4 Review the development of the internet technologies on b2b industry networks and b2c markets 21 References 22 1 Understand how business and consumer purchase transactions differ 1.1 Describe the purchasing process used in b2b and b2c The reason of having a better considerate of B2B market,...
Words: 6477 - Pages: 26
...has emerged from the consumer goods domain particularly fast moving consumer goods. Historically, brand has been inextricably linked to the product and branding is seen as the process of adding value to the product. A brand is a cluster of functional and emotional benefits that extend a unique and welcomed promise. This conceptualisation of a brand is universal and applies to various domains including FMCG, internet services and B2B. What changes in every context is the enactment of the brand. It is argued that the concept of a brand is universal, however some adjustments are required in line with the specific context applied; in this case the B2B context. Branding has myopically been viewed by business marketers as largely irrelevant to business markets. Associated mostly with emotional value, branding was believed to offer very little to what is traditionally considered a very rational process i.e. the organisational decision making process. More recent research acknowledges that despite the differences between B2C and B2B contexts both B2C and B2B brands need to engender trust and develop both cognitive and affective ties with stakeholders. THE BENEFITS OF BRANDING IN INDUSTRIAL MARKETS Branding in an industrial market must be perceived to convey benefits to various stakeholders for companies to financially invest in it. With regard to the company investing in branding a number of benefits have been identified. Cretu et al (2007) found branding had a positive impact on...
Words: 3733 - Pages: 15
...brand. A brand is defined as a name, term, sign, symbol, or design, or a combination of them , intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. (Kotler, Keller, 2012) While many things in branding are the same, building a brand that supports brand to brand, B2B, or brand to customer, B2C, sales has slight differences. In an online article entitled, Focus Area, Business Market, B2C and B2B are compared. Here are a few of those comparisons: In the consumer market, every customer has equal value and represents a small percentage of revenue, products are the same for all customers-the service elements are low, and costs are restricted to purchase costs. In the business-to-business context, there are a small number of big customers that account for a large percentage of revenue, products are customized for different customers-service is highly valued, and purchase costs may be a small part of the total costs of use. These are just a few among many comparisons between business-to-business and consumer market. In B2B branding, a focus will be made on making a strong connection with the client business in order to make their brand seen as the top choice and safe to do business with. In order to do this, the brand will be built around making strong and personal relationships with the customer to become the go-to source. Instead of mass marketing and small ads, B2B branding requires that the business be...
Words: 765 - Pages: 4
...of many: the need for brand management for business-to-business (B2B) companies Philip Kotler Marketing Department, Kellogg School of Management, Northwestern University, Evanston, Illinois, USA, and Waldemar Pfoertsch Pforzheim University, Pforzheim, Germany and China Europe International Business School, Shanghai, People’s Republic of China Abstract Purpose – This analysis aims to examine the need of business-to-business companies for branding and analyzes the options for success by means of the stock performance. Design/methodology/approach – The paper consists of a qualitative and quantitative pilot study and a quantitative main survey. Findings – Long-term branding strategies, brand performance and firm’s business performance are found to be positively correlated with stock increase. Current brand focus and use of guiding principles can lead to improved business performance. Research limitations/implications – The study has possible location- and industry-specific limitations. Practical implications – Managerially, the findings encourage firms to adopt a long-term branding strategy, focusing not only on brand development. Originality/value – By systematically examining relationships between branding strategy and performance of the global firms, this study adds knowledge to the field of B2B brand research. Keywords Business-to-business marketing, Brand management, Marketing strategy, International marketing Paper type Conceptual paper An executive summary for managers...
Words: 4226 - Pages: 17
...BAM461: MARKETING Name: Nam Hoai Nguyen Student ID number: s1128290 Module tutor: Kandis Watson Course: MBA Word count: 2,854 I. According to Bloisi, W., Cook, C.W. and Hunsaker, P.L (2003), consumer market refers to the purchase of goods and services purely for personal consumption. Consumer market and consumer buying behaviour must be studies and understood before an appropriate marketing plan can be developed. In general, organisations and companies need to know and understand the behaviour not only for their own customers but also for all consumers. Multiple roles of Consumers As users of a product, consumers are concerned with product features, thus users define what is needed from a product. Payers are consumers who pay for the product and are primarily concerned with its price and other financial considerations (reasonable life cycle of the product, cost of maintenance, cost of consumables, etc). Buyers focus on the logistics of the products (online, by phone, mail or retail center).In a particular purchase situation, the roles may be filled by a signal individual or by multiple people, for example, a parent may decide on the type of baby food that they wish to purchase but their partner may also beinvolved in the decision making or transaction, while the baby is the ultimate user of the food. The stages of consumer buying process The consumer buying process: Irrespective of the particular role, consumers constantly face a number of choices: -Whether...
Words: 2898 - Pages: 12
...including sales, marketing, order taking, delivery, customer service, purchasing of raw materials and supplies for production and procurement of indirect operating-expense items, such as office supplies. It involves new business models and the potential to gain new revenue or lose some existing revenue to new competitors. It's ambitious but relatively easy to implement because it involves…suppliers or intermediaries such as Web-based marketplaces; and integration of technology with modestly redesigned processes for order handling, purchasing or customer service. E-business includes e-commerce but also covers internal processes such as production, inventory management, product development, risk management, finance, knowledge management and human resources.” (Bartels, 2000) Electronic-network retailing, or e-tailing, is how a firm retails or sells its products or services via the internet. It is a subset of e-commerce and includes many of the multifaceted layers of e-business. This essay will give an overview on the current state of e-tailing. It will examine the critical success factors, advantages and drawbacks, size, growth trends, and areas of consumer products that do well and not so well. Introduction In order to fully grasp e-tailing it is important to understand the many channels of distribution of e-commerce. Again, a “marketing channel…is a group of organizations that moves products from their producer to customers... Organizations that bridge the gap between a product’s...
Words: 2922 - Pages: 12
