Markets fall into two
categories: consumer markets and business markets. A consumer market consists
of purchasers and household members who intend to consume or benefit from the
purchased products and they do not buy products to make profits. Business
markets consist of individuals or groups that purchase a specific kind of
product for resale, direct use in producing other products, or use in general
daily operations. One can imagine the marketing strategies for these two
markets have to be different since the needs, wants and buying procedures are
different for the markets. Generally business markets are more likely to be
price driven and consumer markets are more brand driven. Therefore, a company selling
to another business may want to focus more on promoting why what they have to
offer is worth the price, and have the price be the focus of their advertising.
Whereas a company selling to a consumer may want to focus more on promoting
their brand name, making it the focus of their advertisements. Also, for
consumer markets the customer is usually very distant from the manufacturer/company
making the product therefore businesses in consumer markets need to use mass
communication and distribution tools to market their products/services. In business
markets on the other hand, the customer is much closer and the manufacturer has
a lot more knowledge of the customer and may market through personal selling
techniques rather than mass communication.
Do you think companies in a consumer market spend
more money on marketing than companies in a business market?
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