In the consumer markets the customer decision making process is comparatively simple and short. The opposite happens if the business buyer anticipates continuing price increases. For business-to-business marketers, the size of individual orders, along with a smaller number of buyers, makes person-to-person contact by sales representatives a more effective means of promotion.
But even in straight rebuy there are risks such as the item not being delivered on time.
On the other hand the consumer only searches information when he requires to make a decision. Customers in consumer markets initiate a direct demand with their purchases. Business buyers may have contracts to purchase items for a year with a supplier.
In business marketing, marketers ought to send personalized emails. The overall macro-economic conditions affect both markets: Long-term contracts lasting for the life-time of the component are becoming common in business markets. It is greatest in the new-task situation, in which the buyer has not encountered such a buying situation.
Thus business marketers focus on improving profits in the short run. Therefore business marketers must have more global perspectives of markets, in terms of both customers and competitors.
Business marketers send their technical and other staff to the facility of the buyer for long periods. Loyalty in business markets is the result of dependence that buyers and sellers have on each other.
Consumer segmentation is usually based on geographic factors, such as region and population density; demographic factors, such as age, gender and family status; and behavioral factors, such as brand loyalty and price sensitivity.
They buy in bulk because they want to minimize transportation cost and the cost incurred in placing an order. Risk is least in the straight-rebuy situation, in which the item just has to be reordered. Business marketers do not entertain consumers who purchase products and services for their end-use.
Employees of the buyer and seller organizations work together to solve problems.The business buyer is sophisticated in terms of the process involved in buying, decision making while on the other hand the consumer in the consumer market might not be as sophisticated The business buyer is an information-seeker, constantly on the lookout for information and advice.
There are many difference between business markets and consumer markets. Some of the differences are as mentioned in this article.
While the business market involves businesses selling products to other businesses, the consumer market involves businesses selling products to other consumers. For marketers, the selling environment of business markets present uniquely different circumstances when compared to selling to consumers.
At the beginning of this tutorial, we saw two ways in which consumer and business markets differ. Business markets are more likely to be price driven than brand driven, and.
There is a difference between marketing to business and marketing to a consumer, believe it or not. Although you are still selling a product to a person, experience shows that the difference between these two types of markets runs deep.
Consumer and business markets present a different set of challenges and opportunities for businesses. Some products can be sold to only one market while others can be sold to both.
Difference Between Business Markets and Consumer Markets; Basu, Chirantan. "Consumer Vs. Business Markets." Bizfluent, https. In conclusion, business and consumer market is different in several key characteristics: type of customers, number and size of customers, geographical concentration, demand, buying expertise and process, buying decision making and relationship (Table 1 summarize the differences between business and consumer market).Download