Question

Marketing Question: Explain in full detail the difference in business markets and consumer markets. Include how the factors of the marketing environment affect each market. (also please provide examples of consumer markets)

Answer 1

The difference between the business market- B2B and the consumer market- B2C are as follows:

- Meaning and goal- Business market deals with business to business deals done for reselling or facilitating in the manufacturing process and consumer marketing is where deals are between business and consumer and goods are sold to the consumer for end-use.

- Procurement- The procurement process in B2B is complicated as the decisions are made on management level and certain steps are followed for the procurement to be done. The procurement in B2C is simple and decisions merely depend on the tastes and preferences of the consumers.

- Payment structure- The payment structure is complex and lengthy in the B2B process where purchases can be done in credit and the payment can be done over a period of time. Also, the purchases are made in bulk hence the amounts to be paid are also more. In the B2C market, the purchases are done in small quantity and payments are made then and there mainly including cash and short term credits.

- Negotiation and buying options- The buying options and negotiation scope is more in the B2B market than in the B2C market because they purchases in the former are done in bulk. The process of getting quotations from different suppliers, bargaining based on the difference in the quotations and choosing the best supplier is followed in the B2B market. Whereas the B2C market involves direct purchasing from the most convenient source with a very little scope of negotiation.

- Advertisement- The advertisement in the B2B market is done on an individual basis. The marketers know their limited customers and thus promote their products to them only through limited advertisement channels like personal emails. In B2C market advertising holds vital importance as the product is launched and positioned in the market with a strong advertising channel reaching out to more people.

- Scope of business- The B2B marketers focus on a small group of buyers as their target and maintain long term relationships with them. B2C market consists of a large number of consumers who buy products off and on and keep no personal relationship in the deals.