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9 views

b2c b2b

Uploaded by

Munashe Chitawa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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10/07/24 Consumer (B2C) and industrial marketing (B2B)

• The differences between selling to consumers and selling to other businesses start with the
type of products.

The classification of products


• Products can be classified into consumer products and goods and industrial products.
• Consumer products - goods and services produced for sale to end users. (individuals and
households)
• Industrial products – goods and services sold to other businesses.
Consumer products are classified into:
(i) convenience products – purchased frequently, bought on impulse and sold to a large
target market (e.g. sweets, soft drinks)
(ii) shopping products – products which require some planning and research by consumers
before being purchased; and are bought infrequently (e.g. washing machines)
(iii) speciality products – bought infrequently, often expensive and with strong brand loyalty
(e.g. cars and designer clothing).
Industrial products are classified into:
(i) materials and components – needed for production to take place (e.g. steel and electric
motors for washing machines)
(ii) capital items – equipment, machinery and vehicles (e.g. lathes, IT systems and industrial
buildings)
(iii) services and supplies – business services and utilities (e.g. power supplies and IT
support/maintenance).

• The differences between selling in B2B and in B2C:


a) Most industrial products i.e. equipment for power stations, are complex than consumer
products, so specialist sales employees and support services are important in B2B selling
than in B2C marketing.

b) Industrial buyers have more market power and are better informed than consumers.
o They need to be sold products by well-trained and experienced sales employees.

c) Industrial buyers rarely buy on impulse, but only buy after long consideration and a detailed
analysis of alternatives.
d) A business selling B2B needs to keep in regular contact with industrial customers. e.g. to
further instruct them on how to use industrial products.
e) Mass media advertising and sales promotion techniques are not used in industrial markets
(in B2B marketing).
o Selling is done through trade fairs or direct contact with industrial buyers, often via websites.

f) Industrial products are adapted to meet particular customer needs. e.g. a specialist elevator
for a tall hotel building. This is unlike consumer markets which have mass marketing.
Mass marketing and niche marketing
• These are two different approaches to marketing strategy.

The features of mass and niche markets


• Mass market - a large market made up of customers who are willing to purchase a
standardised product (undifferentiated product).
• Mass marketing is selling standardised products or ranges of products in the same way to
the whole market.
Features of mass marketing
• It focuses on selling the same standardised product (or range of products) to the whole
market.
• High sales levels allow for high levels of production.
• Associated with mass production, leading to low product prices.
• Mass marketing is observed in e.g. markets for cola drinks, toothpaste and washing-up
liquid.

• Niche market – a small segment of the market with consumers who share the same
characteristics and qualities.
• Niche marketing is identifying and exploiting a small segment of a larger market by
developing differentiated products to suit that segment.

Features of niche marketing.


• It is focused on a very small section of the total market.
• Customers in the market want to buy differentiated products.
• Size of a niche market is often small.
• Market research is necessary to establish customers’ special needs.
• The niche might be one that has not yet been identified and filled by competitors.
Examples of niche marketing:
• Versace designs and Clinique perfumes, which sell only expensive, high-status products.
• Niche markets also exist for non-luxury products i.e. extreme sports clothing, and $-stretcher
retail shops which only sell very cheap items and attract low-income earners.

Advantages and disadvantages of mass marketing

Advantages and disadvantages of niche marketing

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