b2b vs b2c
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BUSINESS MARKETSVS.
CONSUMER MARKETS
04/09/2023 MBA, TERI University 2
Participation in market place
Fewer purchasers More number of buyers
More than one person is involved in buying decisions; controlled by their companies
Buying decision
Individual customer; fewer stakeholders
Support
Technically and commercially aware individuals
Peer consulting
Bu
sin
ess M
ark
ets
Con
su
mer M
ark
etsInfluence/Risk
Post purchase blame or credit can be shared;companies might be less affected by what other companies are buying
Greater perceived risks;
Individuals get more affected by what other consumers are buying
04/09/2023 MBA, TERI University 3
Participation in market place
Fewer purchasers More number of buyers
More than one person is involved in buying decisions; controlled by their companies
Buying decision
Individual customer; fewer stakeholders
Support
Technically and commercially aware individuals
Peer consulting
Bu
sin
ess M
ark
ets
Con
su
mer M
ark
etsInfluence/Risk
Post purchase blame or credit can be shared;companies might be less affected by what other companies are buying
Greater perceived risks;
Individuals get more affected by what other consumers are buying
04/09/2023 MBA, TERI University 4
Summary
Perspective Business Markets Consumer Markets
Participation in market place
Fewer purchasers Large no. of buyers
Buying decision more than one person is involved in buying decisions
Individual customer
Limited stakeholders
Support Technically and commercially aware individuals
Knowledge levels are high
Look to their peers
Knowledge levels are low
Influence/Risk More widespread Greater individual risk
04/09/2023 MBA, TERI University 5
Market Characteristics
04/09/2023 MBA, TERI University 6
Industry Consumer
Mass Advertising.
Normally focussed on technical media. Not normally TV.
Often suitable and used including TV, Radio and mass circulation print advertising.
Direct Mail. Often very suitable due to small numbers
Sometimes not viable due to high numbers & low value.
Face to face selling by specialists.
Often very suitable for company specialists
Rarely suitable for individual items to end users.
Hospitality Very suitable because of often high business value per decision maker
Not often used
Editorial. Very suitable in targetted print media.
Sometimes suitable.
Publicity. Suitable Suitable
Discounting. Often to reward volume customers.
Discount sales are often used for sales promotion.
Specialist exhibitions and or trade shows.
Often used for high and lower value items.
Mainly suitable for higher value items unless selling consumer wares to retail buyers.
Point of sale displays and communications.
Not often used Extensive use.
04/09/2023 MBA, TERI University 7
Industry Consumer
Direct sales force Often used in industry to sell direct to buyers and specifying engineers.
Used where needed to sell to resellers more than to actual consumers.
Wholesalers Sometimes used. Often used in chain before retailers especially in export markets.
Distributors Often used. Sometimes used.
Catalogues Form part of distribution chains.
Form part of distribution chains.
Commissioned Agents Often used. Sometimes used.
E-Commerce via Internet
Becoming more prevalent to cut out the middle man and reduce stocks.
Becoming more prevalent at retailers, less so for manufacturers because of their narrow ranges.
Multi-level marketing including party plan.
Rarely used. Used for some specialities.
Problem Recognition
Information Search
Evaluation of Alternatives
Purchase Decisions
Post purchase behavior
Problem Recognition
Need description & Product Specification
Supplier Search
Proposal Solicitation
Supplier selection
Order Routine Specification
Performance Review
Stages of buying process
Industry Consumer
Source: Marketing Management: kotler
Culture
Sub-culture
Socialclass
Social
Referencegroups
Family
Rolesand
status
Personal
Age andlife-cycle
OccupationEconomicsituationLifestyle
Personalityand
self-concept
Psychological
MotivationPerceptionLearning
Beliefs andattitudes
Buyer
Factors influencing consumer behavior
Culture
EnvironmentalEconomic, Technological, Political, Competitive
OrganizationalObjectives, Policies, Procedures,
Structure, & Systems
OrganizationalObjectives, Policies, Procedures,
Structure, & Systems
InterpersonalAuthority, Status, Empathy &
Persuasiveness
InterpersonalAuthority, Status, Empathy &
Persuasiveness
IndividualAge, Education, Job Position, Personality &
Risk Attitudes
IndividualAge, Education, Job Position, Personality &
Risk Attitudes
BuyersBuyers
Factors influencing business buyer behavior
THANK YOU!Group AAnandBansuriRashi