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Business and Consumer Markets

To carry out really successful marketing strategy, there are two main directions which require serious attention – business and consumer markets. In this order, today we are going to outline the main differences between these segments. It is important to point out the features and definitions of two terms for comprehensive comparative analysis providing. Thereby, it should be mentioned that consumers market can be determined as all the individuals and households who purchase goods and services for personal use (Suttle). Mostly, it is featured by “final byer” priority, concentrated around such characteristics as demographic, behavioristic, psychographic and geographic (Bly). In its turn, the business market contains profit making organizations only (retailers, industries etc.), which are interested in reselling or making another production (Dictionary of marketing terms). Going to note its main features, next items have to reminded – focus to organizations, aim to make profit, not affected by price demand, professional purchases, rationality, close relationship between seller and buyer (Chaudhary).

This was the main background about two markets. Now, let’s go directly to differences between them. In this order, it should be mentioned that several approaches can be reminded here. For example, Janice Jenkins claims in next way: “The nature of business purchasing is influenced by multiple decision makers, professional buyers and the potential for long term relationships. Businesses generally focus more on a products functionality than anything else. Businesses also have the resources to purchase from international markets” (Jenkins). In addition, this author outlines that business market is different with logical decisions making, instead of emotional purchase what is inherent for consumer one. Previous quote seems to be extremely meaningful idea about analyzed segments. However, some additions can also be mentioned. Therefore, we can list the differences between two markets on the basis of demand. Eventually, they look in next way: 1) The demand of business market is directly formed by final consumers demand. In this aspect, the business market is less sensitive to price growing; 2) The amount of final consumers is larger than the amount of intermediates; 3) The demand on consumer market is determined by geographical concentration; 4) Business market is featured by much larger distribution channels (Wilks). So, we mentioned pretty comprehensive list of differences between business and consumer markets. However, to get the idea more clearly we are able to use one simple tip. In this aspect, Andrew Thomas talks in this way: “A simple method of identifying the difference between these two markets is to address the following questions: Who is buying the goods? Why is the purchase being made?”(Thomas). Considering previous analysis, addressing these two questions will help to distinguish whether market is business or consumer.

The analyzed differences of two consuming segments are important to provide proper and professional marketing strategy. It worth being mentioned that business marketing seems to be much more complicated in comparison to consumer one. At first hand, this fact is determined by the necessity of final consumer interests considering all the same. Janice Jenkins is incredibly great with the next thought about previous point: “The biggest strategy difference between the two types of marketing is touting the benefits for your business client, while also touting the benefits for your business clients customer. Instead of only thinking about the end-user, you need to convey how your product will help the business client to help their customers” (Jenkins).

References

Bly R. (2008). The 7 Key Differences Between business-to-business and consumer marketing. Retrieved from http://www.nmoa.org/articles/dmnews/7differencesofbtobandconsumermarketing.htm
Chaudhary U. (2011). Definition of business market and its features. Retrieved from http://mostbeautifulplacesandcultures.blogspot.com/2010/04/definition-of-business-market-and-its.html
Dictionary of marketing terms. (2000). Retrieved from http://www.allbusiness.com/glossaries/consumer-market/4965586-1.html
Jenkins J. (2008). Business Marketing Versus Consumer Marketing. Retrieved from http://www.articlesnatch.com/Article/Business-Marketing-Versus-Consumer-Marketing/358450
Suttle R. (2009). Characteristics of Consumer Markets. Retrieved from http://smallbusiness.chron.com/characteristics-consumer-markets-1418.html
Thomas A. (2004). Business vs Consumer Markets. Retrieved from http://toolkit.smallbiz.nsw.gov.au/part/1/1/5
Wilks D. (2007). Difference between business markets and consumer markets. Retrieved from http://www.marketing91.com/difference-between-business-markets-and-consumer-markets/