Consumer and Business Markets
Business markets are task focused, while consumer market buyers may have an emotional factor when making purchase decisions. Moreover, in both business and consumer markets, the purchaser often does not have the final authority to make purchase decisions. In the consumer market, marketing methods may include advertising and promotions, while business markets can include necessary meetings before the final transaction. In addition, once a business purchases, there is the possibility of generating a brand loyalty for future purchases. In a consumer market, the consumer may base their future purchase on price, availability, and those continued emotional and personal factors. Furthermore, businesses often purchase in larger volumes. Consequently, the business market will likely generate more sales per customer.
In creating a marketing strategy, product managers should be directly involved. To build a successful marketing strategy, the marketer should understand the consumers’ daily life and target their emotional needs. Consumers often purchase based on influences such as culture, social, and personal factors. Marketing efforts should focus on building an emotional connection with the consumer to satisfy the consumers’ needs. In addition, marketers need to be aware of the consumers’ perception of the brand. Marketers can use integrated marketing communications to help with observing the marketing process. The company could focus on marketing to consumers from home by focusing more on their online marketing efforts. Consumers enjoy a comfortable setting when shopping, including having the ability to shop from home. Businesses prefer face-to-face sales meetings. To gain more customers within the tradesmen market, the marketer can advertise in electronic media and focus on e-commerce.
Consumer market purchases are likely made by individuals. An example of a consumer market is a husband wanting to purchase a new home. In order to do so, he would need to get his wife’s approval before making the decision. His wife will likely introduce personal factors, which may hinder his decision such as kids, bills, and other priority items. Consequently, he will not be able to make the purchase immediately because of these personal reasons. The marketer should create a campaign that addresses these personal concerns. The strategy could focus on the personal and family benefits that a new home would produce. It should mention the affordability, safety, and other family oriented concerns and then provide positive solutions for those concerns. In regards to a business market, this same strategy could be used to focus on the business benefits of purchasing a new business. The business marketer could showcase a better location, statistics surrounding the local traffic, and the return on investment. Within the business market, the purchase decision is made by many individuals and groups. A marketer needs to be aware of who has the buying power within the group. Once this is determined, the marketer should address each of the individuals’ concerns.
When determining the market, the business needs to know not only who are buying and why they are buying the product or service. The market purchasing decision for a business may be easier as there is a larger need. For consumers, there are other factors in to consider such as financials, family, personal, and priority items for example. For large purchases, there often needs to be a collective decision made by the family. Business markets often focus more on sales and purchases that are sold directly to other businesses, which may use those products to re-sale directly to the consumer. Consumer markets are markets where the consumer purchases an item to use for their own use. The strategies necessary for these markets are determined based on their needs and wants of the market. In a business market, purchases may also involve a collective decision, but there may also be a larger plan ahead for the company and the purchase may be one small item on a larger scale.
Within both business and consumer markets, the market must always be aware of the service strengths and needs of the purchasing organization. The products must provide value to the target market. To target consumers, the organization could use mass marketing and advertising methods to reach a wider audience base. Businesses are likely to also purchase larger volumes of items compared to consumers. Business markets may also have purchasing agents who are responsible for buying company items. These agents may already know the price they are looking to spend. In targeting the consumer markets, marketing agents should look to move online into e-commerce as it gives consumers the opportunity to make purchases directly from home or while on the go. Businesses often use more traditional purchasing methods such as face-to-face meetings. If market agents do desire to grow their online market, they have many options, which include services from Facebook, Godaddy, Google, and thousands of tools that can assist with targeting their desired consumers.
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Dr. Elijah Clark (August 18, 2022). Consumer and Business Markets [Web log post]. Retrieved from https://elijahclark.com/consumer-and-business-markets/