Elaborate on the three highlighted differences of consumer and business markets below. Provide your justification why that is the case for each of the markets.   Characteristic Business Marketing Consumer Marketing Market Competition Oligopolistic Monopolistic Structure Demand Derived Direct   Demand levels More volatile Less volatile   Reverse elasticity Frequent Infrequent   Total market size Larger Smaller   Size of buying unit Group Individual   Market geography Concentrated Diffuse Marketing Market segmentation Emporographics Demographics Philosophy Investment requirements Strategic Tactical   Market perspective Global Regional/national   Tactical marketing emphasis Profit performance Market share   Innovation Technology-push Demand-pull   Buyer/seller interaction Relationship Transactional   Reciprocity Frequent Rare   Key accounts Important Nonexistent   Customer education Strong Weak Buyer Behavior Customer/prospect mix Small Large   Order size and frequency Large, infrequent Small, frequent   Purchasing motives and skills   Rational, professional Emotional, self-gratifying   Contractual penalties Common Never   Buying power Strong Weak   Vendor loyalty Strong Weak   Purchase involvement Greater Smaller Purchasing Decisions Decision-making process Complex, lengthy, observable Simple, short, non observable   Purchase risk Very high Low Product/Service Mix Product Life cycle Shorter Longer   Product specification Customized Standardized   Branding Corporate family Individual product   Purchase timing Requirement planning Immediate use   Degree of fabrication Value-adding stages required. Mostly finished goods   Type of packaging Services Protective Much more, pre-and post-transactional Promotional; Less, point-of-purchase   Equipment compatibility Good Poor   Consistency of quality Critical Not vital   Industrial design Less frequent More frequent   Systems selling More frequent Less frequent Promotion Promotional emphasis Personal selling Mass advertising   Promotional objectives Preparing for sales call Positioning product and firm   Promotional themes Rational, factual Fanciful, imaginative   Role of salesperson Problem solving Persuasion   Sales promotion tools Specification sheets, catalogs, direct mail, trade shows Coupons, samples, point-of-purchase displays Distribution Mix Channel length Short, direct Long, indirect   Channel complexity Complex Simple   Product knowledge Strong Weak   Channel coverage Direct, exclusive Intensive, selective   Delivery reliability Crucial   Not critical Price Competitive bidding Common Rare   Price negotiation Common Rare   Leasing Common Rare   Product life cycle costs and benefits Important Usually ignored   Discount structures Complex Straightforward   Promotional pricing Seldom used Frequently used

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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Elaborate on the three highlighted differences of consumer and business markets below. Provide your justification why that is the case for each of the markets.

 

Characteristic

Business Marketing

Consumer Marketing

Market

Competition

Oligopolistic

Monopolistic

Structure

Demand

Derived

Direct

 

Demand levels

More volatile

Less volatile

 

Reverse elasticity

Frequent

Infrequent

 

Total market size

Larger

Smaller

 

Size of buying unit

Group

Individual

 

Market geography

Concentrated

Diffuse

Marketing

Market segmentation

Emporographics

Demographics

Philosophy

Investment requirements

Strategic

Tactical

 

Market perspective

Global

Regional/national

 

Tactical marketing emphasis

Profit performance

Market share

 

Innovation

Technology-push

Demand-pull

 

Buyer/seller interaction

Relationship

Transactional

 

Reciprocity

Frequent

Rare

 

Key accounts

Important

Nonexistent

 

Customer education

Strong

Weak

Buyer Behavior

Customer/prospect mix

Small

Large

 

Order size and frequency

Large, infrequent

Small, frequent

 

Purchasing motives and skills  

Rational, professional

Emotional, self-gratifying

 

Contractual penalties

Common

Never

 

Buying power

Strong

Weak

 

Vendor loyalty

Strong

Weak

 

Purchase involvement

Greater

Smaller

Purchasing Decisions

Decision-making process

Complex, lengthy, observable

Simple, short, non observable

 

Purchase risk

Very high

Low

Product/Service Mix

Product Life cycle

Shorter

Longer

 

Product specification

Customized

Standardized

 

Branding

Corporate family

Individual product

 

Purchase timing

Requirement planning

Immediate use

 

Degree of fabrication

Value-adding stages required.

Mostly finished goods

 

Type of packaging Services

Protective

Much more, pre-and post-transactional

Promotional; Less, point-of-purchase

 

Equipment compatibility

Good

Poor

 

Consistency of quality

Critical

Not vital

 

Industrial design

Less frequent

More frequent

 

Systems selling

More frequent

Less frequent

Promotion

Promotional emphasis

Personal selling

Mass advertising

 

Promotional objectives

Preparing for sales call

Positioning product and firm

 

Promotional themes

Rational, factual

Fanciful, imaginative

 

Role of salesperson

Problem solving

Persuasion

 

Sales promotion tools

Specification sheets, catalogs, direct mail, trade shows

Coupons, samples, point-of-purchase displays

Distribution Mix

Channel length

Short, direct

Long, indirect

 

Channel complexity

Complex

Simple

 

Product knowledge

Strong

Weak

 

Channel coverage

Direct, exclusive

Intensive, selective

 

Delivery reliability

Crucial

 

Not critical

Price

Competitive bidding

Common

Rare

 

Price negotiation

Common

Rare

 

Leasing

Common

Rare

 

Product life cycle costs and benefits

Important

Usually ignored

 

Discount structures

Complex

Straightforward

 

Promotional pricing

Seldom used

Frequently used

 

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