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
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 |
|
|
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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