By definition, business marketing is the practice of selling products or services by individuals or organizations to other business entities either to use the products or services for their own business operation, or to use it as components in making their own product, or to resell them. While consumer marketing means selling directly to consumers or the individual end-users.
What is the link between business and consumer markets?
Although, there are a few factors that differs business and consumer markets, there is a link between them. Let’s put it this way, a demand in the consumer market generates a demand in the business market. For example, a demand for food like burgers creates a demand for its components like bread, patties, cheese, ketchup, mayo, etc., which consequently produces a growing demand for flour, meat and other agricultural products. It’s like a ripple effect. A growing consumer demand for a certain product generates further business demands to supply components for such product. Thus a country’s economy experiences growth as its citizens increase their spending power.
Business marketing vs. Consumer marketing
Business marketing means selling products or services to another business entity while consumer marketing means selling directly to the consumers. Although the difference might appear quite obvious, let us try to digest more on the key differences between the two.
First, business owners do not spend their own money. They may own the business but they must separate personal expenses from business expenditures. Thus, there’s a great need to justify purchases before giving it an approval. Most often than not, major procurements will still have to undergo a formal and strict process of biddings, budget reviews, and bargaining before they are actually done. And sometimes you even have to talk to a number of different decision-makers and various key officers of the company in order to market your product to certain business entity. Thus business marketing is quite complicated than consumer marketing. While consumer marketing is simple and straightforward.
Business to business marketing strategy (B2B)
Business to business (B2B) marketing strategy is larger in scale compared with business to consumer (B2C) marketing strategy. B2B marketing strategy has to consider numerous factors like branding, product/service development, target market, pricing, promotions, and sales and distribution.
How big is business marketing?
According to a study in 2003, sponsored by the Business Marketing Association, business-to-business marketers in the United States spend an estimate of $85 billion dollars a year in goods and services promotion. Well, just imagine the fact that there is such a thing called Business Marketing Association is enough evidence to the enormity of this industry.
If you are planning to start a small business, a strong business marketing plan should be made. You may schedule an appointment with Dr. Jackie DiPofi to guide you at (334) 467-8847 or fill out a contact form request for her to get in touch with you or if you wish to purchase her RAMPS Small Business Marketing Plan.