What is the Difference Between an Industry and a Sector? By Chad Langager Updated January 10, — 5:
Share on Facebook Small businesses market their products and services to different types of customers. Recognizing the differences between markets -- consumers, government agencies, other businesses, services and intermediaries, such as retailers or distributors -- makes it easier for companies to choose the right strategy for pitching their products or services.
Companies can refine their marketing further by dividing the major business markets into sectors, such as financial services, manufacturing or automotive.
Consumers In the business-to-consumer market, known as B2C, companies sell their products to individual consumers through retail outlets or online stores. Consumers buy products such as food, clothing, electrical goods, magazines and cars for personal use and pay for them at the point of sale.
Businesses aim to influence consumers by advertising or sales promotions at the point of sale, such as discounts or special deals. Other Businesses Companies that sell products to other businesses operate in the business-to-business market, or B2B.
They may sell materials or components that other companies use to manufacture their own products, or they might sell finished goods, such as office equipment or machine tools. Companies market their products through a sales team or via intermediaries, such as distributors.
Although a purchasing manager is responsible for making the final buying decision, other employees, such as technical managers, manufacturing managers or finance directors, may influence the choice of product and supplier.
Government Agencies Government agencies represent an important business market. In the business-to-government, or B2G, sector, companies typically bid for contracts to supply products to local, state or federal agencies.
Government agencies deal with approved suppliers who must meet standards, such as quality accreditation, and go through a complex bid process. Companies market their products to government agencies through a direct sales force or by creating dedicated government pages on their websites.
Intermediaries Companies that sell to both consumers and other businesses may market their products through intermediaries, such as retailers, wholesalers or distributors.
To build business through these channels, companies operate a marketing program focused on intermediaries. They must encourage intermediaries to stock their products through incentive programs and support them with marketing collateral, such as advertisement templates or point-of-sale display material.
Services Market Companies that offer services also market them to consumers, other businesses and government agencies. However, marketing services requires different skills and strategies and therefore represents a different business market. Companies offer consumers services, such as plumbing, hairdressing or landscaping.
They may also provide professional services, such as management consultancy, accountancy or property maintenance, to other businesses or government agencies.All members in a business who become involved in such a buying process are centered to specify group – These processes and group members may vary when purchasing different kinds of products and services.
Essential Of Marketing Management -Sherlekar S.A. DIFFERENCE BETWEEN CONSUMER BUYING & INDUSTRIAL BUYING. For marketers, the selling environment of business markets present uniquely different circumstances when compared to selling to consumers.
At the beginning of this tutorial, we saw two ways in which consumer and business markets differ. Business markets are more likely to be price driven than brand driven, and.
There are many difference between business markets and consumer markets. Some of the differences are as mentioned in this article. While the business market involves businesses selling products to other businesses, the consumer market involves businesses selling products to other consumers.
ADVERTISEMENTS: Read this article to learn about the differences between “Business Markets” and “Consumer Markets” – Explained! There are significant differences between consumer and business markets.
It is important to understand and appreciate the difference to be able to design appropriate strategies for the business markets. There are practices in consumer markets . 10 Fundamental Differences Between Consumer & Business Marketing The source of these differences is the complex and interdependent relationships between business buyers and sellers and their.
Read this article to learn about the differences between “Business Markets” and “Consumer Markets” – Explained! There are significant differences between consumer and business markets.
It is important to understand and appreciate the difference to be able to design appropriate strategies for the business markets.