the-nature-of-marketing consumer-and-industrial-marketing

The classification of products

Consumer goods

• Consumer goods and services are those that are produced for sale to households and to individuals

• They include

  • Non-durable convenience goods

    • Goods that are used up quickly and bought frequently, such as bread, milk, or newspapers

  • Durable goods

    • Products that last a long time and are used repeatedly, such as furniture, cars, or smartphones

  • Speciality goods

    • Unique or high-end products that customers actively seek out, like designer clothing, luxury cars, or rare watches

Industrial goods

• Industrial goods and services are those that are produced for sale to other businesses

• They include

  • Raw materials

    • Natural resources used at the start of the production process, like timber, crude oil, or cotton

  • Components

    • Parts or pieces that are used to make a finished product, such as tyres for a car or microchips for a phone

  • Capital equipment

    • Large, expensive machines or tools used to produce goods and services, such as factory machinery or delivery vehicles

  • Business services and utilities

    • Essential services that businesses pay for but do not produce themselves, including electricity, internet, or legal advice

Marketing in B2B and B2C markets

• When selling products or services, businesses need to understand whether they are targeting consumers (B2C) or other businesses (B2B)

• Both involve making a sale, but there are significant differences that affect

  • How products are marketed

  • How decisions are made

  • How relationships are managed

Key marketing differences in B2B and B2C markets

• Sales volume and order size

  • In B2C markets, customers tend to make smaller, one-off purchases

  • In contrast, B2B customers often buy in larger volumes and place regular, repeat orders

    • E.g., a homeowner may purchase a single chair, while a hotel might order 200 chairs to furnish its new premises

• Buying process and decision-making

  • The B2C buying process is usually quicker and influenced by emotions, branding, or price

  • B2B purchases involve a more complex and formal process, often requiring approval from several people

    • E.g., a shopper might buy a shampoo because they like the scent, while a supermarket chain would compare suppliers and negotiate prices before choosing which shampoo to stock

• Marketing and promotion

  • Marketing to consumers often focuses on emotional appeal, brand image and convenience

  • However, in B2B markets, the focus is more on product features, cost-effectiveness, and long-term value

    • E.g., a fashion brand may use social media influencers to promote its clothes to consumers, while a software company might promote its product to businesses through trade fairs and online demonstrations

• Customer relationships

  • B2C relationships are often short-term and based on single purchases

  • B2B relationships tend to be long-term, built on trust, and involve regular communication

• Price sensitivity and customisation

  • Consumers in B2C markets are often more sensitive to price changes and tend to look for deals or discounts

  • B2B customers are usually more focused on value for money and may require customised pricing or contracts based on the volume purchased

    • E.g., a shopper might choose a different brand of cereal because it’s on special offer, while a retailer negotiating with a wholesaler may request a lower unit price for buying 1,000 boxes at once

• Product knowledge and information needs

  • In B2C sales, customers usually need only basic information to make a decision

  • In B2B transactions, buyers often require detailed product specifications, demonstrations and performance data before making a purchase