Week 4: EOC : Consumer Vs. Buisness Marketing

The most obvious difference between the two concepts is that business marketing tends to concentrate on the sale of goods and services between businesses. On the other hand consumer marketing is just that…it tends to concentrate on the sale of goods and services to consumers.

Consumer buyer behavior refers to the buying behavior of final consumers—individuals and households that buy goods and services for personal consumption. All of these final consumers combine to make up the consumer market. (Marketing An Introduction: page 4 )

Despite this long history, Only in the last twenty five years has the real understanding of the concepts of business marketing take place. During this period various professionals defined the characteristics of business marketing and defined rules which would shape marketing strategy. Ordinary entrepreneurs now had an opportunity to apply some of these concepts to their own organizations with success by data collecting on demographic, psychological and social factors.

Cultural factors exert a broad and deep influence on consumer behavior. The marketer needs to understand the role played by the buyer’s culture, subculture, and social class.A consumer’s behavior also is influenced by social factors, such as the consumer’s small groups, family, and social roles and status.Two or more people who interact to accomplish individual or mutual goals.(Marketing An Introduction: page 6, 12,13 )

Consumer marketing has been visible to the public, both formal and informal. Seeking the key to consumer's buying decisions and how to control this power.  Furthermore it has been repeated over and over again to the extent that the consumers have entered some form of clandestine pact with the retailers to develop conventions and systems that ease the path towards trade.

A person’s buying choices are further influenced by four major psychological factors: motivation, perception, learning, and beliefs and attitudes.(Marketing An Introduction: page 23)

 Finally, Issues such as credit and barter as well as the cycles of pricing are quite familiar to most consumers, making them less comfortable with the concepts of business marketing. This tends to be the domain of  management and long standing retailers. However because of the inter-connectivity of economic activity, there is scope for both types of marketing to be working together. In layman's terms, give the consumer what they want and they will show brand loyalty, hence good profit margins.