Question one
Business to business marketing refers to the type of a market where a business trades with another business. These could be transactions between a wholesaler and a retailer or transactions between a wholesaler and a manufacturer.
The difference between this type of marketing and the business to consumer marketing is that this type of marketing involves a lot of money as compared to the other. The number of intermediaries involved is less as compared to the business to customer marketing. There are various channels involved in business to business marketing (Kerin, 2013). These channels include;
This refers to a process where business transactions are conducted through the internet. It involves access to the source organization website where all the items on sale are paraded and the entire commencement and closing of the transaction takes place through the internet.
Trade shows
This is also another channel that involves provision of a platform where businesses showcase their products to enable other businesses to purchase from them. This is normally common for those businesses that operate under a similar industry.
Industrial distributors
This is a channel whereby a firm supplies products to government institutions, agencies or any other business. However the products supplied are not normally for resale.
Advertising
This is whereby a business advertises the products it deals with through mass media. This involves the use of print media, television, radio etc. This type of marketing could involve the setting up of call centres. When it comes to B2B marketing the process will require more interactions as compared to business to consumer marketing.
The recommended channels
This is the most efficient channel since it involves least cost. Other than internet charges, which are minimal due to the advancement of the internet technology in the United Kingdom, the other costs that could be incurred are the transportation costs after a deal is closed. This channel will enable businesses to reach a wider customer base as compared to other channels. For business to business transactions, the relationship does not end after the closure of just a single deal but there is room for future interactions (Hutt, 2013).
Trade shows
This channel will be most appropriate for those businesses in the industry where printers are manufactured. Though it will involve international travel, it is appropriate since it will involve face to face negotiations, which are more effective as compared to over the telephone negotiations. Another advantage of this channel is that customers normally get a better deal during trade shows as compared to normal trade days. This company will therefore manage to increase its sales since a low price will most definitely translate to increased sales thus more profit (Kerin, 2013).
Advertising
The company should use international mass media promotions as these will attract more businesses from all over the world. I would highly recommend the use of international celebrity advertising as this will be more eye catching as compared to any other type of advertising.
Question two
- Introduction
Consumer decision making process refers to the activities undertaken by a consumer regarding a transaction before making the transaction, after the transaction as well as during the transaction. Business decision making process on the other hand refers to the activities undertaken by a business when performing its various functions. The decision making process of a business involves various factors and it is therefore more complicated (Hutt, 2013).
Differences between consumer decision making process and business decision making process
- Complexity
Consumer decision making process is simple since it involves the consumer and his or her needs. Business decision making process involves various stakeholders and it is therefore complex and needs a lot of references and consulting.
- Buying
Businesses plan their purchases in advance while consumer can engage in impulse buying. A business that sells to both business and consumer customers should be structured in a way that it can accommodate both impulse and planned purchases.
- Decision maker vs buyer
A consumer is the ultimate buyer of the product he or she needs. In the case of a business the planned purchases must go through an approval process and the buyer of the product is normally a purchasing agent who acts on behalf of the business (Kerin, 2013).
- Support contracts
Business requires support contracts for accounting purposes. Consumers on the other hand must not require support contracts though this does not nullify the importance of support contracts to the consumers. These contracts could be of assistance when purchasing certain items (Hutt, 2013).
- Relationship history
A consumer chooses the business to purchase from based on the comparison of prices between different sellers and hardly on the nature of the relationship he or she have with the different sellers (Hutt, 2013). Businesses on the other hand will purchase from those vendors with whom they have a relationship history with.
- Time
Business decision making process is lengthy since it involves a number of individuals therefore tedious due to consultation. Consumer decision making process is a concern of the consumer alone. This process is therefore fast and consumes very little time (Kerin, 2013). For instance, a consumer requiring a printer will just prepare the amount needed and walk into a printers shop and purchase one. A business in need of a printer will go through the process of approval.
- Cost
Business decision making process is costly since it entails cost such as directors sitting allowances. Consumer decision making only involves the consumer alone and therefore there are no cost involved.
- Steps involved in decision making
In consumer decision making process the consumer has to undergo 5 major steps before making his purchases. However a business decision making process is more sophisticated since it involves 8 major steps that each business has to embrace.
- Appointment of the purchase team
Under the business decision making process there is a need to appoint a purchase team that will be involved with the evaluation of the available options whereas under consumer decision making process the consumer does not need any purchase team since a consumer purchases want need (Kerin, 2013).
- Budget financing
Businesses may purchase products that require financiers especially if the products are expensive therefore, the decision making process will be tedious it will involve a visit to the financier’s office whereas consumers purchases are in most instances out of pocket purchase.
- Publicity
In most business purchase the business will be required to indicate all its purchases and acquisitions in its financial statements and listed businesses will be required to avail these financial statements for the public to see. However in consumer decision making process, this does not apply since it’s an individual decision, which will not have any public consequences (Hutt, 2013).
References
Hutt, Michael D, and Thomas W. Speh. Business Marketing Management: B2b. Australia: South-Western, Cengage Learning, 2013. Print.
Kerin, Roger A, Steven W. Hartley, and William Rudelius. Marketing. New York, NY: McGraw-Hill/Irwin, 2013. Print.
