Consumer vs. Business Marketing

Consumer vs. Business Markets

“In some ways, business markets are similar to consumer markets. Both involve people who assume buying roles and make purchase decisions to satisfy needs. However, business markets differ in many ways from consumer markets. The main differences are in market structure and demand, the nature of the buying unit, and the types of decisions and decision process involved.” (Marketing: An Introduction by Armstrong & Kotler)

While the two markets are similar in the sense that both exist to meet an ultimate consumer need. There are many factors that play into how the two markets carry out those needs to their customers. The consumer markets have a  great amount of customers to tailor their marketing strategies to. Consumer markets aim to sell individual to a handful of units to its millions of customers on a daily basis.  It is vital for consumer markets to have an updated understanding of what affects consumer behavior in its many different forms. 

“The marketer needs to understand the role played by the buyer’s culture, subculture, and social class.” (Marketing: An Introduction by Armstrong & Kotler) The consumer market is made up of millions of individuals connected to  a culture, subculture or social class in one way or another. Catering to cultural needs can be as simple understanding the type of cheese a culture uses to something as complex as the ideals that exist within them that drive them to spend money on certain things.

“The business marketer normally deals with far fewer but far larger buyers than the consumer marketer does.” (Marketing: An Introduction by Armstrong & Kotler) Unlike the consumer market, the business market caters to a smaller number of customers. Though their customers don’t purchase daily,  a bigger dollar amount is seen at purchase as the quantity of the purchase is generally bigger.

“Far from being cold, calculating, and impersonal, business buyers are human and social as well. They react to both reason and emotion.” (Marketing: An Introduction by Armstrong & Kotler) Today’s business marketer is in tune with the wants and expectations of the consumer markets.

In addition to understanding factors of consumer behavior, business marketers must also understand the major influences of business buyer behavior.   “Business buyers are heavily influenced by factors in the current and expected economic environment, such as the level of primary demand, the economic outlook, and the cost of of money. Another environmental factor is shortages in key materials.”(Marketing: An Introduction by Armstrong & Kotler)