Thursday, February 10, 2011

Difference between Industrial and consumer marketing

Couple of days before I came across with a question “What is the difference between industrial and consumer marketing, so I tried to explore it and as per my opinion following are the differences:
Industrial marketing is the marketing of goods and services from one business to another (B2B "Business to Business").. Industrial goods are those which are used in Industry for producing a Different end product from one or more raw materials. The word "industrial" means machinery run by power to produce goods and services.
Consumer marketing is the marketing of goods and services from business to the consumer (B2C "Business to Consumer").

This difference can be better understand by the following comparison:

S .N.
Industrial Market
Consumer Market
Market Characteristics
ü  Geographically concentrated
ü  Relatively fewer buyer buyers
ü  Geographically disbursed
ü  Mass market
Product Characteristics
ü  Technical complexity
ü  Customised
ü  Standardized
Service Characteristics
ü  Service, timely delivered & availability very important
ü  Service, timely delivered & availability somewhat important
Buyer Behaviour
ü  Involvement of various functional areas in both buyer & supplier firms
ü  Purchase decisions are mainly made on rational/performance basis
ü  Technical expertise
ü  Stable interpersonal relationship between buyers & sellers
ü  Involvement of family members
ü  Purchase decisions are mostly made on physiological/social/ physiological needs
ü  Less technical expertise
ü  Non-personal relationship
Channel  Characteristics
ü  More direct
ü  Fewer intermediaries/middlemen
ü  Indirect
ü  Multiple layers of intermediaries
Promotional Characteristics
ü  Emphasis on personal selling
ü  Emphasis on Advertising
Price Characteristics
ü  Competitive bidding & negotiated prices
ü  List prices for standard products
ü  List prices or maximum retail price (MRP)


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