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B2B and B2C Marketing - Assignment Example

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The author of the paper concludes that the demand in the B2B market varies widely from that in the B2C market. Moreover, the B2B market demand is more inelastic, lesser affected by the short term price fluctuations and based on rational decision making. …
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B2B and B2C Marketing
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Download file to see previous pages Thus, business buyer demand is derived demand. It means that there is an impact of all the determinants of individual demand on the derived demand of the business consumers. Moreover, it also means that it may be possible in the consumer market to mold the demand but it is rarely possible to mold the demand of business consumers. The demand in the business market is more inelastic than the consumer market. It means that the demand of the consumer market is not affected by short-run market price fluctuations.
The business market contains fewer but larger customers but in the individual consumer market, the number of buyers is large but average quantity they purchase is small. Moreover, the business market is geographically more concentrated as compared to individual customers.
The promotional techniques used in marketing for business are different from that for individual customers. For B2B marketing, usual techniques are direct sales, trade discounts, personal networking etc. However, for B2C marketing, the promotional techniques are advertising and other above the line (ATL) marketing techniques.
Since the buying decision is very crucial and any error in that decision may cause a great loss, the buyers of the B2B are more rational, whereas, many consumer buying decision is derived by emotional appeals.
The example we have chosen to demonstrate the difference between B2B and B2C is the automotive industry. The automotive industry may serve both the purposes, B2B and B2C. If an automotive industry is manufacturing cars to be sold to the individual consumers, it is B2C market operation, and however, if ACE Car Rental, a car rental service provider, purchases a car from the same vendor (Toyota Motor Corporation Australia). In that case, it would be the B2B market.  ...Download file to see next pagesRead More
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