B2b vs b2c
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Thank you for the presentation. I have a few questions: 1. Could you explain more about how culture influences consumer behavior? What are some key aspects of culture that impact decisions? 2. How do reference groups influence consumers? What types of reference groups are most influential? 3. What are some differences between how personal factors like age, life stage, occupation impact business vs. consumer buyers? 4. How do organizational objectives and policies influence business purchasing decisions compared to individual consumer decisions? 5. What are some key differences in the buying process between business and consumer markets? At what stages do business buyers typically involve more people compared to individual consumers? I appreciate you taking the time to further explain these
B2b vs b2c
- 1. BUSINESS MARKETS VS. CONSUMER MARKETS
- 2. Participation in market place Fewer purchasers More number of buyers Buying decision More than one person is involved in Individual customer; buying decisions; fewer stakeholders Consumer Markets controlled by their companies Business Markets Support Technically and commercially aware Peer consulting individuals Influence/Risk Post purchase blame or credit can Greater perceived risks; be shared; companies might be less affected Individuals get more affected by what by what other companies are other consumers are buying buying 12/19/2012 MBA, TERI University 2
- 3. Participation in market place Fewer purchasers More number of buyers Buying decision More than one person is involved in Individual customer; buying decisions; fewer stakeholders Consumer Markets controlled by their companies Business Markets Support Technically and commercially aware Peer consulting individuals Influence/Risk Post purchase blame or credit can Greater perceived risks; be shared; companies might be less affected Individuals get more affected by what by what other companies are other consumers are buying buying 12/19/2012 MBA, TERI University 3
- 4. Summary Perspective Business Markets Consumer Markets Participation in market Fewer purchasers Large no. of buyers place Buying decision more than one person is Individual customer involved in buying decisions Limited stakeholders Support Technically and Look to their peers commercially aware individuals Knowledge levels are high Knowledge levels are low Influence/Risk More widespread Greater individual risk 12/19/2012 MBA, TERI University 4
- 5. Market Characteristics 12/19/2012 MBA, TERI University 5
- 6. Industry Consumer Mass Advertising. Normally focussed on technical Often suitable and used media. Not normally TV. including TV, Radio and mass circulation print advertising. Direct Mail. Often very suitable due to small Sometimes not viable due to numbers high numbers & low value. Face to face selling Often very suitable for company Rarely suitable for individual by specialists. specialists items to end users. Hospitality Very suitable because of often high Not often used business value per decision maker Editorial. Very suitable in targetted print Sometimes suitable. media. Publicity. Suitable Suitable Discounting. Often to reward volume Discount sales are often used for customers. sales promotion. Specialist Often used for high and lower Mainly suitable for higher value exhibitions and or value items. items unless selling consumer trade shows. wares to retail buyers. Point of sale Not often used Extensive use. displays and communications. 12/19/2012 MBA, TERI University 6
- 7. Industry Consumer Direct sales force Often used in industry to Used where needed to sell sell direct to buyers and to resellers more than to specifying engineers. actual consumers. Wholesalers Sometimes used. Often used in chain before retailers especially in export markets. Distributors Often used. Sometimes used. Catalogues Form part of distribution Form part of distribution chains. chains. Commissioned Agents Often used. Sometimes used. E-Commerce via Internet Becoming more prevalent Becoming more prevalent to cut out the middle man at retailers, less so for and reduce stocks. manufacturers because of their narrow ranges. Multi-level marketing Rarely used. Used for some specialities. including party plan. 12/19/2012 MBA, TERI University 7
- 8. Stages of buying process Industry Consumer Problem Recognition Problem Recognition Need description & Product Specification Information Search Supplier Search Proposal Solicitation Evaluation of Alternatives Supplier selection Purchase Decisions Order Routine Specification Post purchase Performance Review behavior Source: Marketing Management: kotler
- 9. Factors influencing consumer behavior Culture Social Personal Culture Reference Age and Psychological groups life-cycle Occupation Motivation Sub- Perception culture Family Economic Buyer situation Learning Lifestyle Beliefs and Social Roles attitudes class and Personality status and self-concept
- 10. Factors influencing business buyer behavior Environmental Economic, Technological, Political, Competitive Organizational Objectives, Policies, Procedures, Structure, & Systems Interpersonal Authority, Status, Empathy & Persuasiveness Individual Age, Education, Job Position, Personality & Risk Attitudes Buyers