Business marketing is radically different from consumer marketing. Why is this so?

Essay by poisonivUniversity, Bachelor's March 2005

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Business marketing is different in the following ways:

Buyer and seller relationship

In consumer markets, there are a few industries where close personal relationships exists between buyers and sellers. Perhaps in those instances where personal selling is the most important element of the marketing mix and where customer service is also important, relationships between buyer and seller may exist. These situations however are rare.

In business marketing, situations where strong personal and business relationships grow between buyer and seller are not as rare. The strategic importance of many purchases is too great for companies to always shop around when making a purchase; they need to make absolutely sure that the product fits their needs and that it will be available when needed at the right cost. Therefore, many companies enter into long-term contracts, build relationships that enable buyers and sellers to plan jointly, and work to secure for both companies.

For example, BASF is a world leader in carpet manufacturing. General Motors is constantly looking for ways to make cars and truck less expensive to manufacture, as well as increasing the value delivered to consumers. BASF and GM work together with Gaskell plc (British carpet manufacturer) to improve the quality as well as the looks and life of automotive carpets. Note that the relationship extends from BASF to Gaskell to GM; a common element of business marketing is deep relationships between organizations at various levels of the industry. From the perspective of BASF, it makes sense to have strong relationship with its customer, Gaskell. But it also make sense for BASF to include Gaskell's customers so that they can all work together.

Shorter distribution channels

In most cases, distribution channels do not include anyone between the manufacturer and the customer who uses the product, or user. Many manufacturers sell...