Thursday, April 4, 2013

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

Business marketing is different in the following ways:

Buyer and marketer kin

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

In business marketing, situations where strong personal and business relationships commence between buyer and seller are not as rare. The strategic importance of many a(prenominal) purchases is too great for companies to eternally shop around when making a purchase; they indispensability to prepare absolutely sure that the product fits their needs and that it pass on 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 pretend to secure for both companies.

For example, BASF is a world leader in carpeting 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 to get goingher with Gaskell plc (British carpet shaper) to improve the quality as well as the looks and look of automotive carpets.

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Note that the relationship extends from BASF to Gaskell to GM; a putting surface 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 Gaskells 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 directly...

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