Marketing refers to the activities required to get a customer to give your money in exchange for your product or service. Although many people commit the language sin of using the terms advertising and marketing interchangeably, they are not the same. Marketing consists of four key components. Product, price, distribution and promotion. Advertising is part of promotion.
Advertising refers to promotional messages paid for by a sponsor and carried in print or broadcast media. These include newspaper ads, magazine ads, trade journal ads, Yellow pages ads, directory ads, radio commercials, TV commercials, and billboards.
Business to Business marketing is designed to sell products or service to business, industry or professional rather than consumers. Ads that appear in trade journals are a prime example of business to business marketing. So are industrial catalogs.
Business marketing buying behavior is undergoing a paradigm shift as we move from our traditional focus on buying center choice to an expanded view of buyer-seller interactions that includes long term relationships and networks. Transactional behavior will still be an important part of buyer – seller interaction, but more and more the critical purchased elements are becoming part of a deliberate strategy of creating an alliance between the supplier and the purchasing firm.
Strong relationships between buyers and sellers have long been a part of buying behavior. These relationships have grown over time in a natural way as the individuals involved developed personal relationships and as the exchange process was beneficial to both parties. Today, the difference is that relationships are part of the strategic plan of the firm. Whereas in the past, time and personal relationships let the business relationship evolve, we now are seeking to create strategic partnerships at an ever increasing rate. With this rapid movement into relationships, it seems likely that the failure rate will increase.
A global marketplace pushes firms to be a world-class leader which requires the highest quality at competitive prices. To achieve these goals, companies have realized that having a very large number of suppliers makes it difficult to manage the relationships so as to focus on increased quality and reduced costs and project development time.
Marketing involves three groups: product/market management, marketing communications, and sales. typically, product management exists to manage the product development, pricing, technical support, and so on, of the products and/or services the company offers to the market.
There are four commonly accepted phases of the customer life cycle.
- Customer acquisition
- Customer growth and retention
- Customer loyalty
- Customer reactivation.
The old selling model was very linear. Marketing communications was primarily involved in customer acquisition by developing communications that generated inquiries. In recent years this lead qualification as well. After that, the sales group took over and did everything else.
Business-to-business marketing is designed to sell products or services to business, industry, or professionals rather than consumers. Ads that appear in trade journals are a prime example of business-to-business marketing. So are industrial catalog.
People often think of business-to-business advertising as “technical” advertising, but not all business to business products are technical. A catalog selling paper clips, envelopes, and other office supplies to business offices is business to business, but hardly technical.
Consumer marketing is designed to sell products or services to individual consumers, families and households. Examples include most of the TV commercials, radio commercials, and newspaper ads you see, hear, and read every day . Victoria’s Secret catalogs are definitely consumer marketing, as are the sneaker commercials featuring basketball stars.
Joe Lane, a specialist in business to business marketing, defines consumer advertising as “simple thoughts for simple folks.” But that’s an overstatement. While it is true that most consumers advertising deals with simple products – soap, detergents, beet, and hamburgers – not all of it does. Brochures written to describe cars, VCR, PCs, and stereo systems, for example often get quite technical in their discussions of features and functions.
Business to Business Marketing Relationship, Systems and communication (2005) Fill and Fill, Prentice Hall
Business Marketing Management (2007)Hutt and Speh, Thomson
Business To Business Direct Marketing: Proven Dire By Robert W. Bly 1998
Consumer Behavior in Asia: Issues and Marketing Practice By Tsang-sing Chan 1999