How does building a brand in a business-to-business context
different from doing so in the consumer market?
When companies market (company A) their products to other business (Company B), they are looking to build a lasting business relationship. Company B is marketing their product and services because they know and understand what the company will need in order to operate more efficiently. When companies make purchases, it is a multi-step process that involves executive decisions and planning, company financial review (depending on the amount of the purchase), and possible sales meetings to offer demonstrations of new products (Business Marketing Association, n.d.). B2B marketing is to convert prospects into customers and build a lasting business relationship; they need to focus on relationship building and communication using marketing activities that generate leads that can be nurtured during the sales cycle (Murphy, 2007). Marketing to a company can be done through email, webcasting, newsletters, telemarketing, direct mail, and representative follow up services. Companies keep in constant contact with the business in an attempt to keep doing business with them and ensuring that any needs the company may have, they will attempt to meet or exceed. When companies decide to market to consumers, they use a different approach. The majority of the products on the market for consumers are not a necessity; companies have to use creative ways to ensure that consumers will purchase the product. The ultimate goal of B2C marketing is to convert shoppers into buyers as aggressively and consistently as possible (Murphy, 2007). Unlike how companies make decisions, consumers go off their emotions, product eye appeal, prices, discounts, and coupon usage. When consumers decided to make purchases, the buying process starts long before the actual purchase and has consequences long afterwards (Kotler & Keller, 2012). Since consumers make purchase for different reasons than
companies, consumers face a higher risk because of factors that
may not be in their control. Technology has made marketing easier and even free for some companies. When companies target consumers, they use social media, blogs, electronic coupons, and customer survey completions that offer winnings. Consumers review the advertisements and see them as a good deal, even if its for a product they dont need. To make the deal even better companies also offer loyalty rewards for frequent shoppers and buyers. Companies combine merchandise and education to consumers to keep the coming back (Murphy, 2007). This marketing technique lets the company know that the customer will return to make purchases and even purchase new products when they come on the market. Business Marketing Association, n.d. Key differences between B2B and consumer marketing. Retrieved from http://www.marketing.org/i4a/pages/index.cfm?pageID=3418 Kotler. P., Keller, K. L., 2012. Marketing Management (14th ed.). Upper Saddle, NJ: Prentice Hall Murphy, D. 2007, Marketing for B2B vs. B2C similar but different. Retrieved from http://masterfulmarketing.com/marketing-b2b-vs-b2c/
What is Business to Business and business to consumer? In B2B
products and services are sold from one business to another while in B2C products and services are sold from a company to the final user. The negotiation process between the buyer and seller is more personal in business marketing; you build a product in a business-to-business context to obtain maximum profits after selling. While in the consumer market, the retailer sells the product to the market. The prices are different in both markets. Building a brand in a business-to-business context is different from doing so in the consumer market due to the nature of buyers
In the B2B, buyers are normally another manufacturers While in
the B2C, transactions occur between a company and consumers. Cisco has gained new competitors like IBM and Microsoft by entering in a new market. In order to compete against these competitors, Cisco uses the methods of both business to business and the consumer marketing. Currently, Cisco has been selling products to other businesses. B2B markets are generally small markets. Branding in B2B depends on the relationships of many different companies. This is visible in the case study when Cisco developed partnerships with Sony, Matsushita in order to co-brand its modems with Cisco logo to build brand value and recognition. Building a product in a business-to-business or consumer context has lots of differences because of different audience
How is building a brand in a business-to-business context
different from doing so in the consumer market? The Cisco case study gives some examples of strategies that the company used as it transitioned into and gained market share in the consumer market, but to get some perspective of the two markets differences consider the following quote. Consumer marketing presupposes powerful sellers and passive, inexpert buyers who can be influenced to purchase by a variety of advertising techniques. In contrast, industrial markets consist of very knowledgeable buyers (and often buyer teams) who analyze products and purchases in terms of user benefits often measured in dollars or as return on investment. GET A CUSTOM ESSAY In the case of capital equipment, the salespeople do not get to talk to the final decision-makers the board of directors. (Collins 2011) With this in mind after nearly two decades of marketing to
knowledgeable buyers who are looking at cisco products in terms
of cost and return on investment and getting these purchases approved by the companys board of directors it is a dramatic shift in product and marketing to enter the consumer market. Today, Cisco continues to acquire companies including 40 between 2004 and 2009 that help it expand into newer markets such as consumer electronics, business collaboration software and computer servers. These acquisitions align with Ciscos goal of increasing overall internet traffic, which ultimately drives demand for its networking hardware products. (Kotler and Keller 2012) Rather than reinventing the wheel Cisco made strategic acquisitions that allowed them to achieve immediate market penetration, Ciscos revenues increased 41 percent from 2006 to 2008, led by sales increases in both home and business use. (Kotler and Keller 2012) In conclusion, to succeed when building a brand in the business to business environment it is important to emphasize the technical advantages of your product and then show how those advantages will increase shareholder value. In the consumer market extolling the intricate technical virtues of your product is likely to eliminate large sections of the market that just want a product that works. (Chahal 2013) So creating (or buying companies that already create) products that consumers buy, trust to work, and that will improve their lives is the name of the game. Collins, Mike (2011, June). Industrial Marketing is not Consumer Marketing. Industrial Maintenance & Plant Operation, P44. Kotler & Keller (2012). Marketing excellence, Cisco case study. Marketing management, Pp. 57-58. Chahal, Mindy (2013). Whats the language of your brand? Marketing Week (Online Edition). 7/17/2013, p18-18. 1p
1. How is building a brand in a business-to-business
context different from doing so in the consumer market?
Developing a strong brand that would be able to put the company
away from another business is a very critical job. It will depend on who the client are .It is also determined by how the company will develop and introduce their brand. A brand is means a name, symbol, or design, or any mark to identify different goods and services of a seller or group of sellers. According to Walter Landor, founder of the Landor Associates, the worlds leading brand consulting firm; a brand is a promise that the company will provide satisfaction and quality. In B2B branding, the focus is on how to make a strong relationship with the prospective client in order to make their brand as the top choice of the public or market To be able to do this, the brand is built to be very strong and the personal relationships with the customer must the top priority so that there will be a good output. Instead of using huge marketing and small ads, B2B branding focused on the business of having the consumer be educated about the product first before asking them to accept it. The buyers are being informed about the goodness of the product. They give seminars and workshops to be able for the buyer to understand why one particular product is worth buying and accepting. Upon doing this the buyer wont mind the pricing and they will be less influenced by the great demand instead they will focus on the things and benefits that they can get from the new product. In B2C branding, the consumer market looks at the masses/public. They depend on the customer to develop a strong attachment to the brand. They rely on the media and advertisement to make the brand the top peoples choice. This requires big funding and takes a while.