Companies that sell to consumers and those that sell to other industries are two different entities. When the companies are developing their marketing strategies it is important for them to identify themselves as either business to consumer or business to business entities. The details normally guide the whole proposal, from the product type that need to be provided to the company’s marketing strategy. Different from ancient businesses, current businesses can move internationally by just a click of a button. Internet has greatly influence our daily activities, particularly business world. Companies can now easily undertake marketing research on customers by searching through some websites at no cost. The information is always important in developing marketing strategies (Vitale 2006).
Types of information that companies considers when creating marketing strategies
Marketing research normally assists businesses in understanding the requirements of their customers together with their purchasing history and commodity preferences. Therefore in developing marketing strategies companies need to consider the type of product they are producing for their customers and what they need to do to improve their current products. Companies also need to determine why their customers are using their products of late and what need to be done to increase their consumption (Vitale 2006).
Vitale (2006) argues that getting the correct data assist in adjusting the current marketing strategy so that it can fit customers’ requirements. For a company to create an effective marketing strategy, it needs to develop a list of various data collection methods. It should then determine the type of data it needs and how it is planning to analyze it. As long as the information is obtained, analyzed and distributed, everybody in the marketing team will be capable of sharing their views and create an effective marketing strategy. In developing an effective marketing strategy, it is therefore important to consider some of the following information:
- Information of the Competitor
- Market demographics
- Product utility
- Standard of living patterns
- Behavioral patterns
The use of these types of information eases the development of a marketing strategy that is unique and that can assist a company to make better products thus attracting more customers. It is always important to have a look at the past and latest marketing efforts in order to find out how they are performing. There are some few changes that need to be done to assist a company to succeed. It is essential for a company to track its sales from the moment the marketing ploys commenced. This is important since it assists in observing their performance. It is also important to track the competitors marketing strategies to observe how well the public responds to them.
Companies that sell to consumers versus companies that sell to other industrial firms
Companies that sell to other industrial firms are also known as Business to Business or B2B. It is a deal that normally happens among two commercial entities. An obvious B2B transaction is when an organization goods from a wholesaler or a supplier. For instance, a retailer needs to buy clothes from a clothing manufacturer so that he or she can sell them to shoppers in his or her store. Another example is when a company offers services to another company. On the other hand, companies that sell to consumers also referred as business to consumers or B2C entails direct relations among companies and the final user of the products and services of the company. When a supermarket sells a product to a customer, for instance, it is a B2C transaction. Online retail transactions are also known as B2C, as long as the purchaser plans to utilize the product for himself.
According to Barschel (2007), a business to business transaction is always more complex and involved than a standard transaction among a company and a final user. When an organization sells to another business, the company might have to write a bid or proposal in reaction to an RFP, or demand for proposal and then pass through a number of meetings before ending the deal. Business to business advertising normally entails direct communication with capable customers instead of public advertisements. Business to consumer on the other hand is normally less complicated and does not need a formal proposal. In some instances, representatives of the company do not need to have direct communication with consumers in order to develop the sale.
The two types of transactions have little key similarities. Both business to consumer and business to business companies need to plan a thorough marketing strategy that tackles the marketing mix, that is, commodity, promotion, place and price, and identifies the right audience very well. The seller needs to find out the requirements and preferences of the customers and then craft a marketing strategy that permits the seller to reach customers, either consumers or other organizations. Both B2B and B2C organizations need to monitor competitors’ strategy in order to establish and sustain a strong position within the marketplace. They need therefore similar types of information to meet their objectives.
It is quite clear that there are various types of information that companies always considers when creating their marketing strategies. Some of the types of information to be considered are competitors’ information, demography of the market, product utility and many more. It is also clear from our discussion that business to business and business to consumers companies are distinct entities. Business to business transactions are always more complicated as compared to business to consumer transactions. The entities, B2B and B2C need similar types of information to meet their objectives.