Difference between indusrial marketing & consumer marketing

Difference between indusrial marketing & consumer marketing

• 1.
  Difference between Industrialand Consumer Marketing Market Structure Industrial Markets: • Geographically concentrated – Auto component manufacturers in Pune, Gurgaon etc • Relatively Fewer Buyers • Oligopolistic Competition (A market condition in which sellers are so few that the actions of any one of them will materially affect price and have a measurable impact on competitors.) Consumer Markets: • Geographically Dispersed – Demand for buying cars is dispersed • Mass Markets, Many Buyers • Monopolistic Competition
• 2.
  Difference between Industrialand Consumer Marketing Products Industrial Markets: • Can be technically complex – Axles for railway wagons • Customised to user preference • Service, delivery and availability very important • Purchased for other than personal use – Ministry of Railways purchases for the Indian Railways Consumer Markets: • Standardised – rail travel • Service, delivery and availability only somewhat important • Purchased for personal use
• 3.
  Difference between Industrialand Consumer Marketing Buyer Behaviour Industrial Markets: • Professionally Trained Personnel – Purchase of sterile pumps by a biotech or pharma plant will involve quality control department, purchase etc • Functional Involvement at many levels – Departmental heads will decide jointly • Task Motives predominate
• 4.
  Difference between Industrialand Consumer Marketing Buyer Behaviour Consumer Markets: • Individual Purchasing – an OTC product will be choice of consumer. Aspirins etc are sold by many pharma companies • Family involvement, influence • Social/ psychological motives predominate
• 5.
  Difference between Industrialand Consumer Marketing Buyer –Seller Relationship Industrial Markets: • Technical Expertise an asset – engineers are hired by companies selling railway equipment • Interpersonal relationships between buyers and sellers • Significant information exchange – a pharma company will explain in detail the specs of a tableting machine • Stable, long term relationships encourages loyalty
• 6.
  Difference between Industrialand Consumer Marketing • Buyer –Seller Relationship Consumer Markets: • Less technical expertise – expensive consumer durables like home theatres may be purchased on simple technical specs • Non personal relationships • Less exchange of information – OTC products are purchased on simple advertising and drugs on doctors prescription • Changing short term relationship
• 7.
  Difference between Industrialand Consumer Marketing Channels Industrial Markets: • Shorter, more direct – Automotive component manufacturers will sell directly to car manufacturers Consumer Markets: • Indirect, multiple linkages – car owners buy auto parts through a distribution channel
• 8.
  Difference between Industrialand Consumer Marketing Promotion Industrial Markets: • Emphasis on direct selling – Sale of packaging material to companies making toiletries and allied products will involve a large amount of personal interphase Consumer Markets: • Emphasis on advertising – Soap like Lux may be purchased on advertising appeal of film stars
• 9.
  Difference between Industrialand Consumer Marketing Price Industrial Markets: • Competitive bidding or the result of a complex purchase process – purchase of a nuclear power plant or fighter planes may involve a complex purchase process involving many ministries and the final price would be various rounds of competitive bidding Consumer Markets: • List or predetermined prices – In some developed countries power can be bought from various sources at different prices