Difference In Marketing

Differences in Marketing

Tony DiVito

University of Phoenix

E-Business

EBUS 400

Keith Hopkins

Jun 11, 2006

Differences in Marketing

Introduction

Marketing practices depend greatly on the intended audience. Business-to-business (B2B) marketing requires knowing the business needs, its current situation, and its competitors. Business-to-consumer (B2C) marketing also requires knowing the wants and needs of the intended audience but it also requires an in-depth understanding of the company's internal dynamics, including: competitors, costs, supply chains, distribution, technology and trends. Therefore, it is reasonable to conclude that there are differences in marketing between B2B and B2C business enterprises. This paper will outline and provide examples of the differences between these two e-commerce business transactions.

B2B Marketing

B2B businesses sell products and services to other businesses for use in their daily operations or for making other products and services (Wikipedia, 2006). B2B marketing is quite an extensive process. It requires companies to focus on building relationships and communication techniques that generate leads, which will ultimately be converted into customers. Because decisions in purchasing typically require the approval of multiple decision-makers, B2B companies need to develop marketing materials to educate a variety of different business professionals. The marketing materials will need to meet the specific needs of the customer. For example, a B2B company will most-likely need to have technical marketing pieces for engineers and marketing pieces that speak to the bottom line, cost and revenue, for top-line executives (Murphy, 2006).

B2B businesses use their marketing dollars to develop programs and materials that are designed to provide specific information to help their customers make a rational buying decision. B2B businesses rely on customer testimonials and other credibility building activities to help companies determine the value of the B2B's product or service (Murphy, 2006).

Oracle provides a good example of the manner in which a B2B company markets its products and services. It is easy to recognize by Oracle's homepage that its marketing and promotion activities are generated toward other business entities that use Oracle products/services to assist them in their daily operations. The homepage is broken into three main areas: about Oracle, news and events, and Oracle resources.

Selecting the "about Oracle" tab provides viewers with information regarding Oracle's corporate vision, history, governance, and achievements and awards. Here businesses can determine if Oracle's corporate philosophy fits with their own. The tab titled "news and events" provides links to the pressroom, investor relations and events. This area provides viewers with press releases regarding products/services, business partnering, mergers & acquisitions, and upcoming events, such as trade shows. The third tab, "Oracle resources", provides information regarding Oracle's partners and suppliers, as well as it's pricing and licensing policies and access to Oracle's customer service area. Through its website, Oracle is focusing on providing value and meeting the needs of its current and future customers (Oracle, 2006).

B2C Marketing

B2C businesses sell products and services to consumers for household or personal use (Wikipedia, 2006). "The ultimate goal of B2C marketing is to convert shoppers into buyers as aggressively and consistently as possible. B2C companies employ more merchandising activities like coupons, displays, store fronts (both real and Internet) and offers to entice the target market to buy" (Murphy, 2006). Marketing campaigns for B2C companies are mostly concerned with the transaction, they are shorter in duration and are designed to capture the customer's interest immediately. These campaigns often include special deals, discounts, or vouchers to entice the consumer into a quick purchase.

A B2C business needs to understand what motivates its buyers and the emotional aspect of the buying decision. B2C marketing needs to focus on creating compelling materials that build awareness for their brand, enhance the customer's comfort in buying from them, and project quality service and best price.

In addition to its retail locations, Target has an established presence on the Internet and provides a good example of the marketing strategies employed by a B2C company. Target's homepage has links directing its visitors to areas including: women, men, baby, kids, and home, to name a few. Consistent with B2C marketing strategies, Target offers discounts, and special promotions, in an effort to turn visitors into buyers. Two current promotions include free shipping on all bed and bath purchases, and free shipping on all orders greater than $50.00. Target has done well in recognizing that online shopping requires ease in viewing items, seamless transactions and promotional offers to create impulse buying (Target.com, 2006).

Reasons Why Marketing Differs

One of the main reasons why marketing differs between B2B and B2C businesses is the buying experience. There is quite a difference between buying a product