Date of submission:
This paper will begin by a brief definition and analysis of each of the two sectors under consideration. The manager can be said to be going global in this case moving from a Fast Moving Consumer Goods (FMCGs) market whose scope is purely domestic to a more complex market dimension- The business to business market. (B2B).
Fast moving consumer goods (FMCGs) are those products with a short shelf life as a result of the high frequency with which they are sold and also because some of them are easily perishable. One major characteristic of FMCGs is that they sell fast at a relatively low cost. Examples of ...view middle of the document...
Business to business and Business to Consumer are however interrelated in that a typical supply chain involves transactions between several businesses in the process of companies acquiring various raw materials that are then used to produce finished products which are eventually sold to individual consumers through business to consumer transactions. (Huczynski,et al, 2001).
CHARACTERISTICS THAT COULD BE OF INTEREST TO A MARKETER
Nature and size of customers:
A small number of customers is involved hence each customer is of significance to the company. The company therefore does all it can to maintain and satisfy the needs of the customer.
The buying process is more complex
The business buying process is complex and highly structured requiring multiple steps drawn out over a period of time and involving a wide range of individuals representing various areas of expertise or interest from within the organization.
Customers may base their choices on various economic as well as technical criteria. These criteria may also be influenced by regional of factors such as culture of the consumers because they are the end-users.
B2B transactions involve signing of contracts between the two businesses that are trading before the transaction is carried out. These agreements are binding between them and bring the issue of obligation into play. The risk factor is also dealt with as we shall see later in this paper.
Buying fits specific requirements:
There are precise requirements that businesses would look for before going ahead with a transaction. These requirements conform to the company standards in terms of quality of products and fulfillment of consumer needs.
Businesses form some kind of partnership in the process of doing business with each other. The buyer-seller proximity is reversed; the supplier visits the customer and establishes a true one-to-one relationship with the customer over a period of time. Such a business relationship links future expectations and performance outcomes of the companies.
Demand for one good is derived from the demand for another. It is derived from the supply chain. For example, the demand for iPods increases the demand for small hard-drives.
Negotiation is very important in B2B transactions. Prices and conditions of sales are arrived at through a negotiation process.
As a marketing manager moving into the global B2B market, it is important that I first understand and acknowledge the differences between the business to consumer (B2C) sector that I have been dealing with, and the wider global B2B sector. In addition, a brief analysis of the major characteristics of the B2B sector would serve to bolster my understanding as well as preparedness for the global marketing position.
The backbone of every business is the consumer. This is regardless of the type of business or the environment in which...