The author talks about a theme that has commonly been used in many marketing texts and courses that “marketing is marketing, irrespective of the product or marketplace.” What it means is that it doesn’t matter what product or to whom you are marketing to; it is the same marketing and the concept is the same. The author cites (from other writers) areas that this concept would not apply especially between consumers and business buying behavior models and the extended elements of the services marketing mix which include people, processes and physical evidence. In addition, the service marketers quickly point out that the nature of marketing in services is different because of the basic uniqueness of services as compared to marketing of products which include intangibility, direct organization-client relationship, consumer participation in the production process, and complexity.
They specifically point out on the aspect of intangibility noting that it restricts an organization to create a differential advantage over its competitors especially since competition has become intense both locally and globally hence, organizations have to differentiate and gain a distinctive edge over their competitors in aspects such as branding and personnel differentiation. In addition, it is difficult for customers to evaluate a service; they cannot taste, see, feel, smell or possess a service until they experience it because of the intangibility nature of services. However, as service marketers highlight the basic distinction when marketing of services, marketers on the other hand argue that there are only minor differences between marketing consumer goods versus industrial or business- to- business goods. Hence, this paper intends to discuss how far we can generalize this concept and ideas of marketing to be the same when discussing the characteristics and nature of the business-to-business marketing or are there fine distinctions when it comes to marketing of consumer goods, services and industrial or business-to-business marketing.
The core issues that are discussed in this paper on the differences between marketing of consumer goods and industrial marketing are on buying behavior where the two buying behavior models i.e. consumer buying and business-to-business are compared, clearly showing the specification stage in business buying which is not there in the consumer buying model and the different forces that influence the purchasing behavior of both the consumers and organizations. Other issues include the role that the buying centre plays in purchasing as compared to consumers who decisions may be affected by social influences, how risks are perceived, and the formal procedures especially of the business buying process which differ greatly from the consumer buying because of the much documentation, formalities and the many people involved in purchasing, and the differences in how selling is done in both the consumer buying and business buying. Even with these differences few marketers do not see major differences in consumer buying and business buying.
The second core aspect is in understanding competitors. It is said that in the consumer market it is so easy to know who your competitors are and their marketing strategies because of the much advertising and promotion done by companies as they try to position their products in their consumers’ minds as being the best in what they offer, and with the diverse products in the market each wants to show how distinctive their products are by distinguishing them through branding. However, in industrial marketing it is not easy to gather information about your competitors since you cannot collect data from your own rivals and you may not know what their intentions are. Moreover, many managers in the business market are so engrossed in keeping up to date with the any changes in their product specifications of their range of products because of the rapid changes in technology while giving much focus on personal selling and giving minimal time in analyzing the competitive forces.
The third issue is in marketing research whereby in the consumer market it is easy to conduct a detailed market research since your target market comprises of consumers and are more willing to give information and can be done frequently unlike in the industrial market where even though such marketing research is usually done it is minimal and it is difficult to gather data because managers in these industries are busy and don’t want to waste time filling questionnaires or having personal interviews, one may not also be able to reach the person whom you are to interview because of the secretaries who may be advised not to let anyone in especially people who want to gather information from interviewee, the incentives for gathering research in industrial marketing are not attractive and motivating to recipients as compared to gathering consumer research, and information in most business organizations is very confidential and are not willing to reveal that to their competitors.
The fourth issue is market segmentation which the author disputes that with the many segmentation variables used by industrial markets in many written textbooks i.e. by geographic location, by type of organization, trade category, customer size, product usage, business sector, buying personalities, brand loyalty and SIC codes; is nothing more other than segmentation by industry sectors or internal product groupings and as for the trade directory or standard industrial classification codings, they disguise themselves as customer grouping analysis. This differs from segmenting using customer need and attitude used by consumer markets.
The fifth concern is branding which helps identify and distinguish company products. It is said that consumer brands especially in supermarkets do create a strong affinity and emotional attachment with the consumer but as for industrial markets, the uniqueness in positioning and the marketing promotions do lack substance, have a short life span and has no emotional attachments as compared to consumer brands.
The marketing mix is yet another issue that differentiates the industrial and consumer market. The traditional 4Ps (product, promotion, pricing and place) are tactical marketing tools that have been well implemented by most marketing practitioners. With the introduction of service marketing, the 3Ps were added (people, process and physical evidence). The author talks about how the “4Ps” are said to apply to industrial markets without the other “3Ps” of service marketing however the author points out that when one makes a comparison between the consumer goods there is much stronger customer service aspect in business markets especially on aspects of product proposition, technical advice before a sale, ongoing customer support and aftermarket operations. The marketing channels are said to be shorter in the business market and most businesses use trade shows, direct marketing and centrally focus on using the sales force to promote their products.
Finally, many long standing and mature marketing departments have good systems for marketing control and implementation unlike in the industrial companies where the sales-oriented culture has no well defined operational controls that help to ensure the marketing activities are well implemented.
There is no one approach or correct definition of marketing hence marketing is said not to be a science. Peter Drucker, the UK’s chartered institute of marketing, and the American Marketing Association all have given their differing views of what marketing is all about. However, there are common ideas of what marketing really is with the most essential ones being the ability to satisfy customer needs and wants, the exchange of product or service for payment or donation, the need to create a distinctive edge over your competitors, ability to identify favourable marketing opportunities, resources in terms of financial surplus and profits to enable a viable future for the organization, efficient and effective use of resources to maximize the market position held by the business, and aim at increasing company’s market share in defined target markets. In order to have a viable future, a company must take advantage of the right opportunities and target the right consumers for that product and give a marketing offering that gives it an edge over its competitors. This will result to customer satisfaction hence a rise in market share and profitability. However, if a company does not produce a product that caters for the need and wants of customers and doesn’t continuously scan the marketing environment in which the business is operating it will fail.
In conclusion, unless businesses develop a process, culture and a set of operational procedures to actually do the marketing, then these marketing definitions do not have meaning. It is said that most large UK businesses do now practice the marketing process when they undertake a market opportunity appraisal, market segmentation and targeting, or market planning, they usually do an analysis-strategy-programmes process. Some questions arise as to how marketing should be explained, is it through having a defined set of goals that are put into action through the process of analyzing markets, strategic decision making, coming up with tactical marketing mix programmes and finally through implementation and control. Are there distinct differences in explaining buying behavior (both consumer and business) or are the variations minimal and is there any one way to describe and characterize what marketing really is and whether the industrial markets should require their own concept of marketing when dealing with business markets. These are the questions this paper seeks to address. The author concludes that marketing is indeed marketing, having common objectives, processes and tools, irrespective of the market in question. However, the views presented by others say that there are distinct differences in marketing and hence the application of marketing has to be dealt with differently when it comes to business-to-business marketing, target markets, and the marketing managers themselves.
CRITIQUE OF THE PAPER
Fern and Brown (1984), conclude that “there is no significant difference between industrial marketing and consumer marketing and that it is a mistake to differentiate them.” Cooke (1986) disagrees and indicates that it is not feasible to say that industrial marketing and consumer marketing are the same. It is also not realistic to assume the same marketing strategies can be used for consumer and B2B products.” Wind (2006) highlights that the lines between business and consumer markets are blurring in five important ways: “A convergence of B2B and B2C markets; driven by the development of the internet and the rise of small businesses; a blurring of value chains through outsourcing and other relationships that allow networks of firm to do what was once done within the firm; a blurring of relationships with customers, as customers are invited to participate in the design and delivery processes; blurring of functions within the firm as marketing and other functions are more integrated through EDI and other systems; and a blurring of products, services and customer experience, moving from an “industrial” base to a knowledge-based society.” Despite the convergence I still feel that marketing differs, irrespective of the product or marketplace.
Kotler (2003, p.407) defines a product as “anything that can be offered to a market to satisfy a want or need. Products that are marketed include physical goods, services, experiences, events, persons, places, properties, organizations, information and ideas.” I believe the marketplace means where the target market is located. Kotler (2003, p. 410) classifies products into three categories:
Durability and tangibility: “there are nondurable goods e.g. beer and soap and are consumed quickly and purchased frequently hence, the strategy used is to make them available in many locations, charge on a small markup, and advertise heavily to induce trial and build preference unlike in durable goods such as TVs, refrigerators, clothing etc which require more personal selling and service, command a higher margin, and require more seller guarantees. There are services which are intangible, inseparable, variable and perishable which require more quality control, supplier credibility, and adaptability.” Having looked at nondurability, durability and service I feel that the marketing is different since the marketer has to take into consideration the different aspects in each and use a different perspective in their marketing approach. The marketers of services have also pointed out in this paper that the nature of marketing being different owing to the basic characteristics of services. They touched on intangibility, direct organization-client relationship, consumer participation in the production process meaning that the consumer has to be there when the service is being offered unless the service is being directed towards objects such as car repair, computer repair; and complexity which arises because of the intangibility, inseparability, perishability and variability nature of services. Lack of ownership of the service unlike the product will impact on how it is marketed since consumers don’t own the service they only take with them memories and experiences.
Consumer -goods classification: Kotler (2003, p. 410) classified consumer goods into convenience goods “which are frequently purchased immediately and with a minimum of effort such as soaps, toothpaste, bread, newspapers. They can be further divided into staples (goods consumers purchase on a regular basis), impulse goods (those that are purchased without any planning or search effort) and emergency goods (which are purchased when a need is urgent – umbrellas during a rainstorm and manufacturers will place them in many outlets to capture the sale). There are shopping goods where the customer selects and purchase products on basis such as suitability, quality, price, and style. The shopping goods can be further be divided into homogeneous shopping (goods similar in quality but different enough in prices to justify shopping comparisons) and heterogeneous shopping goods (which differ in product features and services that may be more important than price).” Kotler (2003, p. 410) notes that “the seller of heterogeneous shopping goods carries a wide assortment to satisfy individual tastes and must have well-trained salespeople to inform and advise customers.”
Specialty goods have “unique characteristics or brand identification for which a sufficient number of buyers is willing to make a special purchasing effort for example cars, electronics, men’s suits, etc. Dealers do not need convenient location; however, they must let prospective buyers know their locations. Unsought goods are those that the buyer will never or does not normally think of buying for example, life insurance, encyclopedias which require advertising and personal-selling support.” (Kotler 2003, p. 410)
Industrial-goods classification: can be classified based on materials and parts (which include farm products and natural products). Kotler (2003, p. 411) says that “the perishability and seasonality nature of farm products gives rise to special marketing practices and their commodity character results in relatively little advertising and promotional activity, with some exceptions”. As for natural products, Kotler says that since they are limited in supply, they usually have great bulk and low unit value and must be moved from producer to user. Fewer and larger producers often market them directly to industrial users because they depend on the materials hence in the business market long term supply contracts are common. According to Kotler (2003 p. 412) “price and service are major marketing considerations and branding and advertising tend to be less important.”
Capital items on the other hand facilitate developing or managing the finished product and include installations and equipment. Kotler (2003, p. 412) comments that even though “some equipment manufacturers sell direct, more often they use intermediaries, because the market is geographically dispersed, the buyers are numerous, and the orders are small. Quality, features, price, and service are major considerations hence, the sales force tends to be more important than advertising, although the latter can be used effectively.”
Supplies and business services are short-lasting goods and services that facilitate developing or managing the finished product. Supplies include maintenance and repair items and operating supplies while business services include maintenance and repair services, and business advisory services which are purchased on the basis of supplier’s reputation and staff.
From the views presented here, classifications in both consumer goods and industrial goods, marketing varies because of the nature of the products which I feel should have been put forward to also show that marketing varies with the product at hand. Some products are marketed throughout, others depend on seasonality. Due to the cultural beliefs of the people especially when selling internationally can affect your product which you may have to modify or come up completely with a new product to suit that market, you may have to change your advertising and promotions to suit the language of the people and avoid communication problems. Due to the challenges of the global environment especially the intense competition, changes in technology, political and legal influence as well as the economy may deter an organization from using the same strategies that they use in their domestic market due to differences in the environment and the level of development in a particular country. Hence, I do not accept that marketing is the same no matter the marketplace.
The exceptions cited in this paper are consumer behaviour differences with business behaviour and the extended service marketing mix (cf. Dibb et al., 1997; Kotler, 1998). The core dissimilarities presented in this paper are
Buying behaviour
According to Assael, 1997; Ford, 1997), “the popular behaviour models for consumer and business-to-business markets, reveal the additional specification stage in much business-to-business purchasing and the different sets of influencing forces.” Kotler (2003, p. 229) agrees and says that, “the buyer determines the needed item’s general characteristics and required quantity. For complex products, the buyer will work with others – engineers, users – to define characteristic like reliability, durability, or price.” This is unlike the consumer market where decision has to be made by the consumer him/herself.
There is the role of the buying center as compared to consumer peers. Kotler (2003, p. 220) explains the buying center as composed of “all those individuals and groups who participate in the purchasing decision-making process, who share common goals and the risks arising from the decisions. It includes all members who play any of these roles (initiator, users, influencers, deciders, approvers, buyers, and gatekeepers). As for the consumer market, the five roles (initiator, influencer, decider, buyer and user) differ and the influence can be from family, peers etc.
Assessment of risk: I think depending on the purchase whether it is involving and highly complex would require much detail before purchases are made. Additionally, business markets do not want to get a supplier who cannot deliver. Kotler (2003 p. 219) says that “when the buying situation is a new task in which the purchaser buys a product or service for the first time, the greater the cost or the risk, the larger the number of decision participants and the greater their information gathering – and therefore, the longer the time to decision completion.”
Formality of buying: unlike the consumer market that a consumer doesn’t need documentation process so as to purchase a product; in the business market however, many people typically influence business buying decision and involves a lot of documentation before final authorization to purchase the products. “Procurement decisions typically involve buying centers with several individuals playing different roles (Robinson, Faris and Wind 1967), and analysis of market structure and transaction costs help to make explicit the criteria used by individual buying center members and facilitate procurement decision making by the group.” (Sashi and Kudpi 2001, p. 190). Additionally, in consumer markets, “transactions are final because buyers, usually individuals and households, do not engage in subsequent market transactions (Sashi and Kudpi 2001) unlike in the business market where transactions are intermediate because the buyers, usually organizations, use their goods and services purchased as inputs to their value-adding processes and subsequently sell the output.” (Sashi 1990)
Sashi and Kudpi (2001) suggests that, “the distinction between industrial and consumer markets depends not on the products bought and sold, but on the nature of the transaction whereby intermediate transactions are considered to take place in business markets and final transactions in consumer markets.”
Nature of selling: since the consumer market is geographically dispersed unlike the business markets which have more geographically concentrated buyers will require more of advertising to reach a diverse audience unlike the business markets which will utilize personal selling especially on “the use of missionary sales force consisting of the most effective salespeople.” (Kotler 2003, p. 219)
Sashi and Kudpi (2001) highlight that, “in consumer markets, choice of buyers whose needs the organization will satisfy with products (goods and services) involves selection of horizontal market segments but in business markets, because intermediate transactions are involved, an organization must first choose the buying stage in the value-added chain before selecting horizontal segments.”
I think another aspect is reciprocity where business buyers often select suppliers who also buy from them (Kotler 2003 p. 219) which is not there in the consumer market.
Clarke and Freytag (2008) say that, “making priorities depend on what both parties want and the perception they have of each other. Levitt agrees that, “the offer is valuated by its capabilities in problem-solving – it is not the drill that is interesting, but the ability to make holes.” Hence, both the consumer and business markets have a commonality in that they look for the capability of a product that will solve their problem or need. Kothari and Lackner (2006), clarify that it is not just about developing and creating products but it is about offering value to customers.
The influencing factors for consumer buying decision process and organization buying process differ hence when targeting the two different marketing activities will be needed for the two groups.
Understanding competitors
I agree with the author that most consumer marketers are aware or their rivals’ brands and marketing tactics because of the prominence of brands and the much consumer promotion in media. Additionally, due to global marketing there are so many diverse products which the customer is faced with everyday as companies try to position and reposition themselves in the minds of consumers as being the best. Moreover, because of the use of advertising by most companies to reach their diverse audience, many companies are able to track their competitor tactics.
In industrial markets it is said that getting competitive intelligence is not easy. Most laws in different countries do not allow industry espionage or spying hence, making it difficult to conduct surveys of your rival management teams. The author highlights that many managers seem so occupied with trying to keep up to date with product specification changes in their own portfolio and in sales force activity, that the give minimal time assess their competitive forces.
According to Anderson and Johansson (1994), “the world of the business marketer is rather complex. The roles of the firm are not given, at one point in time the firms may be competing and at another point in time they may be cooperating. In some situations, the firm acts as a seller and in other situations as a buyer, who may buy from a seller, who in some situations is a competitor.” The role of the firm according to (Anderson and Narus, 2004; Ulaga and Chacour, 2001), is “defined by what the buyer is looking for and what is offered by the provider.”
Marketing research
The author highlights the difficulty involved in conducting market research because of the secretaries’ gatekeeping also the watchmen and security personnel whom you have to get permission from. Additionally, busy managers do not want to waste time attending discussion groups or filling questionnaires, industrial research incentives are not as enticing as those in the consumer research, and most companies want to keep their trade secrets. Articlesbase.com agrees that “B2B market research studies are generally far more difficult and expensive to conduct when compared to consumer research studies. The reasons for this are the need for higher incentives to entice participation by business professionals, the lack of available sample for business-to-business market research, and the frequently changing profiles of business professionals as compared to participants in consumer market research panels.”
According to competitivebranding.com, “most B2B companies conduct no market research at all to speak of. They concentrate on various technical statistical data but make no effort to find out the emotional responses within their target group toward their industry’s products and/or services. Logical thinking is the keyword within the B2B industries because it is the ideal which we seek in our profession.” An article written by Catherine Chetwynd in b2bm.biz argues that “in the B2B sector, market research tends to be viewed as an option rather than as a commercial imperative, particularly for smaller companies. However, she says that knowledge is power and understanding the attitudes, preferences and/or perceptions of customers and potential customers towards a product, service or brand proposition is essential for any organisation seeking to expand its business. She proposes that when carried out well, market research cuts the risk out of marketing and enables more effective targeting, allowing companies to make the best use of opportunities and to reach new audiences. It takes perception and guesswork out of the equation and highlights problem areas; it also provides actionable recommendations in the face of internal disagreements.”
Market segmentation
The base variables in consumer and business buying differ. According to the Simkin (2000), despite many textbooks having these classifications, he refutes and says that “most of these variables especially in the industrial market segmentation are nothing more that segmenting by industry sectors, or by internal product groupings which is a long way from the customer need and attitude segments adopted by consumer markets. Additionally he points out that the Standard industrial classification codings or trade directory membership lists too often masquerade as customer grouping analysis.” Plank (1985) argues that “benefit segmentation is now used widely in consumer markets, while in industrial situations demographic and product- related variables continue to be the most commonly applied.” Simkin (2008) agrees that most business-to-business marketers segment their markets on “product group classifications, geographical location of customers and/or business sector activity of the client or customer.” Sudharshan and Winter (1998) suggested that “industrial markets be segmented based on the characteristics of the buying organization and decision-making process and its participants in buying organization.”
In a study done by Wind and Cardozo (1974) they proposed the “segmentation of industrial markets in two stages: the first involving formation of macrosegments based on the characteristics of the buying organization and buying situation(size, usage rate, application of product, SIC category; end market served, organization structure, location, new versus repeat purchase); and the second involving dividing those macrosegments into microsegments, based on the characteristics of decision-making units (position in authority and communication networks of firm, personal characteristics: demographic, personality, perceived importance of purchase, relative importance of specific determinants of buying decision, attitude towards vendors and decision rules).” However, (Dowling, Lilien and Soni 1993; Dibb and Simkin, 2001; Kalafatis and Cheston, 1997; Sausen and Herman, 2005) claims that “there is a continuing gap between the segmentation theory and practice in industrial markets.” Dowling et al, (1993) gives reasons as to why there is this gap due to “the lack of generalizability which is as a result of small convenience samples; use of product- related rather than the needs-based segmentation; instability of emergent segments, and the use of mixed segmentation bases. While there remains a requirement for within-segment homogeneity in terms of benefits sought, there is still no agreement about the most appropriate criteria for grouping firms in the industrial markets.” Clarke and Freytag (2008) claim that, “there seems to be problems with the segmentation methods and processes proposed in the literature, as these cannot be implemented in practice and that the practitioners have not moved away from very simple approaches.” Further, “theory offers a variety of approaches, which are quite advanced but difficult to handle in practice.” (Millier, 2000; Dibb and Simkin, 2001; Weinstein, 2004).
I think the segmentation bases for both consumer and business buying are applicable. However, I feel that organizations may use these variables depending on the market and how the industry’s operate and their classification and what would be easier to use.
Branding
Branding works well in the consumer market because of the increased competition and diversity of products and makes customer become loyal to products where they can identify with it. Kapferer (1992, pp. 46-7) argues that “branding means more than just giving a brand name to a product or products: brands are a direct consequence of the strategy of market segmentation and product differentiation.” Xie and Boggs (2006) argue that “firms utilize a combination of brand attributes to meet the expectations of specific customers in various economic conditions. In essence, the role of branding and brand management is primarily to create differentiation and preference in the minds of customers.” Uusitalo, Wendelin, and Mahlamäki comment that, “branding theory has is origins in the consumer product markets. The brand is presented as a market signal targeted mostly to the end consumers and enabling them to save time by guaranteeing a certain level of quality, simplifying their choices, and answering to specific needs.” Because of the increased competition and variety of brands, branding helps to differentiate products especially in the consumer market and create a preference for their products. Branding in business markets helps to identify the organization but may not play such a major role like in the consumer market.
The marketing mix
The author notes that in most introductory marketing texts that the core “4Ps” hold firm in business markets however, the customer service aspect to the product proposition (technical advice before a sale, ongoing customer support and aftermarket operations) is much stronger in business markets.
According to dobney.com, product and packaging are the most important to the customer in the marketing mix however, in B2B marketing, “although product quality is important, it has to be matched by the quality of supply – delivering the product when it is needed, account service and support, and strategic flexibility within the relationship context.” Lessons.lerntipp.at argues that “products offered in B2B markets are technically complicated and require more explanation and information than most products in consumer markets. Costumer expectations concerning technical features are extremely high; often products are especially designed for certain customers.”Xie and Boggs (2006) note that “consumer products tend to be culturally sensitive than industrial products in international markets, especially in the heterogeneous emerging economies.”
Simkin (2000) says that “the marketing channels are often shorter, with much use of dealer networks or direct marketing. Sales promotion is heavily deployed, trade shows and direct marketing are popular while advertising is used to show the technical aspects of the product unlike in the consumer market where the product tries to identify with the consumer.” lessons.lerntipp.at agrees that “impersonal forms of communication don’t play an important role in B2B markets compared to the dominant role of personal selling – carried out by the producer himself or by an employee of the wholesaler.” Wind (2006) argues that “the explosion of advertising and media channels has added to the blurring of B2B and B2C. He gives an example of the pharmaceuticals where there is an interaction between consumer and industrial marketing whereby in recent years, extensive consumer marketing campaigns have been used to build consumer awareness and demand for new drugs and treatments. Rather than relying on channels to drive awareness, these companies work from the consumer side and industrial side simultaneously to create sales in the middle.”
According to lessons.lerntipp.at, “there is a lack of transparency in B2B markets. The power of customers is a big one, pricing policy is complicated and characterised by a wide range of marketing tool features. Price plays an important role in consumer markets too, but usually only expensive consumer goods – like cars or real estate – are subject to negotiation.” Hart (1994) argues that “pricing tends to be different with few industrial buyers adhering to list prices and expect to negotiate.”
Controlling implementation
The author says that there are no operational controls as a basis for the sales-oriented culture inherent in most industrial companies to ensure effective implementation of marketing activity. Simkin (2000) notes that “the marketing activity is more ad hoc, short term and tactical, rather than on-going brand building or rolling out longer term marketing plan recommendations.”
In consumer markets, there is an emphasis on brand building so as to differentiate a company’s products from its competitors and there are longer term marketing plans.
Cross-cultural negotiations between industrial product firms and consumer product firms
This issue was not tackled by Simkin in his paper “Marketing is marketing – maybe!” and Xie and Boggs (2006) have shown that there are differences between the two firms when it comes to cross-cultural negotiations. Xie et al (2006) note that “consumer product firms by definition market to the mass consumer market, negotiations are typically not entered into with their primary market, the consumer. Rather, negotiations, and by extrapolation cross-cultural negotiations, will usually be with suppliers or channel members (wholesalers, retailers) in what reality amounts to industrial transactions.” Additionally, “consumer product firms are well grounded in consumer behavior and customer requirements and tend to instinctively realize that not all countries or cultures think the same way as Americans and that contracts in some countries are not the final outcome, but only a starting point.” Xie et al (2006)
In their results, “Industrial product firms had more members on their negotiating team, tended to have a longer overall period of time involved in a cross-cultural negotiation (3.3 months versus 1.25 months), tended to spend more time in prenegotiating briefings, disproportionately used translators, cultural and business experts in their briefing process to a much greater extent than did consumer product firms.”
Definitions of marketing
Given the various definitions by the American Marketing Association, the UK’s Chattered Institute of Marketing, Peter Drucker; the author has pointed out some common themes in most explanations of marketing. However, I feel very important aspects such as creating long term relationships, develop a superior offering, anticipating and identifying future needs, satisfying the internal needs of the organization first before marketing to consumers, strategies that will help them cope with the turbulent environment. Coviello and Brodie (2001) emphasize that “major changes have occurred within both the marketing environment and the business organization. Markets are more global and technologically sophisticated, competition is more intense, buyers are more demanding, and clearly, academic and managerial interest has evolved beyond the narrow focus on consumer goods markets.” The marketing shift seems to head towards creating long term relationships with not only your customers but other company stakeholders.
Doyle (2000) suggests that marketing is the “management process that seeks to maximize returns to shareholders by creating a competitive advantage in providing, communicating and delivering value to customers thereby developing a long-term relationship with them.”
GrÖnroos (1991, p. 8) defines marketing as “the process of identifying, establishing, maintaining, and enhancing (and when necessary, also terminating) relationships with customers and other stakeholders, at a profit, so that the objectives of all parties involved are met. This is done by a mutual exchange and fulfillment of promises.” Morgan and Hunt (1994, p. 34) define relationship marketing as “…all marketing activities directed towards establishing, developing, and maintaining successful relational exchanges.” Hutt and Speh (1998, p. 32) focal point is that “…relationship management constitutes the heart of business marketing.” This implies that any discussion or examination of marketing practices comparing consumer and B2B firms should extend beyond the simple marketing mix model that is prevalent in literature, to incorporate a more relational view of marketing.”