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    Diff BW Industrial and Consumer Markets

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    talon smith
    Industrial and consumer markets differ in their structure, products, and buyer behaviors. Industrial markets have fewer geographically concentrated buyers engaging in oligopolistic competition, sell more complex customized products, and involve professionally trained personnel and long-term relationships between technical experts at buyer and seller organizations. Consumer markets have many geographically dispersed mass buyers engaging in monopolistic competition, sell more standardized products, and involve individual purchasers with family influence and non-personal relationships between buyers and sellers.

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    Diff BW Industrial and Consumer Markets

    Uploaded by

    talon smith
    37 views3 pages
    Industrial and consumer markets differ in their structure, products, and buyer behaviors. Industrial markets have fewer geographically concentrated buyers engaging in oligopolistic competition, sell more complex customized products, and involve professionally trained personnel and long-term relationships between technical experts at buyer and seller organizations. Consumer markets have many geographically dispersed mass buyers engaging in monopolistic competition, sell more standardized products, and involve individual purchasers with family influence and non-personal relationships between buyers and sellers.

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    Diff Bw Industrial and consumer markets

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    Industrial and consumer markets differ in their structure, products, and buyer behaviors. Industrial markets have fewer geographically concentrated buyers engaging in oligopolistic competition, sell more complex customized products, and involve professionally trained personnel and long-term relationships between technical experts at buyer and seller organizations. Consumer markets have many geographically dispersed mass buyers engaging in monopolistic competition, sell more standardized products, and involve individual purchasers with family influence and non-personal relationships between buyers and sellers.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    37 views3 pages

    Diff BW Industrial and Consumer Markets

    Uploaded by

    talon smith
    Industrial and consumer markets differ in their structure, products, and buyer behaviors. Industrial markets have fewer geographically concentrated buyers engaging in oligopolistic competition, sell more complex customized products, and involve professionally trained personnel and long-term relationships between technical experts at buyer and seller organizations. Consumer markets have many geographically dispersed mass buyers engaging in monopolistic competition, sell more standardized products, and involve individual purchasers with family influence and non-personal relationships between buyers and sellers.

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    © All Rights Reserved
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    of 3

    Difference between Industrial and Consumer Marketing

    1) 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) Products
    Industrial Markets:
    • Can be technically complex – Axles for railway wagons
    • Customized 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:
    • Standardized – rail travel
    • Service, delivery and availability only somewhat important
    • Purchased for personal use

    3) Buyer Behavior
    Industrial Markets:
    • Professionally Trained Personnel – Purchase of sterile pumps by a biotech or pharma plant will involve
    quality control, purchase and other departments.

    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
    4) 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.

    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
    doctor’s prescription.
    • Changing short term relationship

    5) 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

    6) 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.

    7) 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.

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