Differences between B2B and B2C Marketing

This assignment discusses the differences between Business-to-Business (B2B) and Business-to-Consumer (B2C) marketing, as well as international marketing and domestic marketing. The key points are: B2B marketing involves trade relations between business entities, while B2C marketing focuses on direct relationships with consumers. In B2B marketing, businesses need to emphasize quality aspects, whereas in B2C marketing, businesses need to focus on customer convenience. International marketing has more opportunities for competitive advantage than domestic marketing, but also faces more cultural and technological barriers.

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TABLE OF CONTENTS
INTRODUCTION................................................................................................................................3
TASK 1: UNDERSTANDING THE CONCEPT AND PROCESS OF MARKETING......................3
1.1 Elements of marketing process..................................................................................................3
1.2 Benefits and costs of a marketing orientation program for Asda..............................................4
TASK 2: BE ABLE TO USE THE CONCEPTS OF SEGMENTATION, TARGETING AND
POSITIONING.....................................................................................................................................4
2.1 Showing macro and micro factors which influence marketing decisions.................................4
2.2 Proposing segmentation criteria to be used for products in different markets..........................4
2.3 Chosing a targeting strategy for a selected product and service................................................5
2.4 Ways in which buyer behavior affects the marketing activities in different buying situations. 5
2.5 New positioning strategy for Asda.............................................................................................6
TASK 3: UNDERSTANDING THE INDIVIDUAL ELEMENTS OF EXTENDED MARKETING
MIX......................................................................................................................................................6
3.1 Explain how products are developed to sustain competitive advantage....................................6
3.2 Ways in which distribution is arranged to provide customer convenience................................7
3.3 Ways in which prices are set to reflect the organization's objectives and market conditions....7
3.4 Ways in which promotional activities are integrated to achieve the marketing objectives.......7
3.5 Analyzing additional elements of extended marketing mix.......................................................8
TASK 4: BE ABLE TO USE THE MARKETING MIX IN DIFFERENT CONTEXTS....................8
4.1 Planning marketing mix for two different segments in consumer markets...............................8
4.2 Difference between B2B and B2C market.................................................................................8
4.3 Differentiating between international marketing and domestic marketing................................9
CONCLUSION..................................................................................................................................10
REFERENCES...................................................................................................................................11
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INTRODUCTION
Marketing is a practice where business develops different strategies and tactics for the
purpose of promoting products at market place. The practice has a direct relationship on company's
growth and success because it is integrated with the customer satisfaction. The study has been made
on Asda which is one of the largest retail entities in UK and which serves almost all sorts of
products to the customers. Thus, for such purpose, researcher has mentioned elements of marketing
process along with the need of market orientation process. Furthermore, difference between
domestic and international marketing is also stated through which the scope of globalization for
Asda has been identified. PEST analysis has been conducted for the purpose of identifying external
market environment of Asda and with such discussion; internal capability of business is also
ascertained.
TASK 1: UNDERSTANDING THE CONCEPT AND PROCESS OF
MARKETING
1.1 Elements of marketing process
Marketing is the concept that reflects exchange of products and services with that to money
and organization conducts the practice for the purpose of meeting different needs of customers. The
major aspect under marketing specifies the exchange relationship between customer and company.
Asda has been emphasizing on changing needs of customers so as to retain its position in the
competitive market place (Sicotte, Drouin and Delerue, 2012). In the below mentioned section,
process of marketing for Asda has been discussed: Marketing audit: At the initial stage, Asda is required to conduct marketing auditing which
also assists business to ascertain the level of competition by competitive analysis. Environment analysis: Prior promoting the products and services, Asda needs to conduct
environmental analysis so that external factors that affect the efficacy of business can be
identified (Saunders and et.al., 2004). In order to analyze the situation of external and
internal market place, Asda can conduct situational analysis in which different strategic
models can be taken into account. With the help of proper situational analysis, all the things
can be adequately considered that affects the practices of business. SWOT model is the
approach that can be used for analyzing internal business activities and through this, the
factors that changes business activities can be ascertained. On the other hand, PESTLE
analysis can also be used so that factors that prevail in external business environment can be
be ascertained. These factors seems to influence business practices; thus proper analysis is
must. Identification of customer needs: Under the elements of marketing process, it is essential
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for Asda to analyze the needs and demand of customers. Therefore, on such basis, new
products can be introduced in the market. Determining on STP strategies: Afterwards, a nalyzing the purpose of marketing, Asda has
to develop several strategies related to positioning and targeting customers.
 Monitoring and controlling: Lastly, business needs to facilitate controlling on all the
activities so that areas of changes and modifications can be found (Pires, Stanton and Rita,
2006).
1.2 Benefits and costs of a marketing orientation program for Asda
Marketing orientation program is beneficial for Asda because it aids business to analyze the
ways through which competitive advantage can be acquired. Main purpose of such program is to
analyze the market structure so that on such basis, products can be promoted adequately (The
Relationship Between Business Strategy and Marketing, 2012). This is also imperative in terms of
identifying needs and demand of customers; thus accordingly, it aids in acquiring customer
satisfaction. With the help of market orientation program, Asda is able to meet the quality standards
of business which further leads to customer retention. The level of profitability increases due to
more focus on customer perception about the products and services. On the contrary, market
orientation process is a cost associated activity because that consumes time and resources both in
higher quantity. Businesses consider such focus on smaller scale because it takes human efforts in
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every single activity (Pehrsson, 2001).
Market orientation process is beneficial for the business entity since that aids in identifying
the needs and preferences of clients. The process needs to be properly managed in business
activities so that the condition of market can be ascertainment. The process of market orientation
needs to be managed for every new product so that it can assist in bringing proper outcomes for the
business entities. Further, on the other hand, market orientation process consumes time and cost
both. At the same time, employees have to put huge efforts in managing market orientation process
and this can hamper their other processes. It is also observed that Asda has been emphasizing
towards the same process because that assists the business to add several new activities in business
processes.
TASK 2: BE ABLE TO USE THE CONCEPTS OF SEGMENTATION,
TARGETING AND POSITIONING
2.1 Showing macro and micro factors which influence marketing decisions Political: Political scenario of business has been changing due to spotty government policies
and strategies; hence, this sometimes impacts the business practices of Asda. Social: In order to meet the needs and demand of customers, Asda is required to consider the
social factors. Therefore, in response to that, every product that is coming from the business
should be socially concerned (Kotler, 2008). Economic: Economic capacity of business is stable due to firm’s tax and subsidies. Thus,
this aids Asda to maintain the flow of resources in different activities.
 Technological: Asda has been getting great assistance from technological innovations and
this aids the business to involve new amenities in the existing services provision.
In terms of conducting competitive analysis, it can be said that Asda has been facing huge
competition from other entities because they are also producing same sort of services (Ham, 2008).
Thus, bargaining power of customers is higher due to availability of large amount of substitutes.
Bargaining power of suppliers has been changing as per the demand and supply aspects of Asda.
Apart from these forces, there are several micro factors as well that influence marketing
decisions of Asda and a few are discussed in the below mentioned section:
 Suppliers: Suppliers of Asda can control the success of business as they hold that power and
Asda's suppliers have huge power since they supply goods to the business in larger quantity.
The buyers are not vital to supplier's business and suppliers are the core part of the buyer';s
finished products and services.
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 Customers: Customers have huge availability of substitutes; thus they can switch to other
brand anytime and this can affect the overall marketing practices of Asda. Customer play
significant role in marketing practices of Asda and change in their preferences can hamper
productivity of the business.
 Competition: The level of competition has been increasing at market place as large pool of
industry rivalries are there in the same market place. Thus, the existing level of competition
can impact differentiation aspects of the business.
2.2 Proposing segmentation criteria to be used for products in different markets
Segmentation is the criteria through which Asda decides business customers and the process
can be conducted with the help of three categories such as through demographic, psychographic and
geographical dimensions. Hence, Asda can segment the market place on the basis of age and
income aspects where high priced chips can be offered to high profile customers and low priced
chips should be offered to medium class people (Gevlani and et. al., 2008). The other segmentation
criteria of business are upon age aspects where kids and youngsters are selected. Therefore, it can
be said that kids should be provided with salty chips; whereas for youngsters, saucy chips can be
offered accordingly.
Asda has been segmenting different customers because the business has wide range of
products and services for all types of customers. In all the local markets of UK, Asda has opened its
supermarkets so that consumers can get the product at the time when required. The business has
been targeting all types of customers so as to capture larger market share. Asda has been operating
business in larger extent where in major emphasis have been given towards covering all the
customer segments so that revenue ratio can be enhanced. Major products of Asda are segmented on
the basis of demographic factors in which (age, income, ethnicity, household lifestyle and cultural
aspects) are considered.
2.3 Choosing a targeting strategy for a selected product and service
Moving towards the process of targeting, it can be said that it is the concept where business
selects the potential customers whom they wish to sell salty and saucy chips. The process consists
of specific market, product and segment which help Asda to make the product enter at the market
place in easier manner (Ferrell and Hartline, 2010). Hence, Asda is available with three alternatives
for targeting markets and those are undifferentiated, concentrated and differentiated. As per the use
of strategies, the present case has been undertaking differentiated targeting strategy because Asda
has to emphasize only on selected market place which might also enhance the customer base. Using
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such strategy can assist Asda to maximize the profit ratio; meanwhile, high revenue ratio can also
assist Asda in acquiring long term sustainability. The strategy aims to focus on customer’s needs
and demand which would ultimately retain customers for longer period (Doole and Lowe, 2008).
However, Asda has to frame differential promotional messages so as to communicate the benefits of
chips. In order to target the market, Asda needs to adopt specific strategy so that adequate customer
segment can be determined. Young people can be selected for selling the subsequent products to the
customers as through that, sales and profitability ratio can be encouraged. Specific segment needs
to be determined here so that customers can get the exact products what they demanded for.
Differentiated strategy can be used in the subsequent case so that products innovated for the
youngsters can sold directly to them.
2.4 Ways in which buyer behavior affects the marketing activities in different buying situations
Needs and demand of buyer changes as per different behavioral concepts and in the present
case as well, needs of customers may change due to these factors. Some of them are like: Complex buying behavior: Under complex buying behavior, consumer observes different
brands because the products they buy are highly expensive and risk associated. Market
research is more in such behavioral aspects. Dissonance – reducing buying behavior: Consumers undertake dissonance reducing buying
behavior when they are highly involved in the purchase of a product with different brands.
Preferences in such behavior changes when the product is highly expensive and risky. Habitual buying behavior: In habitual buying behavior, customers involve themselves at
fewer extent and they perceive to buy low cost products and services from different brands.
Brand loyalty does not occur in such case and customer purchases products from the
familiar brands (Alserhan, 2012). Variety – seeking buying behavior: It occurs in a situation of low consumer involvement but
significant brand differences. As per the buying behavior, customer tries to use different
brands of such products because they want to check the variety of products. This is the
reason because of which most of the consumers do a lot of brand switching. Psychological behavior: There are varied factors that are included in psychological aspects
and that also drives the customers to change their purchase decisions. Perception, attitude
and motivational level of customers are those facets that drives them to purchase specific
products from the company. The decision making process of customers are dependent on
different psychological behavioral dimensions.
 Demographic behavior: Needs and preferences of customers changes as per the
demographic factors which includes region, culture, age and gender. Hence, according to
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these forces preferences of people differs and affects overall demand for the products of
Asda.
However, apart from these concepts, buying behavior of customers of Asda also changes as
per their lifestyle and attitude towards different products and services. Perception and motivation
aspects of consumers also matters for changing their behavior and purchase decision.
2.5 New positioning strategy for Asda
For the purpose of developing and positioning salty and saucy chips at market place, it is
necessary for Asda to concentrate on several promotional techniques because that might also assist
the business to stimulate a large pool of customer's mindset (Pehrsson, 2001). Thus, to position salty
chips for kids, focus should be given on product packaging and prices because both the elements are
vital for enticing customers. Several schemes can also be added to the same product so as to grab
customer’s attention. Moving on to youngsters, Asda needs to position saucy chips through adding
complementary sauce with the product. Focus should be made on taste element as that will only
assist Asda to retain customers. This will also result in sales and profitability maximization (Kotler,
2008). Besides these tactics, several other methods can also be used such as Asda can promote the
chips through social networking sites. Hence, it can be said that product promotion is essential for
Asda because through that only, the business will be able to make the people aware about
availability of newly salted and saucy chips at market place. Asda has been positioning all the
business products and services as per the market criteria and this can also influence the ratio of sales
and profit. Social media marketing is vital in the present section since that aids the business entities
to extend the line of approach in different segments. With the help of such strategy, customers can
be attracted towards the products and along with that, their feedback can also be included for the
same purpose.
TASK 3: UNDERSTANDING THE INDIVIDUAL ELEMENTS OF
EXTENDED MARKETING MIX
3.1 Explain how products are developed to sustain competitive advantage
Competitive advantage has become the prime objective for all organizations in retail and
other sectors as well. There are various options through which Asda can acquire competitive
advantage and in the present case, Asda can undertake new product development strategy. Thus, as
per the new development strategy, Asda needs to make several changes in the product type so that
customer attention can be acquired on higher extent. Therefore, according to the same, salty chips
can be provided with additional schemes so as to entice the attention of kids; where in the case of
youngsters, saucy chips can be provided with chilly ketchup so as to increase the ratio of
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consumption. This is another criterion through which customer's attention can be acquired and
accordingly, this can assist Asda to maximize the revenue ratio (Sicotte, Drouin and Delerue, 2012).
In order to sustain in competitive market place, Asda needs to differentiate its products
through considering quality facets on higher quantity. The business can survive at competitive
market place if they are able to satiate and retain the customers towards company's specific
products. Asda needs to emphasize on quality dimensions so that it could assist the business to
create competitive edge over the rivalries. On the other hand, Asda can also differentiate the
business products through emphasizing on pricing element because price factor can grab the
attention of customers on higher extent. Thus, the new products should be highly concerned with
pricing and quality aspects for more differentiation.
3.2 Ways in which distribution is arranged to provide customer convenience
Distribution in retail is one of the major aspects and it is the duty of senior officials to carry
out in an appropriate manner. In context to Asda, manager can use exclusive distribution strategy in
order to enhance the customer convenience (Ham, 2008). However, rationale behind selecting this
strategy is that it will make managers of Asda to focus on only one wholesaler, retailer or distributor
in specific geographical areas such as near school campus for salty chips for kids and nearby malls
for saucy chips for youngsters. Furthermore, through the help of this, Asda in its chips segment can
create high prestigious image. Direct selling method can also be considered by Asda since this is the
most effective and cheapest way of delivering and distributing goods to the consumers.
Furthermore, several new innovative techniques can also be added such as click and collect mode
where in the customers merely have to click on the product while accessing the website. Doing such
thing could assist the customers to get the product at the specific place where they want it.
Therefore, Asda have to sell the products according to the convenience of customers. Changes could
also be made in supply chain aspects where in product distribution sources can be altered.
3.3 Ways in which prices are set to reflect the organization's objectives and market conditions
Price is considered as the most vital element which aids business to enhance the sales and
profitability aspects. Thus, it is essential for the business entity to determine proper pricing
strategies. In the below section, discussion has been made regarding adoption of adequate pricing
strategies (Alserhan, 2012). On the basis of product segments that management of Asda is planning
to launch the pricing strategy should be included are like skimming pricing for saucy chips and
penetration pricing for salty chips. Main purpose behind selecting these pricing policies is that
through the help of skimming pricing strategy, management can price high at initial stage for saucy
chips and on the other hand, in order to attract parents for buying salty chips for kids, management
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can use penetration pricing as it will help in setting low prices at the initial stage and once people
get addicted to it then increases the price for generating higher revenue and profits (Ham, 2008).
Prices of products can be determined through ascertaining cost of production as entire cost
aspects needs to be included while setting the prices. Asda can also determine products on the basis
of unit and quantity selling and along with these aspects, prices can also be determined on the basis
of competitors. It is necessary for every business entity to observe the strategies and pricing aspects
of rivalries as on that basis, changes could be made to prices of existing products. At the same time,
it is also essential for Asda to conduct survey as through that availability of competition can also be
determined. Focus should be given to pricing element because that influences purchase decision of
customers. Contrary, selling price can also be determined afterwards adding all the costs included
while producing the specific goods and products at market place.
3.4 Ways in which promotional activities are integrated to achieve the marketing objectives
Asda has been adopting different promotional activities only to promote the products
because this aspect will assist the business to maximize sales and revenue ratio. Promotional
strategies should be adopted after considering the element and usefulness of products. Thus,
promotional strategies need to be integrated with the basic elements of marketing mix (Gevlani and
et.al., 2008). Integration of promotional aspects with elements of marketing mix has been stated in
the below section:
 Saucy chips are promoted at market place with online sources which shows integration of
place and promotion aspects.
 Furthermore, the use of advertisement reflects integration of product and promotional
aspects (Chand, 2010).
 Advertisement can be conducted as people highly prefer to watch television frequently in a
day. The advertisement of salty chips can drive the customers to purchase the same and as a
result, it can enhance sales ratio as well.
 Furthermore, door to door selling can also be adopted where in Asda can promote the
services by selling the products directly to customer's door step. This can aware the
customers more about the availability of products.
 In order to augment the sales and revenue ratio, it is essential for Asda to adopt 24/7 services
where in chief emphasis should be given to proper customer care services.
 Door to door selling shows integration of place and promotion elements with the overall
promotional criteria of business entity.
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3.5 Analyzing additional elements of extended marketing mix People: People are the personnel members of Asda who are entitled to deliver services to the
customers and in the present case also, people are entitled to meet the demand of customers
through proper supply (Strouse, 1999). People are also entitled to deliver proper customer
services to the clients so that all their queries and issues can be resolved. At the same time, it
is also essential for people of Asda to change the way of approaching the clients. Process: While managing demand and supply aspects, all the staff members of Asda have to
adhere with suitable processes in every sphere. Every aspect related to organizational
process should be managed according to time as customers do not prefer to get delayed
servics.
 Physical evidence: Several sorts of tangible services should be delivered to the customers as
when they purchase salty chips, they should get satisfaction about the quality aspects.
Further, intangible services should also be delivered where Asda has to make sure that
customers are satisfied after having chips (Saunders and et.al., 2004). While advertising the
services, Asda has to make sure that properly everything is demonstrated to the clients. The
business has to emphasize on interior decoration aspects of the retail stores so that it can
give good impression to the clients. Proper facilities should be there regarding car parking
and luggage handling and that should be risk free and secured enough.
TASK 4: BE ABLE TO USE THE MARKETING MIX IN DIFFERENT
CONTEXTS
4.1 Planning marketing mix for two different segments in consumer markets
As per the present case, Asda has taken two market segments where the first one is on the
basis of age aspects and another is about income aspects (Alserhan, 2012). Thus, as per the
segmentation criteria, it is vital for business to use all the elements of marketing mix in an effectual
manner and the discussion is stated in the below mentioned section:
 Simply salted chips should be the main product for kids because they prefer it the most;
however, spices and saucy chips can be developed for youngsters since they often prefer to
have such products (Kotler, 2008).
 Prices should be affordable for kids because of low purchasing power; however, appropriate
prices can be determined for youngsters as they have enough power to spend on snacks and
refreshments. ?????
 In order to enhance selling of the product at market place, Asda can place simply salted
chips nearby the school campus as per the convenience of kids; however on the other hand,
to place spicy chips for youngsters, Asda can place it nearby the shopping malls or in retail
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stores (Pires, Stanton and Rita, 2006).
 Attractive elements should be used in the advertisement while promoting salty chips for the
kids; however, online promotional techniques can be used in case of youngsters.
Segmentation criteria
Children
 Focus should be given to promotional
aspects.
 Prices should be as per the purchasing
power of customers
 Convenient sources should be there
Adults
 Social media marketing tools can be
adopted for grabbing the attention of
clients
 Proper concern should be given to place
element
 Asda should emphasize on quality
aspects
4.2 Difference between B2B and B2C market
However, on the other hand, notion of B2C allows business to do marketing directly for
customers with the formation of different strategies.
Business to Business marketing
 Business to Business marketing is different with that to Business to Customer marketing
because of the major purpose and type of services involved.
 Business to Business marketing involves trade relations between business entities so that
firms can sustain in the market for longer span (10 Differences Between B2C and B2B
Marketing, 2013).
 In Business to Business Marketing, business entities focuses on sending appropriate
message aligned properly with the determined goals and objectives.
Business to Consumer Marketing
 The concept of B2B covers lengthier message whereas the concept of B2C covers short
message.
 In case of Business to Consumer marketing, there should be direct relationship between
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business entities and consumers because through that only, direct sale of goods and services
can take place (Chand, 2010).
 B2C marketing has more scope of success because it involves direct selling of goods and
services to the customers.
 Businesses that deliver direct services to customers need to emphasize on quality aspects
which also aids in acquiring long term sustainability
Difference between B2B and B2C Marketing
 Apart from this, at the time when business focuses on B2B segmentation, they realize these
businesses work hard to streamline the buying process in order to save time and money.
 B2B sales prospects are found in small vertical markets and that also requires consultative
selling. It consumes much time to sell products.
 B2C markets are typically large broad markets where in the business entity sells products
directly to the consumers.
 In B2C selling, retailer directly sells the product to the consumers and they have to
convince the consumers to enhance the ratio of sales.
4.3 Differentiating between international marketing and domestic marketing
Marketing is a practice that comprises of several activities which aids the business to
promote products and services effectively at market place. Thus, looking towards the difference
between international and domestic marketing; following points have been stated:
 In the realm of technology, international marketing has been acquiring greater benefits
from technological aspects and this further enhances the scope of success (Gevlani and et.
al., 2008).
 As far as the market share is concerned, businesses operating in domestic market have less
scope to acquire more shares; however in case of international marketing, the scope is
higher in terms of retaining market share (Doole and Lowe, 2008).
 The ratio of issues and barriers are high in international marketing and this leads businesses
to consider trade policies at a higher extent. However, issues are fewer in domestic
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marketing.
 Business has more opportunities of deriving competitive advantage in domestic marketing
as compared to international marketing due to the presence of competition.
 Organizations that are operating business in international market face more issues related
to cultural aspects because people follow different cultural beliefs.
 Lastly, to conclude the differences between both types of marketing, it can be said that
businesses have to focus on globalization policies more when they enter in global
marketing.
CONCLUSION
Summing up the research study, it can be stated that while marketing the products and
services, businesses needs to focus on market orientation process so that the level of competition
can be ascertained. The activity is also vital to conduct so that risks and uncertainties prevailing at
the market place can be identified. It is also essential for the business entities to make changes in
the existing policies and strategies so that success and growth opportunities can be encouraged. The
present study has discussed different techniques through which products can be successfully placed
and promoted at the marketplace. Main motive of business should be concerned with the customer
convenience so that they can be retained for longer span.
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