B2B B2C Marketing Essay Example

B2B B2C Marketing Paper List Of Contents 1Introduction2 2Marketing2 2. 1Direct Markteting2 2. 2Digital/Internet Marketing3 2. 3Advantages Disadvantages3 3Ethical and Legal Issues4 3. 1Ethics4 3. 2Legal Issues4 4B2B B2C5 5Databased Marketing8 6Conclusion8 Introduction â€Å"Marketing is the management process responsible for identifying , anticipating and satisfying customer requirements profitablyâ€Å" (The Chartered Institute of Management) Marketing is as old as civilisation itself. The first use of â€Å"Marketingâ€Å" as a technical term was between 1905 and 1920 by american universities. Now the days there are many different subgroups of Marketing. Two of them is Direkt and Internet Marketing. This report is about Direkt and Internet Marketing with a focus about changes in the past, which includes also the society changes, the reason why it grows and the benefits. Furthermore the report, based on four case studys, shows the difference between business to bussines (b2b) and business to consumer (b2c) plus a short overview of Databases Marketing. Marketing Direct Markteting Direct Marketing is an interactive system of marketing that uses one or more advertising media to effect a measurable customer response or transaction at any location and stores information about that event in a database. For many years, marketers loosley defined marketing as identifying and satisfying customers neets at a profit Up to the 50s and 60s, mass marketing and mass communication dominated marketing practice. (Brian Thomas Matthew Housden 2011 p. ) Now the days the system changed, Not in the way in which companys look at their customers but rather in they way how they present there products. There is now a dialog between the company and the customer, which allows the company to create, for example advertising, which fittes perfect to the customers. It is, of course mass production, but in a way that satisfy the customer from the beginning. Direct Marketing needs a special, strategic planning. The short life expectancy of the Marketing Director i s the reason. We will write a custom essay sample on B2B B2C Marketing specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on B2B B2C Marketing specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on B2B B2C Marketing specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Probably up to 3 years a Marketing Director works for a company. In this short time the department must implement everything. This claims a hard disziplin from everyone. Digital/Internet Marketing Digital Marketing is a tool to promote products using all ways of digital advertising channels to reach consumers. The way of reaching the customers is by using for example Internet, TV and Mobile. Exactly these medias, especialy Internet, gives the company a big place to run free. Internet Marketing is a subgroub of the Digital Marketing. This type of marketing uses various online advertisements to drive traffic to an advertisers website. banner advertisements, pay per click (PPC), and targeted email lists are often methodes used in Internet marketing to bring the most value to the advertiser (Business Dicitionary) Advantages ; Disadvantages There are a couple of advantages for the company as well as for the customers. The customers is now in a postition, that allows him to shop 24 hours a day from anywhere without going to the store physically. That also ncludes a interactive and immediate communication between consumers und the company. Now they can interact with the sellers site to find the information about spezific products, or services they desire, then order or download them on the spot. Companies can also interact with customers to learn more about their needs and to build customer databases. which are helpfull for a targeted advertising. Beside this the expense of maintaining, for example a physical store, is not of further interest. This can lower costs. Digital catalogs cost less to produce than printing. This includes a greater flexibility. Unlike a paper catalog whose products and prices are fixed until the next printing, an online catalog can be adjusted daily or even hourly, adapting product availability, prices, and promotions to match changing market conditions. (Philip Kotler Gary Armstrong 1998) But there are also a couple of disadvantages. The internet is a unregulated (in many country also lawfree) medium. The control of such a great medium is impossible. Spam and Fishing are only two of million ways to avoid the legality. This is a problem for customers as well as for the company. Beside this the internet can only reach certain consumers types. For example oldfashioned people are not in the target. Even if everything is good, the internet user need technical support or the company itself. (Lisa Spiller, Martin Baier 2005 p. 209) Ethical and Legal Issues The regulation enviroment of direct marketing includes the two very important areas of ethical and legal issues. Ethics are the moral principles of conduct governing the behavior of an individual or a group. Morals are often described in terms of good or bad. To be ethical in marketing means to conform to the accepted professional standards of conduct. (Lisa Piller, Martin Baier 2005 p. 289) Ethics Years ago the DMA (Direct Marketing Association) established a guidline for direct marketers. From honesty and clarity offer over telephone marketing to fundraising the guidline leads marketers through the ethical issius of direct marketing. (www. the-dma. org) But the Internet is not a place where the word ethic carrys great weight. Legal Issues Privacy legislation actually began over a century ago in 1890 when Smauel Warren and Justice Brandeis wrote a law reviwe article advocating that a person should be protected from having personal matters reported by the press for commercial reasons. (Lisa Spiller Martin Baier 2005 p. 294) Marketers have always had an interest in knowing consumer information. Now the days nothing changed. The Need of perfect information is present and priceless. From discount cards to surveys comapanys do everything to get information from their customers. Even the Internet is a place of anonymity. The webpage owner knows exactly where you come from (IP) and can see, what you did on the page, what you bought and what page you went to after finishing your shoppingtrip. One example is Amazon. If you are looking for a CD they show you what other customer bought, after they bought this special CD. The can influence you to buy another CD even though you only want to buy only one. For that reason many countrys remitted many laws against this Spam. Another big point is the copyright. The copyright is one of the important things to do while using Internet Marketing . To save the rights means to save your company. B2B B2C Purely business to business means a relationship between two or more companys. Behind every consumer purchase in a modern economy there is a network of business to business transactions. Even an epparently simple transaction at the supermarket is only made possible by a web of supporting business to business transactions. This network, largely is mostly invisible to the final customer. The key distinguishing feature of a business to business market is that the customer is an organisation rather tan an individual consumer. Different from business to business is business to customer. Relating to an advertising or marketing program aimed at businesses doing business directly with consumers as opposed to other businesses. The term is most commonly used in reference to commerce or business that is conducted over the Internet between a commercial enterprise and a consumer. (www. qfinance. com) Examples for B2B: FedEx FedEx offers and prices its delivery services in a variety of categories including, several years ago, a category called Priority1. To expand its market, increase its penetration, and hold its present customers for this premium service, FedEx conceived a business to business direct mail campaign to announce a new discount schedule. Based striktly on its potential value in the immediate future, the direct mail program was divided into three segments: 1. Frequent users of Priority 1: 19,126 individual customers 2. Infrequent users of Priority 1: 121,705 individual customers 3. Other FedEx customers who had never used Priority 1: 63,431 individual customer The symbol to be used for dramatizing the Priority 1 service was the same for all three market segments: a 5-pound reproduction of the 1913 exercise weigt. Frequent user of Priority 1 received the exercise weight immediately as a goodwill gift; infrequent user had to request it; nonusers received it as a premium with the purchase of Priority 1 service for the first time. Frequent useres were also asked to identify other prospects and decision makers within their own organisation. A total of 7,044 (24. 1 percent) of the 29,126 frequent user revipients of the promotion did just that. Of the 121,705 infrequent user contacted, a total of 25,985 (24,0 percent) responded by requesting the gift, and , in the process, they also supplied 14,723 names of new prospects within their own organisation As a result of this new system FedEx got an immediate sale of 500,000$ on the new customers alone. (Lisa Spiller Martin Baier 2005 p. 324) Microsoft The MediaGuardian Microsoft Office’s overriding strategy was to create relevance between the Microsoft Office product and the everyday working lives of the target audience, marketing professionals. However, it was recognised that standard advertising for this product to this audience would generate low interest and response. MediaGuardian. co. uk and Microsoft Office co-branded bespoke microsite focusing on ‘The pressures of marketing’. This comprised a series of articles commissioned by MediaGuardian, focusing on real life working issues rather than technology themes. For example: how to capture creative ideas, home working, and making email secure. Each article incorporated links to the Microsoft Office site where interested users could find more information. The Media Guardian solution fully exploited the great qualities of the interactive medium and allowed Microsoft a platform through which to engage the audience and demonstrate its products rather than simply talk about them. Once users attention had been grabbed, the highly relevant content of the online events further educated users about the new version of Microsoft Office and how it could make life easier. Examples for B2C: Hitachi Hitachi wanted to establish a more direct link to consumers through its business to consumer operations while minimizing the negative impact on its core business. Despite difficult economic conditions, the 2008 holiday shopping season proved to be a great success. The Hitachi Consulting team created an integrated B2C eCommerce strategy that provided a multi-year blueprint for supporting target growth and increased profitability. The corresponding technology strategy was designed to support a planned expansion that would include B2B capability, in addition to increased B2C functionality The team then designed and implemented the expanded eStore, according to the long term technical vision As a result of the transition support and enhancements Hitachi Consulting provided, the eStore was ready. The client realized significant success during the four-day period between Black Friday and Cyber Monday, including: ? a more than 35 percent increase in orders, ? a greater than 100 percent increase in site visits, and ? an over 50 percent increase in revenue. (www. hitachiconsulting. com) TreadMoves The challange for TreadMove was to promote their videos by using a small budget without using the typical mass media retail channels. The team looked out for chatroomes realated to fitness where they searched for information about the needs of these fitness adicted people. After collecting the information they produced the first set of videos. To lower the cost of promotion, the team decided to use the same chatrooms. By uploading Videos and creating topics, they informed the users. This was the right way. Once the initial two videos were successfully introduced to the market, the TreadMovers team took advantage of its most valuable recource, its customer database. Every person who bought a video was now informed by mail, whenever a new video was on the market. They got a 20% return of response whithin only two days. The next step was to get more consumer email addresses. This was done by using memberinformation of gyms, given by the owner. As a result of being able to demonstrate significant web site traffic as well as a 30% repeat purchase rate, the TreadMoves team investigated other channels of distribution. Today, TreadMoves is sold via multi-channel direct marketin in addition to the TreadMovers webpage, customers can also buy the videos from on-line retailers like Amazon. om, multiple cataloges such as Collage Video an brick-and-store retailers like Barnes Noble All this by minimum costs of 100$ for marketing (web page costs). (Lisa Spiller Martin Baier 2005 p. 27) These are four examples of succesfully B2B and B2C strategies that show, how importent marketing is, to business partners as well as to consumers. Databased Marketing Communicating, promoting, and selling activitys based on a databased managment system which stores and re fines data generated by a companys routine marketing and selling efforts. The databased managment system construcs customer profiles based on their personal, demographic, geographic, and psychographic characteristics. ,enabling the firm to direct its marketing efforts with greater accurancy. (Business Dictionary) The growth of database marketing has been facilitated by powerfull processing capability and immense strorage capacity of todayss computers. The strengths of database marketing is because it is measurable, testable, selective and flexible. There are no fix costs beside the costs for the programm the company has to buy (SAP, Oracle etc. but a performance guarantee and this can be done very quickly. Data can be primary data, secondary data or external data. (Lisa Spiller, Martin Baier 2005 p. 60) Conclusion Direct Marketing, especially Internet Marketing has become a big and importent part of the marketing. Now the days there is no way arround. Nearly everbody promotes his company, brand or whatever in a digital way to get more and more customers. E ven the smallest one, like a pizza delivery service. But as mentioned above, there are many traps. The future is now and to serve a good service, nearly everybody has to jump on this big train. The way to do this is up to yourselfe. Internet Marketin, as opposed to the classic Direct Marketin, is cheaper, faster, more efficent and 24/7/365 available. Brian Thomas ; Matthew Housden Direct and Digital Marketing in Practise 2011 Business Dictionary 2010 Philip Kotler ; Gary Armstrong Grundlagen des Marketing 1998 Lisa Spiller ; Martin Baier Contemporary Direct Marketing 2005 The Chartered Institute of Management www. hitachiconsulting. com www. qfinance. com www. the-dma. org