Businesses that rarely apply marketing tools are more doomed to failure. Marketing principles are significantly influenced by consumer decision making in business to business marketing. Individuals and businesses engage in the decision-making process at different levels. Consumer decision-making processes are often affected by consumer behavior concerning recognition needs, information search, alternative evaluation, and purchase and post-purchase behaviors. Consumer decision to buy a product depends on involvement, time, cost, information search and the number of available alternatives. Nonetheless, consumer decision-making processes are influenced by culture, social, individual and psychological influences. Business to Business marketing customers can be categorized into producers, resellers, government, and institutions. Business and consumer markets are characterized by volume, demand, location, promotion, negotiation and the buying influences. It is significant for an entrepreneur to understand business buying behaviors roles such as initiator, decider, influencers, purchaser, gatekeepers, and users.
The channel intermediaries suitable for consumer decisions in business to Business marketing are agents, and brokers and merchant wholesalers. The agents and brokers often influence consumer’s decision-making process as they act as primary sellers that either connect the producer to the consumer or represent the manufacturer. Agents influence consumer decision-making socially, individually and psychologically (Si and Kapoor, 2014). Most people always don’t believe in the products sold by broker and agents due to the stereotype of agents being too expensive and untrustworthy (Freedman, 2010). Merchant wholesaler’s influences consumer business to business decision-making power as they determine consumer interest in purchasing goods. More often, consumer especially organizations will prefer buying products in bulk due to its low price and time-saving factor.
The channels responsible for consumer decision making in business to business marketing are direct channel, wholesalers, broker and the retailer channel. Direct channel involves the direct distribution of products to consumers, agents, and retailers. The retailer channel is interconnected to either direct channel, wholesalers, and brokers as the retailer can purchase goods from the channels and sell to the consumer. The wholesaler is connected to the retailer and the consumer. The wholesalers transfer goods to the retailers who in turn sell it to consumers; however, the wholesalers may have some connections with the agents. The agent is connected to the wholesalers who sell produce to retailers who then transfer the products to consumers. Even so, the agents may also have direct connections with the wholesalers, retailers, and consumers to the product suppliers.
The standard of distribution intensity that is more appropriate for consumer B2B decision making is the selective distribution. During the decision-making process, the consumer has a choice to choose from limited outlets within a geographical location. Selective distribution allows the customer an opportunity to choose the best product of their choosing. Selective distribution works best in cases where consumers have the preference for a product brand.
The primary factors to consider while selecting a distribution are; channel partnering, logistics, and supply chain, warehouse and material handling and transportation. Channel partnering enhances the marketing cost in the verge of satisfying and creating a customer competitive advantage. XYZ Company should consider applying channel partnering in increasing stocks replenishments, improving the quality of service delivery to the customer and reducing the total cost of channels. Logistics and supply chain is the management that enables companies to supervise activities performed by stakeholders so as to enhance customers’ satisfaction. Logistics and supply chain management satisfies customers demands, promotes efficient sourcing and procurement. Transportation as a distributive factor will enable XYZ Company to reduce the relative cost and minimize the transit time while increasing reliability, accessibility, and traceability.
The most relevant communication strategy in B2B consumer decision making is the integrated marketing communication; as it promotes consistency and an integration of enterprises communication to customers by use of different communication channels (Clow, 2004). Integrated marketing communication is a professional ethical practice as it is aimed towards ensuring balance while fulfilling clients needs (Finne and Grönroos, 2017). Integrated communication strategy promotes continuous learning as the producer can learn about the factors that influence consumer decision making and thus develop an appropriate strategy to improving their business. Integrated marketing communication will ensure coordination and coherence among the communication channels in the organization (Batra and Keller, 2016). Integrated marketing communication is appropriate for the scenario as it cuts across several departments thereby promoting corporate communications, increased product marketing, and demand and improves on investor relations (Kitchen and Tourky, 2015).
XYZ Company should use product advertising in advertising it’s product in Australia. Product promotion is a strategy that is aimed towards promoting the value of certain goods and services. Product marketing improves market value and exposes goods worth to potential buyers (Sooper Articles, 2017). Pioneer advertisements stimulate the demands for a new company product into the market while competitive demand influences will impact the market demand for products sold by XYZ Company. Product advertising will also enable XYZ Company to compare the competing market brands and influence company decisions on the most suitable approach to advertising their products.
The main factors that XYZ Company should consider in choosing the media type are; contact cost, Frequency, reach and audience selectivity. The contact cost should be influenced by the firm ability to pay for the adverts and the target marketability to access the adverts. For instance, if most of the target market are reliant on TV and newspaper as the primary source of information, the company should be able to meet TV cost and ensure that the prices are target market cost friendly. The company should also choose a media advertising criterion that is likely to reach multiple people by one exposure. Frequency in media advertisements refers to the number of times a communication has been relayed (YourArticleLibrary.com: The Next Generation Library, 2017).The company should ensure that their adverts are held for an extended time in different media platforms. Audience selectivity in media advertising is geared to the target market. The company should identify the specific Audience it intends to reach and develop an appropriate advertisements method that will be readily available to such audience. For example, if the company expects to reach the youths it should adapt social media advertising.
Conclusion:
B2B consumer decision making is the most relevant business strategy in the modern competitive world as it promotes the global growth of the business, encourages competition and supports an integrated communication between producers and consumers. Businesses and individuals should, therefore, adopt the B2B marketing approaching in choosing an appropriate strategy to market and purchasing quality products.
Batra, R. and Keller, K.L., 2016. Integrating Marketing Communications: New Findings, New Lessons, and New Ideas. Journal of Marketing, 80(6), pp.122-145.
Clow, K.E., 2004. Integrated advertising, promotion, and marketing communications. Pearson Education India.
Finne, Å. and Grönroos, C. (2017). Communication-in-use: customer-integrated marketing communication. European Journal of Marketing, 51(3), pp.445-463.
Freedman, R. (2010). Buyers and Sellers Speak Their Mind; Your customers are talking. Are you listening?. THE NATIONAL ASSOCIATION OF REALTORS. [online] Available at https://realtormag.realtor.org/sales-and-marketing/feature/article/2010/05/buyers-and-sellers-speak-their-mind [Accessed 9 Jun. 2017].
Kitchen, P.J. and Tourky, M., 2015. Integrated Marketing Communications: A Contextual International Advertising Approach. In Integrated Communications in the Postmodern Era (pp. 19-48). Palgrave Macmillan UK.
Si, M.S., and Kapoor, M.M., 2014. Advertising Effectiveness on Consumer Decision Making & Decision Making: Study of Insurance Industry.
Sooper Articles. (2017). The Importance of Advertising in Modern Marketing. [online] Available at https://www.sooperarticles.com/business-articles/advertising-articles/importance-advertising-modern-marketing-1537617.html [Accessed 9 Jun. 2017].
YourArticleLibrary.com: The Next Generation Library. (2017). Selection of Advertising Media for a Company (14 Factors). [online] Available at https://www.yourarticlelibrary.com/advertising/selection-of-advertising-media-for-a-company-14-factors/48659/ [Accessed 9 Jun. 2017].
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download