Identifying Differences Among Businesses

2686 Words Jun 17th, 2018 11 Pages
Identifying Differences Among Businesses

In order to identify, analyse and evaluate the major differences along the supply chain between the business-to-business (B2B) and the business-to-consumer (B2C) marketing in the manufacture and retailing of fast-moving-consumer-goods, it is important to define the different terms.

According to Wright, the supply chain can be defined as ‘the entire network of suppliers, factories, warehouses, distribution centres and retailers that participate in the process from raw materials to finished products.’(www.soltempo.com)

The fast-moving-consumer-goods (FMCG) can be defined as ‘the retail goods with a short shelf life either as a result of high consumer
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The research market

In B2B, Wright states that ‘the pressure to get industrial products with the right benefits to market ahead of the competition is the main concern’ (Wright 2004). Secondary researches such as the market, the trends are more used than primary researches as organisations’ activity is based on economic and industrial trend.

In B2B, there is a focus on making the products matching the consumer demand. Secondary researches are needed but primary researches about consumers’ psychology are more important as their wants and needs are changing over the years. (Minett 2002)

2.5. The segmentation

In B2B, customers are segmented by industry and individual company needs as they are not numerous. There are two types of segmentation, the macro segmentation and the micro segmentation. Both must provide the supplier with added value to offer.

The macro segmentation uses different factors: it distinguishes ‘one sector from another, one industry from another and one type of organisation from another’ (Wright 2004). Segmentation is by:

· type of market: industrial and/or consumer markets

· geographical area

· type of industries: manufacturing, service or agricultural industries

· public, private or not-for-profit sector

· small, medium or large companies

· products and services offered

The micro segmentation subdivides into smaller segments
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