“The nature of the demand for industrial products or services is different compared with consumer products and poses unique challenges”. Do you agree or disagree with the statement? Support your position with reference to an example of a company chosen from one of the following industries – automotive, telecommunications, information technology (computing), fast moving consumer goods and medical equipment.
The nature of business to business marketing differs in many areas with business to consumer marketing. The different nature of business to business marketing poses unique challenges and raises issues that differ from issues arising from consumer marketing. The nature of demand, or the characteristics of demand for business products
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Another characteristic of business product demand is the nature of demand to fluctuate according to the demand in the ultimate consumer market (Hutt & Speh, 2010). For BD, this means that the marketers in BD will need to closely monitor hospital admittance patterns and changing blood testing requirements to allow production of products accordingly. For example, the hospital admission statistics in 1984, would have to have been monitored by marketers at BD to reduce production, whereas if the statistics showed that there will be an increase in hospital admittance, then the production would need to increase. This shows how demand for business products can be more fluctuating then the demand for consumer products.
In business-to-business marketing, sometimes the marketer needs to stimulate demand for their product by stimulating the consumer of the end-product (Hutt & Speh, 2010). BD has had traditionally had a ‘bottom up’ approach to marketing, focusing on lab technicians who are the final users of their product to promote their products. When there was a need to stimulate the market, in line with introduction of a new needle, BD used this approach to target conversion of those who were using competing needle brands. This achieved significant results with 66,000 beds converting within a four month promotional period (Cespedes & Rangan, 1993). BD, by