W2D2
How do organizational and consumer markets differ?
The organizational and consumer markets vary in various things; they both desire to buy things so as to meet their daily duties. The difference is in how and why an organization buys goods and services alongside how a consumer shops. The contrast that exists is significant if one desires to invest in both markets.
Reason for Purchase
Organizations buy goods so as to apply them in their daily tasks and to sell them again to consumers, while on the other hand the consumers buy goods for their own use. Organizations similarly buy more raw materials that are applied in manufacturing than the consumers who do not have the facilities and skills to apply the raw materials and use them as a final product (Writing, 2012). The organizations buy good in bigger sizes than the consumers do and are controlled by the desire for manufacturing resources. The clients on the other hand are controlled by their desires. It is possible to persuade consumers to buy a good or a service that he or she does not require by application of peer pressure, while for the organizations it is quite hard to convince them to buy something that they do not need, more so when one involves the purchasing section that is responsible for what is spend.
Choices and Use
Consumers normally buy goods for varied reasons when compare to organizations and are acquitted to excess autonomy in selecting what they want. Like for instance the consumer is able to buy any chair that he finds suiting to his budget. While the organizations on the other hand buy goods on the need, they are not controlled by the budget but the need. Like buying a table for the head office is bound by the type and use and not price.
What are the implications of both of these kinds of differences for developing marketing programs?
Considering the differences that exist between the consumer and organizational markets on purchase reasons for goods and services as well as the choices and use, there are varied implications that they have on the developing market program.
The organizations control the market supply of goods in the market, considering that they buy goods and sell them to consumers. They hence have a great impact on the thriving of the market. This makes them to similarly have control on the price of the goods being offered depending on the law of supply and demand. Consumers on the other hand are buy goods or their needs hence help to keep the market alive. Organizations buy raw materials based on their demands in relation to the consumers, who are not able to get the same raw materials for their own use. This has the implication of offering the client well processed goods for the needs and hence developing the market.
Consumers are driven by their desires to buy goods while organizations are driven by their desire for manufacturing resources. This two manufactured goods are meant to relate as the consumer is not able to use raw materials without being processed. This hence leads to the organization markets controlling the desire of the client and consequently making the market diverse.
Considering that the consumers are controlled by their desires in selecting what they want and when they want it, they are able to choose one organization over the other leading to stiff competition. This competition is targeted at attracting the customer. This results to the organizations resulting to stringent advertising measures to attract the consumer; like free samples, promotions among others. On the issue that consumers are controlled by their budgets while the organizations are not; consumers are bound to go for products that they find cheaper while doing away with the expensive products. The developing markets is hence bound to succeed or fail depending on the where more investments by the organizations have been made.
Bibliography
Writing, A. (2012). What Are the Differences Between the Organizational and Consumer Markets? Consumer and Marketing.
