When a consumer product is performing simultaneously within both a consumer as well as a business market, an array of challenges and advantages such as increase in audience reach can be identified. Products that are distinguished through business and consumer-goods marketing, often illustrate the predetermined differentiation of a product and the intended customer (TEXTBOOK REFERENCE).
Consequently, products such as cleaning appliances, smart phones, household and office furniture as well as computer programing are acquired in both consumption and trade circumstances, although the marketing strategies that are recommended are approached and implemented differently in reaching the intended user. The utilisation of market orientation in tolerating and adhering to consumer and business wants and needs often derive from accountability of placing consumer interests when adhering to proficiency, the competence in developing, distributing, and efficiently utilising high-caliber data on consumers and adverseries, and finally the corresponding use of organisational processes and procedures such as R&D, and assembly management. Instinctively, organisations that adhere to market sensing are judged on how efficient they are in scoping and complying to market transitions as well as predicting consumer reactions to certain marketing activities. Consequently, 3M has been widely known to possess the title of the most innovative company in the world, however their lack in efficiently ustilising market sensing through expansion in both consumer and business markets simultaneously, has established a negative stigma in emulating a repetitive stature in their manufacturing line by producing similar products such as scotch tape and post-it notes to consumer markets, whilst declining in their performance and growth attributes with their business customers, due to their lack of innovation and managing close business market relationships.
A desire in diversification of functionality, sophistication in production and the effective use of resources such as adhering to opportunistic values in R&D or strengthening product performance in maturing business organisations are main drives for many conglomerate consumer-product organisations who exploit and benefit from expansions within rising business markets. Companies such as P&G utilise this concept through their prowess’s in cleaning agents, personal care and hygienic consumer products and benefit from diversifying their product range within rising business trades. Consequently, The J.
M. Smucker Company also utilise this advantage by simultaneously functioning within both markets. Although their consumer and business markets adhere to similar products of marmalade and general fillings obtained by producers in sweets and dairy products, their marketing activities utilised in reaching these markets are dissimilar in strategy. For instance, business markets thrive on individual trading, whereas traditional marketing activities such as TV and newspapers often target consumer markets.
Quintessentially, marketing budgets in advertising are allocated more towards consumer markets, whereas business market promotions are often represented in commerce magazines and direct mail. Accordingly, these advertising strategies commonly authorise telemarketing initiatives. A significant paradigm as to why B2C markets hesitate from trading in business markets is the challenge of research and development. Consequently, advertisement through research and development prospects adhered to consumers, essentially is lessened in expenditure and is easier in reaching the targeted segment as opposed to business markets. Accordingly, marketers tend to shy away from promoting to businesses. Lessening procurement expenditure of business consumers requires effective market segmentation as well as flattery in products and services. Obtaining appropriate segments within business markets can be difficult as all segmenting exertions were targeted to consumer markets.