ANGLIA POLYTECHNIC UNIVERSITY, BUSINESS STUDIES FIELD
Assignment for: Business-to-Business Marketing
Semester 2, 2003/2004, Travemuende, 28 May 2004

Major differences along the supply chain between
B2B and B2C marketing with regard to FMCG

by

Sebastian Meyer

1. Introduction 1

1.1. Explanation of the term ‘Fast-Moving-Consumer-Goods’ 1
1.2. B2B and B2C with regard to the Supply Chain 1

2. B2B versus B2C marketing 2

3. Marketing Mix 2

3.1. Product 2
3.2. Price 3

3.2.1. Price and Product 4
3.2.2. Price and Distribution 4
3.2.3. Price and Promotion 4

3.3. Place 5
3.4. Promotion 5

4. Customer and Markets 6

5. Competition 7

6. Conclusion 7

Bibliography 8

Appendix 9

1. Introduction

It is the objective of the present assignment to identify, to analyse and to evaluate the major differences along the supply chain between business-to-business (B2B) and business-to-consumer (B2C) marketing. In particular, organisations which are involved in the manufacture and retailing of fast moving consumer goods (FMCG) should be examined.

1.1. Explanation of the term ‘Fast-Moving-Consumer-Goods’

Fast-moving-consumer-goods are mainly products that we can find in supermarkets (Table 1). Furthermore, these products are sold in a fast way so that the shelves must constantly be replenished (www.moneyglossary.com). Customers do not show high loyalty to fast-moving-consumer-goods.

1.2. B2B and B2C with regard to the Supply Chain

As we mentioned above, the differences between B2B and B2C along the supply chain are to be assessed within this work. The stages of a typical supply chain are supplier, manufacturer, distributor, retailer and customer (Chopra 2001 p.5). With regard to Figure 1 which provides an overview about a more detailed supply chain we can state that the first five steps belong to B2B marketing whereas the last three steps beginning with distribution belong to B2C marketing.

2. B2B versus B2C marketing

The most important differences between B2B and B2C marketing are going to be highlighted within this part in order to differentiate between both terms. Obviously, the most significant difference between B2B and B2C marketing is the manner of advertising concerning products and the buying decision. In B2B markets the quality, the price and other economic aspects are of interest. B2C markets in contrast are acting with the AIDA model which is more directed to the final consumer (Kotler 2001 p. 891). Furthermore, B2C markets are characterized by unpremeditated buying whereas B2B markets tend to be more planned and controlled. Hutt mentioned in his book ‘Business Marketing Management’ that ‘Business markets are markets for products and services, local and international, bought by businesses and government bodies, and institutions for incorporation, for use, or for resale…’ and ‘The only markets not of direct interest are those dealing with products or services which are principally directed at personal use or consumption such as packaged grocery products, home appliances, or consumer banking’ (Hutt 2001 p. 4). In B2C marketing companies and organizations sell their finished products to the final consumer.

3. Marketing Mix

At this point, we commence the evaluation of the major differences between B2B and B2C marketing along the supply chain with the marketing mix. The marketing mix is a combination of marketing approaches with the aim of success on the market concerned. McCarthy popularized a classification of approaches in four groups, the so-called ‘four P’s’ (Kotler 2001 p. 150). These are product, price, place and promotion (Figure 2).

3.1. Product

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