Posts made in December, 2012

B2C Characteristics

Posted by on Dec 29, 2012 in Uncategorized | 0 comments

The B2C (Business to Consumer) model of selling is advantageous for consumers and businesses.

From Chron.com:

Characteristics

The B2C model focuses on direct selling and marketing between a business and a consumer via an e-commerce website. A lower purchase volume of higher priced products typically characterizes B2C companies. Since the model depends on individual transactions and eliminates the wholesale purchaser, the company can make a higher profit while the consumer spends the same amount of money or sometimes less. B2C is effective for smaller companies since individual consumers are not as concerned with company recognition as they are with getting the product for the best price.

Types

B2C companies divide into five major categories: direct sellers, online intermediaries, advertising-based models, community-based models and fee-based models. Each type is so different from the others that they are not directly comparable. In fact, some B2C businesses utilize more than one type to reach different audiences.

Direct Sellers

Direct sellers, such as online retailers, sell a product or service directly to the customer via a website. You can further divide direct sellers into e-tailers and manufacturers. E-tailers are electronic retailers that either ship products from their own warehouses or trigger deliveries from other companies’ stocks. Product manufacturers use the Internet as a catalog and sales channel to eliminate intermediaries.

Online Intermediaries

Online intermediaries perform the same function as any other broker. The business allows non-B2C companies to reap some of the benefits. Brokers offer buyers a service and help sellers by altering the price-setting processes, according to economics professors Thierry Pénard of the University of Delaware and Michael A. Arnold of the University of Rennes in Rennes, France.

Advertising-Based Models

Popular websites rely on advertising-based models. These websites offer a free service to consumers and use advertising revenue to cover costs. They draw a large number of visitors, making them ideal advertising streams for other companies. Advertisers will pay a premium to sites that deliver high traffic numbers.

Community-Based Models

Community-based models combine the advertising method that relies on traffic at sites that focus on specialized groups to create communities. Community sales and advertising take advantage of social and network marketing by focusing on specific groups that want specific products. For example, sites used by computer programmers are perfectly placed to advertise computer hardware and software products. At least one social media website uses member information to target advertisements to interests and locations.

Fee-Based Models

Pay-as-you-buy or paid subscription services fall under fee-based models. The most common of these are online subscriptions to journals or movie sites such as NetFlix. These companies rely on the quality of their content to convince consumers to pay a usually nominal fee.

Griffin, Dana. “Explain the Business to Consumer Model.” Chron.com.  Accessed 12/29/2012. http://smallbusiness.chron.com/explain-business-consumer-model-2258.html

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Consumer Goods Companies expanding their Marketing Techniques

Posted by on Dec 18, 2012 in Uncategorized | 0 comments

Direct two-way relationships are being fostered using social media and mobile device marketing techniques by Consumer Goods Companies.  A recent report titled “New Directions: Consumer Goods Companies Hone a Cross-Channel Approach to Consumer Marketing” indicates that an increasing number of high-level executives will be working to increase brand loyalty with the end consumers via the use of social networking, mobile devices, and the Internet.

From the report:

“To attract and engage the consumer, consumer goods (CG) manufacturers are increasingly exploring ways to integrate new channels such as mobile and social media into their marketing mix,” said Cassandra Moren, senior director, consumer goods industry marketing, Oracle. “Direct to consumer interaction is growing, as evidenced by the research, and it is critical in today’s highly-competitive global economy that consumer goods companies take advantage of every touch point with the consumer. As the EIU report shows, this now involves a combination of physical and digital environments, including social media and mobile platforms.”

Also,

The report found that the use of social and mobile channels are increasingly helping CG companies become more comfortable with the direct-to-consumer selling model, with the number of companies selling products directly to consumers expected to increase from 24 percent to 41 percent over the next 12 months.

The Internet is becoming a powerful tool in the connection between manufacturers and their customers.  It allows for strong two-way communication between manufacturers and their customers.  It is not a complete replacement for old fashioned sales techniques, but is a great accessory to expand their presence.

Hat tip to Marketwire

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