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Marketing mix for consumer market

Paper Type: Free Essay Subject: Marketing
Wordcount: 1862 words Published: 1st Jan 2015

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The total market can be divided in two sections consumer market and the business market. The consumer market is where the marketing targets the end user of products and services. The consumer market can be further segmented based on various characteristics like geographic, demographic, behavioral and psychographic. Geographic segment of the consumer market classifies the market in various other dimensions like location of the region, size of the region, rural or urban, and climate of the region. (Ramesh., 2008)Marketing strategies for each of the segment vary for each segment. Quantity of each P of the marketing mix is changed according to the segment in which it will be implemented. In the rural and urban consumer market the marketing mix will be different. A company has many products and services that are different for each segment of the customer. The marketing strategies of these products are different. These are sold, and promoted in different ways and places. The pricing strategy also varies. (Etzel., 2010)


Rural Segment: Product is the first element of the marketing mix. Products and services offered to the rural consumer market should meet the requirements of the customer. A three or five star hotel and products or services that require certain level or technical knowledge in the user cannot grow in the rural segment. (Nobilis, 2008)

Urban Segment: The urban consumers are technically advanced so the product must be designed accordingly. Standard of living of this segment of consumer is high they always strive for maintaining the social status so products in this market segment should comply with the lifestyle of the customers. (Nobilis, 2008)


Rural Segment: Pricing strategies of a product should be decided according to the market segment where it will be sold. People of the rural areas cannot provide high cost for a product of there daily use so the price should be lowered down to increase the sale of the product and gain competitive advantage in that segment. (Nobilis, 2008)

Urban Segment: Urban consumers generally used to switch over the product of different companies and they think that the higher the price the costlier the product. So the lowered down prices in the rural segment can be charged from the urban segment. (Nobilis, 2008)

Product Distribution

Urban Segment: (Nobilis, 2008)Manufacturing the required product according to requirements of different geographic regions and deciding the pricing of the product is not sufficient for the company to remain competitive in the market. The third P of the marketing mix is the product distribution channel which is equally important for the success of the product of the company. In urban geographic region the distribution channel can be the dealers which will sell their products to the retailers and then to the end customers. (Etzel., 2010)

Rural Segment: whereas in the rural areas the product should be distributed directly to the retailers. Because the number of customers in the rural areas will be less than the urban regions so there is no need to involve an extra link in the distribution channel in the rural areas. (Etzel., 2010)


Urban Segment: Promotional activities of a product vary in different geographic regions. Brand name of company can be used for advertisement in urban regions as the customers in these regions are much aware of the similar products currently available in the market. (Nobilis, 2008)

Rural Segment: Massive advertising campaigns are required to promote the product in the rural areas. (Nobilis, 2008)

Difference in Marketing to Organization rather than Consumer

(Barsche, 2007)Marketing of a company’s products and services to organization and to consumer is completely different. Marketing o product to organization is better known as business to business (B2B) and marketing to consumers is called business to consumer (B2C). The products of both the marketing practice are also different from each other. A B2B marketing strategy might be used for selling a software solution to a small company whereas B2C marketing will sell products that are used by an individual consumer. Kotler (2001) says that the most important difference between the two marketing modes is the promotional activities and the buying decisions. B2B marketing is driven by relationship with the customers so the quality of product, pricing and some economical issues are taken care of. According to Hutt (2001) B2B is the marketing done for the products and services which targets other businesses, government sectors, and other institutions and organizations as potential customers. In B2C marketing final product of the manufacturer is brought in the market to sell to the end consumer. These products and services are of personal use and consumption. (Meyer, 2007)

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B2C Marketing

(Meyer, 2007)Marketing of the business that sells its products and services directly to the end user is called B2C marketing. This marketing method is used to attract more and more customers at a very fast pace. Companies employing B2C marketing use many marketing strategies like gift vouchers, displays, and internet and real storefronts to tempt the target customers to buy more and more products. The marketing campaigns of B2C marketing take interest in capturing the market share in a very short duration. The goal of B2C marketing campaign is to sell its products immediately to the end customer. The buying process of product is kept simpler in order to maintain the customer’s interest in the product otherwise a long procedure to buy a small product will divert the customer to other shop. (Murphy, 2007)

B2B Marketing

(Barsche, 2007)B2B marketing is more about building relationship with the prospective customers. This marketing process is lengthy and more convoluted. This marketing focuses on improving the value of relation between the two organizations. The B2B marketing campaigns are focused on various groups of people because they plays a very crucial role in process of purchasing the product. The target market of this marketing process is smaller and more focused. The selling and buying process in this marketing is a multi step procedure. Prospective customers are educated about the brand and quality of product by various promotional activities like newsletters, webcasts, and other white papers. Buying decision of the product taken after rationalizing the brand identity and business value of the company. (Murphy, 2007)

B2C Marketing

B2B Marketing

Product & service sold to end user

Product & service sold to organizations

Capture more market share in short term

Believes in long term relationships

The buying process is simpler

Buying decisions is a complicated process

Target market is very vast

Target Market is smaller and focused

Difference between International Marketing & Domestic Marketing

Hess and Cateora (1990) said that international marketing is the form business actions used to make products and services available to consumers across the boundaries of a nation. (Sak Onkvisit, 2004)Domestic marketing is constrained only to the market of the native country, solely targeting the domestic consumer and domestic economy of the home country. Some companies may do this marketing knowingly as a business strategy and some might do this unknowingly just to keep off the challenge of marketing in foreign countries. Very less companies use this domestic marketing. According to Paul (1966) when a company starts taking interest in the market and consumer requirements of other countries and modifies its product and prices accordingly it is called international marketing. International marketing is just a larger form of domestic marketing where a company has to deal with two different sets of diverse people. So international marketing is perceived to be composite rather than domestic marketing. Following are the areas where these both differ from each other: (Zhiwen, 2004)

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Environmental Differences

(Paul., 1966)The environment of the foreign countries where the organization is going to do marketing of its products and services may vary drastically from region to region. So the marketers must be well prepared for different challenges to be faced in other countries. Geographical, cultural, and technological environment of every country vary dramatically from each other. Requirements of consumers also changes as the demography changes from country to country. So an organization involved in international marketing has to customize its product, pricing strategies, promotion, and distribution channels for each country where it want to spread the market. (Kumar, 2002)

Different Application of Marketing Principles

In domestic marketing companies face competition only with the local competitors. But in international marketing firms has to face challenges from organizations all around the globe. So the principles and theories of marketing that are being implemented till now for local competitors now require a completely different application for the international competitors. In the international market they will face completely unusual issues hat were never encountered in the domestic market. (Kumar, 2002)

Different Legal Systems

Every country has a different legal structure. Different laws and regulations of each country create difficulties for the marketers to understand the laws of each of the countries where they are going to market their product. Laws within a country remain almost same so this is problem is not faced in the domestic marketing. (Kumar, 2002)

Different Monetary Systems

Monetary systems of each country are different from each other. So the exchange rate of foreign currency keeps varying from country to country. Thus different rates are applicable on international transactions. (Kumar, 2002)

Different Market Condition

Market conditions like demand, pricing pattern, distribution channels, promotional activities, differs from market to market. Each country can be considered as a different market as it has a completely set of these variables. So international marketing should take care of all such sets of variables and provide solution for each of them. (Kumar, 2002)

Domestic Marketing

International Marketing

Product sold only in native country

Marketing in foreign countries is also done

Similar geographic, cultural, and technical environment thus marketing mix remains almost same

Variable geographic, cultural, and technical environment so marketing mix changes accordingly

Same legal and monetary rules

These rules changes with the country

Only local competitors

Compete with global companies

Products and services remains the same

Customized product of different countries


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