Consumer goods marketing

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In contrast to capital goods marketing, consumer goods marketing deals with products that are to be sold to consumers , i.e. private households . Marketing for short-term consumer goods (so-called consumer goods such as detergents, groceries , chewing gum, pizza, etc.) differs significantly from marketing for long-term consumer goods, so-called consumer goods (such as washing machines, televisions, home furniture, cars, etc.).

Some manufacturers of branded goods invest a considerable part of their total expenditure on advertising, market research and / or image cultivation ( public relations ); Manufacturers of trademarks do not have such expenses.

Essence of consumer goods marketing

In contrast to capital goods marketing, the purchase decision process is often shorter and less rational. The transaction costs , i.e. the costs of initiating, concluding and maintaining transactions, are correspondingly lower (compare for example 'buying a factory' and 'buying fabric softener'). Financing and guarantees, often stipulated by law, are already fixed before or shortly after the purchase. Consumer goods marketing is aimed at the final stage of the economic process, namely the consumer; There are three types of consumer goods:

Consumer goods marketing can be distinguished from investment and service marketing by five criteria :

  • The consumer is himself a user and a demand for the product
  • It is mainly about individual decisions
  • Large number of customers
  • multi-level distribution
  • Market anonymity and mass communication. However, this criterion is becoming less important, as many retail companies also use customer cards (e.g. Payback ) to gain information about their customers' purchasing behavior , create customer profiles and address customers with tailor-made offers ( customer relationship management ).

In capital goods marketing, groups of decision-makers with different qualifications and positions often check all offers carefully ( buying center ); on the other hand, when it comes to consumer goods, spontaneous, predominantly emotional purchase decisions are often made. Example: Buy chewing gum at the checkout at the supermarket . Very few people think of chewing gum up to this point, the need is awakened while waiting and immediately satisfied.

With the help of market research , consumer goods marketing tries to analyze the needs of customers and to derive a marketing mix from them. The company has the product, price, communication and distribution at its disposal as instruments (the 4 P's: (English Product, Price, Place, Promotion)).

Since the goods and goods of the manufacturers in the consumer goods markets are largely the same and there are hardly any special products, a lot of work is done with price and communication. The standardization of many products enables the customer to easily compare them. Therefore, brand policy also plays an important role here, as the brand serves to recognize the product and helps to differentiate the product from the crowd. The brand is given a specific, consciously designed image that becomes conscious when viewed.

The quick recognition of brands is in line with the quick decision-making processes of customers.

In some market segments, for example cell phones, flat screen televisions or digital cameras, the market is under high pressure to innovate: manufacturers are subject to high pressure to bring new products to market quickly (time-to-market).

Marketing mix in consumer goods marketing

price

  • Saturated markets, price transparency, broken prices e.g. € 0.99, € 1.98,
  • Dealer margins, strong competitive pressure, price-sensitive customers, for example. How do customers react to a price increase at XY? Do you have a high level of brand loyalty or are you switching to a substitute product ?

In the event of a price change, the resulting change in sales and turnover depends on the price elasticity of the respective product. This describes and explains economics .

distribution

The choice of the form of distribution depends on the chosen corporate strategy and can therefore have a variety of reasons. A distinction can be made between two forms:

  1. Direct sales
    The direct sales take place without the involvement of dealers who are installed between customers and the company. Example: Vorwerk only sells its vacuum cleaners through its own representatives (commercial travelers). The advantages of direct sales are absolute customer proximity and excellent management of activities. Appropriate incentive systems can be used to target the seller. Furthermore, they only advertise a company. The high effort and costs have a disadvantageous effect.
  2. Indirect sales
    In indirect sales, one or more dealers are placed between the customer and the company, depending on the characteristics. Advantages of this alternative are the area coverage and the spread, since the branch network of the dealers is used. The disadvantage is that the possibility of influencing the placement and scope of advertising for the products at retailers is limited.

Installed incentive systems can mitigate these effects, but of course complete control is not possible. Furthermore, the pricing is limited and the dealer's margin must always be added to the actual selling price .

communication

How is the product advertised, how is the target group reached? Radio, television, print media, internet, posters, mailings, promotional stands in the supermarket?

product

Products of the consumer goods industry can be durable goods or consumer goods.

The product, price and communication policy depends largely on the positioning strategy. A mass market strategy (price-volume strategy) tends to lead to the development of standard products and low prices. A preference strategy (image strategy) tends to lead to individual products and higher prices. Examples: Medion is a typical example of a mass market strategy. Large quantities, standard products, low prices and addressing the mass market using Aldi stores. BMW can be used as an example of a preference strategy. Customizable products, high prices and addressing specific market segments.

Many companies in the consumer goods industry try to combine a mass market strategy with individual products. Dell, for example, offers build-to-order PC systems.

literature

  • Hans Jung: General Business Administration . Oldenbourg Wissenschaftsverlag, 2006, ISBN 3-486-58049-3 , p. 1253 .
  • Sonja Bidmon: Customer satisfaction in capital goods marketing . DUV, 2004, ISBN 3-8244-8251-7 , pp. 352 .
  • Richard Geml, Hermann Lauer: Marketing and Sales Lexicon , 4th edition, Stuttgart 2008, ISBN 978-3-7910-2798-2