Business Marketing in High Income and Low Income Households

Business Marketing in High Income and Low Income Households

Last updated on February 19th, 2021 at 04:23 am

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Business marketing is an advertising practice of businesses or people. It enables them to sell their products or services to businesses or other organizations that use them or resell them, apply them in their product or service, or simply use them as part of their promotional works. In short, it is a means to advertise and improve profit as well.

The evolution of online marketing has been a boon to business-to-business marketers, as it has allowed them access to countless markets previously inaccessible for them. This has opened up new and exciting opportunities for the kind of businesses that want to expand and deepen their business penetration in different markets. The most important benefit of business-to-business marketing is that it helps cut costs because it lets businesses focus on marketing to its own target markets, rather than wasting time and effort marketing to consumers in other markets. It also cuts down on travel expenses, because it lets marketers directly communicate with customers. 

An Interesting phenomenon happens in business-to-business markets: more consumers buy in bulk. Bulk buying, in other words, is when a certain number of consumers do business with a seller over a certain period of time, thus establishing a long-term relationship with that seller. This is very different from the quick, one-time consumer buying habit that prevails in product and service niches. For those buyers, their buying decisions are made as a result of a one-time deal, while for business-to-business marketers, this kind of purchasing habit is the norm.

Marketers who tap into business-to-business markets should therefore pay special attention to segments of consumers that are more likely to buy their products and services. They need to be aware of their target audiences. For instance, if the target market is executives (i.e. top managers and executives), then advertising in lifestyle or health magazines would probably not be the best choice. More likely, they should advertise in fashion magazines or women’s magazines.

However, targeting certain segments of consumers does not mean you should disregard other segments. In business-to-business markets, it is important to cater to the needs of both buyers and sellers. This way, both parties are satisfied. For example, manufacturers who sell consumer products (e.g. phones, shoes and clothes) need to take into account the needs of parents and grandparents, as well as the concerns of kids and teenagers. To effectively reach these segments, businesses can choose to advertise in education and finance magazines, as well as in consumer goods sections in local newspapers.

Business marketers must also pay close attention to the segment they are targeting. If their target markets are relatively high income households with relatively high disposable income, they should probably invest more in Internet advertising. On the other hand, if the segment they are targeting is relatively low-income groups that spend most of their money during leisure, they should probably choose to target their advertisements more on television. While Internet advertising costs relatively high, it is the most effective way to reach a large number of buyers at once.

Another useful strategy for targeting business-to-business markets is creating more personalized offers and sales copy. Personalization is especially important in b2b marketing since it allows buyers and sellers to add more value to the transactions. For instance, instead of offering the standard “price match” guarantee to buyers in consumer markets, a business owner could personalize the offer by including special offers and discounts. Similarly, instead of merely extending the service as is, a business could actually add value by providing personalized customer support or assistance, such as training or advice. This will increase the satisfaction rate for potential customers.

The last two segments discussed in this article, relatively high income and low-income households, represent the largest chunk of the American population, yet their needs differ from those of businesses in the business-to-business markets. In fact, businesses in these markets may not always serve these customers. It is also the case that these relatively high and low-income households do not have ready access to the Internet, even if they do have cable television. These groups would be a great opportunity for companies to enter their key accounts. Given that a majority of the population in the U.S. fall into one of these two income categories, there is no question that they have great potential for business expansion. The challenge is, how do you identify these groups to expand into profitable accounts?

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