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Problem

Describe the differences between consumer product strategy and business to business product strategy.

Step-by-step solution

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Step 1/2

The product strategy of any firm refers to the decision making about the offering, features and quality of products. The strategy of product involves creating a rational link between and among different product offerings.

Step 2/2

Although consumer product strategy and business to business product strategy are somewhat similar, they have certain important differences also. The differences between consumer product strategy and business product strategy are as follows:

1. Consumer product strategy gives emphasis to brand identity and to the appearances of the product. Business to business product strategy does not focuses on brand identity and product appearance only.

2. Business to business product strategy sells business products along with related services like training, maintenance, after sell services and installation. The business product is sold as a total package. In consumer product strategy, products are not sold as total product package. Consumer products can be sold without related services included, as total package.

3. The buyers of business tend to lower the emotional content in the decision of business-to-business product strategy. The business buyers are concerned with specific tangible utilities of product that is quantified during buying decision making. Consumer product includes emotional content in decision-making strategy. Consumer products are not concerned with particular tangible benefits of product measuring in decision making.

4. Designing the business-to-business product requires proper understanding of value generation activities of consumers. This enables the product to be positioned as vital contributor to value chain of customer.