Consumer impulse buys
In consumer business it is almost all about perception of products and brands fueled by marketing in order to be able to sell at higher prices. People buy products of brand names without much rational or reasoning. Many purchases are actually impulse buys and with large ticket buys (like cars) the options are certainly driven by other drivers than real needs.
However the purchase process in Business-To-Business much more rational and reasoning is involved for several reasons:
- Several people from different departments are involved in the purchase process
- A budget has been set previously leaving less room for subjective purchases.
- A purchase decision can weigh on the career of the decision taker (positively or negatively)
- Fear for the risk related to the purchase decision
Marketing influences Sales Price
Still the sales price is influenced by the marketing for the product or for the company brand. Thus even if there are almost two identical products or solutions, the company that influenced the perception with better marketing for the brand or product is likely to be able to sell at higher prices than the competitors.
Through adequate marketing over several years a brand name can become more trusted and obtain the perception of being reliable which allows this company to sell at a higher price as the marketing has created confidence which takes away a part of the decision fear.
It is unlikely people will buy from unknown or lesser known companies due to the fear of risks involved in their buying decision. Instead they will have the tendency to buy from brands that have build the perception of a quality and trusted company.
Hence Marketing does influence the sales price in B2B.
How much does your marketing influence your sales price ?