Business-to-business advertising consists of marketing efforts directed toward other businesses rather to individual consumers. Business-to-business advertising may involve the promotion of products such as copier machines, or services such as human resources consulting or logistics, that are primarily designed for businesses.
BREAKING DOWN 'Business-To-Business Advertising'
While business-to-consumer advertising focuses on reaching a household's decision-maker, business-to-business advertising focuses on reaching the employees of a business responsible for making capital decisions or who are in charge of purchasing. While consumers may be able to make rapid decisions on whether a product is of interest, businesses are often slower and have to go through a more complex process because the cost of products for a business can be high and may require approval from several levels of management.
A marketing strategy in which a company shows how its product or service is superior to that of its competitors by comparing the benefits and costs within the advertisement itself. A comparative advertising campaign may involve printing a side-by-side comparison of the features of a company's products next to those of its competitor.
BREAKING DOWN 'Comparative Advertising'
Comparative advertising is not used solely for the promotion of a product or service. It has become a common technique used in political advertisements, with one candidate listing how he or she would not have made the same specific decisions as the incumbent if elected. This type of advertising is popular with companies releasing new products, as the focus of the ad will be how the new product is better than products already on the market.
Money that a product manufacturer or service provider pays to a retailer to get the word out about a product. The company may establish requirements for the retailer to receive the allowance, such as getting the company's approval of the advertisement before it is displayed and providing proof that the advertisement was made.
By helping the retailer pay its advertising costs, the company's advertising allowance gives the retailer an incentive to carry that product.
BREAKING DOWN 'Advertising Allowance'
For example, let's say an educational toy store carries a board game that helps children learn about personal finance. The toy store publishes a quarterly catalog in which it advertises the board game by showing a photo of children playing the game and providing a one-paragraph description of the game. The board game manufacturer would typically pay an advertising allowance to the toy store to help offset the expense of marketing the board game in the catalog. These expenses might include a fraction of the catalog's printing and mailing costs or discount in the board game's wholesale cost.
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