B2b And B2c Marketing

B2B and B2C Marketing

Marketing in an electronic business environment is just as strategically important as marking for the brick and mortar business. Four essential categories of the marketing mix include product, price, promotion, and place. The business uses any combination of these elements to define the marketing strategy. The marketing strategy holds a vital role in the success or failure of the company. While there are many marketing similarities to the business-to-business (B2B) and business-to-consumer (B2C) environments, there are also significant differentiating marketing strategies between the two types of business that should not be ignored. This paper will examine the marketing differences on a B2B site when compared to a B2C site.

What is B2B and B2C Marketing

Business-to-business marketing strategies are based on building relationships while catering to other businesses and they feature a small target market segment. Business-to-consumer marketing strategies are product driven and generally feature a larger target market. B2B and B2C terms have “expanded their definitions to refer to any business who sells primarily to the end customer (B2C) or to other businesses (B2B), both online and offline” (Murphy, 2008, Ð'¶3). Examples of B2B sites include accurohealth.com, microsoft.com, grainger.com or pragmaticmarketing.com. Examples of B2C sites include walmart.com, amazon.com, bestbuy.com or homedepot.com.

B2B and B2C Marketing Insight

The first step in the marketing strategy is similar for both B2B and B2C relationships: identify the customer and understand why the product is important to them. The next steps in the marketing activities are quite different, however, and are summarized in Figure 1 below. The B2B buying process is traditionally a multi-step process and the sales cycle is much longer because of the many components involved with the products and the nature of the business relationship. This underscores the level of attention that must be placed on the product value and branding throughout the entire process, including cultivating and fostering cohesive relationships with the customer. B2C marketing is based on brand recognition and maximizes the value of the transaction. Product branding inspires the shopper to remain loyal with repeated business and where the consumer is willing to pay a little more for the brand.

B2B B2C

Relationship driven Product driven

Maximize the value of the relationship Maximize the value of the transaction

Small, focused target market Large target market

Multi-step buying process, longer sales cycle Single step buying process, shorter sales cycle

Brand identity created on personal relationship Brand identity created through repetition and imagery

Educational and awareness building activities Merchandising and point of purchase activities

Rational buying based on business value Emotional buying decision based on status, desire, or price

Figure 1 вЂ" B2B & B2C Marketing Differences. Source: D. Murphy, Vista Consulting (2008)

The B2B relationships traditionally work with other vendors to maximize profitability with the products that they are interested in purchasing, and the marketing materials must be created with this in mind. “The business buyer is sophisticated, understands your product or service better than you do, and wants or needs to buy products or services to help their company stay profitable, competitive, and successful” (Murphy, 2008, Ð'¶9). Customer service is also vital to the success of the B2B relationship and the branding that is associated with the product(s) or services because it adds to the element of trust. The B2C buyer also relies on the ability to trust a brand or vendor for purchasing decisions, which is based on quality, status, security, and price.

Choosing the Right Media

While the cost of advertising has become more competitive with the advancement in technologies, companies have several channels to use or marketing campaigns. B2B and B2C advertising must be targeted in such a way that will offer significant value proposition