B2b Vs. B2c Marketing

B2B vs. B2C Marketing

Business-to-business (B2B) is a term used to describe transactions of goods or services between businesses as opposed to business-to-consumer (B2C) which describes activities of commercial organizations serving end customers with products and/or services. B2B and B2C marketing is different. There are profound differences that a business must remember when developing marketing activities.

Although the marketing programs are the same for each type of business (events, direct marketing, internet marketing, advertising, public relations, word of mouth, and alliances), how they are executed, what they say, and the outcome of the marketing activities differ (Murphy, 2007). The following table summarizes some of the differences between B2B marketing and B2C marketing.

B2B

Ð'* Relationship driven

Ð'* Maximize the value of the relationship

Ð'* Small, focused target market

Ð'* Multi-step buying process, longer sales cycle

Ð'* Brand identity created on personal relationship

Ð'* Educational and awareness building activities

Ð'* Rational buying decision based on business value

B2C

Ð'* Product driven

Ð'* Maximize the value of the transaction

Ð'* Large target market

Ð'* Single step buying process, shorter sales cycle

Ð'* Brand identity created through repetition and imagery

Ð'* Merchandising and point of purchase activities

Ð'* Emotional buying decision based on status, desire, or price

(Murphy, 2007)

As mentioned in the previous table B2B marketing is often relationship driven while B2C marketing is more product driven. A B2B company needs to focus on relationship building and communication. This requires a commitment of time and good customer service prior to ever making the first sale. In B2C, customers tend to place a great deal of emphasis on price comparisons. Customers go shopping online for the best possible price. B2C companies employ more merchandising activities like coupons, displays, store fonts, and offers to entice the target market to buy their product.

The market size also varies between B2B and B2C. Consumer markets are measured in the "millions" while only a few B2B firms have customer bases over "thousands." On the other hand, the dollar value of each B2B customer is significantly larger than in the consumer market (SMi, 2004). The buying process in a B2B market is also much longer and involves many people. It is not unusual to have a 6 Ð'- 9 month buying cycle involving 5 Ð'- 10 people as both decision makers and influencers.

The B2B buyer and B2C buyer differ so in turn so must the marketing. The business buyer is sophisticated, understands the product or services, and wants or needs to buy the products or services to help their company stay profitable, competitive, and successful. Therefore, the marketing must be more complex and requires research to ensure the necessary information is delivered to the buyer. The B2C buyer is usually looking for the best price and will research the competition prior to shopping. Another factor that comes in to play is if the buyer trusts the retail outlet. Many customers will buy from a trusted source. In that respect, B2C marketing needs to convince the person to buy and build trust and loyalty with their customers.

A strong brand is also important in B2B and B2C marketing but for different reasons. In B2B markets, brand will only help a business be considered, not necessarily chosen (Murphy, 2007). Business buyers are using more rational thought when selecting product or service for their company. They are motivated by saving money, increasing productivity or raising profitability.