How is B2B and B2C Marketing Different?
When it comes to promotional markets, there are two main types; Business to Business Marketing (B2B) and Business to Consumer Marketing (B2C). While these two types of markets may sound very similar, they are, in fact, very different from one another. For marketers to create a marketing strategy for a business, whether it be B2B or B2C, it is highly critical that they understand the similarities and differences between the two to be successful. This is because marketers must shape their approach based on the market they serve to maximize their effectiveness.
Below you will find a description of B2B and B2C marketing
Business to Business Marketing (B2B)
Business to business marketing focuses on marketing products directly to businesses or other organizations with logical process-driven purchasing decisions at the core of its practice. When goods or services are sold for any use other than personal consumption, it is categorized as B2B. Marketers need to focus on the logic behind the product and the product features when marketing to businesses since businesses make their purchase decisions based on open communication between businesses to determine if the arrangement will be beneficial for both parties. This is because B2B uses their purchased products primarily to produce goods, resale to other consumers, or facilitate their business operations.
Business to Consumer Marketing (B2C)
Business-to-consumer marketing focuses on marketing and selling products and/or services to individuals for personal use. When marketing to consumers, marketers should focus on communicating how the product being sold solves their problem, wants, or needs. Consumers make their purchasing decisions based on emotions and funnel through the sales/conversion funnel accordingly. If a marketer can communicate a message that identifies a consumer’s needs, the market’s message will successfully appeal to the consumer.
Below you will find the three major differences between Marketing to Businesses (B2B) and Marketing to Consumers (B2C) that every marketer should know.
Three Major Differences
1. Fewer Customers
The first of three significant differences in these markets is, B2B markets have fewer customers than B2C. When a business is buying for use within the company, fewer consumers seek to make larger-scale purchases. Similarly, when a business is selling to a consumer, more consumers seek to make a purchase, but the company sells less volume per consumer.
2. Derivative Demand
The second difference is found in the derivative demand. B2B marketing is much more complex than B2C because there are multiple decision-makers in the transaction process. Whereas B2C only has the consumer making the transaction and, therefore, the purchase decision. B2B sellers must monitor the conditions of the economy to anticipate purchase patterns.
3. Complex Transactions
Finally, we have the third significant difference, complexity in transactions. Generally, in B2B, the more expensive a product is, the longer it takes for a seller to make a sale, and the more complicated it is. This is because expensive B2B transaction requires more decision-makers to take part in the transaction whereas B2C can make spur of the moment purchases. This means that marketers should tailor their message to appeal to the personality and emotions of B2C consumers and make their message to B2B clients more generic and matter of fact.
In conclusion, marketers need to understand B2B, and B2C marketing differences to best serve their clients. It is critical to understand the three key differences to take advantage of marketing tactics that may only apply to either B2B or B2C businesses.