Generally, today in the world every individual is involved in a form of B2B and B2C market directly or indirectly. That consequently causes room for debate on B2B Vs B2C Marketing. Initially, B2B and B2C were popularized by the web for commerce and e-Business sales. B2B in fully is business to business and B2C as business to consumer. Respectively referring to business dealings between two businesses and business to consumer. Most B2B dealings are between manufacturers, wholesalers, and retailers but we’ll get to that later. So let’s do our best to decipher B2B Vs B2C Marketing.
What Is B2B?
Business-to-business, is a commercial transaction that is based on the exchange of products and services from business to business. In contrary to business to consumer. In the normal B2B supply chain companies purchase components and raw materials for their manufacturing processes. Furthermore, B2B products are majorly linked with services. In retrospect, B2B sales stakes are normally higher as wrong choices have larger consequences. B2B products are typically greater in complexity and also have a need for preventative maintenance. B2B largely deals with other businesses, not to the public! Additionally
What Is B2C?
Concurrently, business-to-consumer, is a commercial transaction in which businesses sell products or services to consumers. Of course this can be individuals shopping for clothes at the mall or subscribing to pay-per-view TV at home. Subsequently, the term B2C now popularly refers to the online selling of products and electronic sales. This has been benchmarked with ‘fast moving consumer goods’ which are sold quickly at relatively low cost. These are typically one-off purchases. It’s a super competitive industry and you have to sell your product to multiple people before the sale is made.
B2B Vs B2C Marketing Characteristics
Characteristics of B2B
In B2B, the sales volume is larger than business to consumer sales. Furthermore, the buying process of B2B products is riskier than B2C products purchase. Additionally, B2B companies behave differently when buying, the decision process that precedes a purchase is more tedious. A board/committee usually makes purchases, and decisions are specification-driven. In the same way, B2B companies generally avoid mass media when promoting their brand and they typically look for long term relations. The cash flow is also more predictable and consistent. They similarly have lower advertising and branding costs. Its technology and infrastructure is normally more expensive than B2C.
Characteristics of B2C
When it comes to B2C its less complicated, the technology is simple and cheap. They normally have a dedicated team focused on branding and marketing. B2C intends products and services directly for the end user. The purchase of B2C products is low riskier, more spontaneous and less calculative. Purchases are usually made by individuals with the possibility of negotiations, unlike B2B. B2B doesn’t leave much room for negotiations as prices are normally fixed unless on bulk purchases. Furthermore, B2C companies use more mass media when promoting their brand and have higher advertising and branding costs.
Consumer Purchasing Process
To give context it would be great to talk about their respective purchasing processes. Ironically, the B2B purchasing process is more complex than B2C. The time length is quite noticeable. B2B purchasing process takes a long time possibly over a month to a year. Nevertheless, in B2C, the purchasing process is way shorter and easier than B2B purchasing process. Additionally, e-Commerce tends to be less relevant in B2B as they majorly focus on lead generation.
B2B Vs B2C Marketing Decision Making
We have already hinted on B2B time in the previous paragraph which can indicate bureaucracy. This is forgiven since most B2B decision makers tend to be experts. B2B is very founded on authority and thought leadership. Hence the decision cycle can take from seconds to weeks for B2C. All while weeks to months on the contrary for B2B. Thus the sales cycles can be lengthy. Further, making the wrong choice in B2B purchases has greater consequences and impact as we implied early.
Transaction Process of B2B Vs B2C Marketing
Focusing on B2B, the transaction process requires additional information like a tax, customer code, product code, and merchant postal codes. B2C is quite simple in opposition, quite instant when a customer purchase is being made. In B2C transactions it is either cash, Paypal or credit/debit card. Additionally, pricing is quite consistent in B2C. While in B2B, price may vary by customer depending on the conditions or bulk. B2B customers can agree to place large orders, hire purchase, take on credit or negotiate special terms of pay. Furthermore, B2B Instant payment may not be required in further comparison, it can be over a specified period.
In B2C, goods and services are sold from the business to end consumer. Traders can purchase products at wholesale price and sell at a higher price to the final consumer. So the B2C vendors are typically middlemen if you may say. The end consumers get the finished product through retailers, wholesaler, distributor. Specifically, B2B businesses work as the core manufacturer of the product. So most end users get the finished product through agent, distributor etc.
B2B Vs B2C Buyers’ Behavior
In retrospect, B2B buyers are more rational while B2C buyers are more controversial, impulsive and brand recognition driven. B2B buyers are typically research driven and actually buy what they need. In comparison, B2C buyers they are opposite from B2B. They can be impulse spenders, more emotional too. However, in B2B there are shorter sales cycle and a single decision-making step. Thus why the B2C- Sales process is quick because there is normally only one key decision maker to convince. Furthermore, B2B markets give businesses a more flexible, open, consistent, reliable, highly available and scalable environment.
Finally, B2B marketing largely relies on the value of one business to another business with a limited market. as for B2C, consumers make momentary decisions and spend less time researching. Such factors will contribute to your final marketing strategy so it’s important to know all the variations on behavior. Above all remember all people are on each side of the purchasing equation. Your marketing plan has to consider these differences when developing the right types of activities intended for particular market. For more information or advice be sure to contact us at T3 Direct.