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?
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
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.
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.
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.
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’
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
Executive Assistant and Content designer at T3 Direct LLC
I have tailored my skills in all verticals of marketing & business development. I have mastered a niche in Lead Generation, Digital Marketing, organize/develop projects, team development, data analysis, & excellent customer service.
About us and this blog
We are a digital marketing company with a focus on helping our customers achieve great results across several key areas.
T3 Direct is a company that produces corporate sales meetings, with a select specialty in some business to consumer aspects. Our mission is to connect people, places and ideas through sales meetings, events and interactive media. We help our clients reach their most important customers and prospects in the U.S. and Canada. We do this through face to face sales meetings as well as virtual options such as web conferences, SEO and SEM.