For those who are planning to be sellers or buyers online, it is very important to be able to see the difference between B2B and B2C marketing. A lot of people might consider them to be almost the same, but you must know how different they are from each other so that you can trade on the right platform and reap maximum profits.
If you are new to these terms, let’s understand the meaning and core of B2B and B2C to get a feel of them, which would make understanding the difference between B2B and B2C marketing easier.
B2B stands for Business to Business. Transactions between two businesses is referred as B2B. When you are involved in B2B marketing, it means that you own a business and you want to sell you products to some another business, rather than selling them to the end user.
B2C stands for Business to Consumer. Transactions between a business and the end user are referred to as B2C. For example, a corner store near your house is involved in B2C transactions. The virtual versions of these shops are the e-shopping websites which offer their products and services to individuals.
You can now clearly see that the target market of B2B and B2C marketing is different. Now we can understand some other basic differences between B2B and B2C marketing as far as the buying and selling processes are concerned.
Buying and Selling Process
The buying process in B2B marketing is for a long duration of time and many people from both the parties are involved in the whole process. In B2C marketing, the buying process is much faster.
The difference between B2B and B2C marketing, in the selling process is quite evident. B2B sales organisations are not only involved in selling but also need to engage themselves in high quality customer service and relationship management, with the business company they are selling their product to. B2C marketing strategies for selling lay focus on customer satisfaction, and try to offer best price deals.
The cost of a B2B sale is much higher than a B2C sale, since B2B sales are often done in bulk. There is not much difference between B2B and B2C expenses as far as advertising and marketing is concerned, and depends on the strategies adopted by the company. The profit also depends on the same.
The value of a customer forms an important point of difference between B2B and B2C marketing. Since B2B marketing involves building long term relationships, hence average value of a sale in B2B is much higher than B2C.
If you look closely you will realise that the difference between B2B and B2C marketing lies in the difference between emotional perspectives of the buyers. Consumers focus on comfort, quality and price while business buyers base their decisions on increasing the profitability of their company. Hence, marketing strategies should be designed according to the type of marketing you choose.