Today we can see that marketing is growing not only in towns but also in villages too. The reason here is that everyone is being educated appropriately and the knowledge is being shared from several aspects. In clear words what people usually think about marketing is simply interacting with the people and making a sale. But marketing includes a wide assortment of activities with the final goal of huge sales.
Marketing involves two types i.e. B2B and B2C. These are the two business marketing models where sales hold to be the final result, however, this does not mean that these two business models are similar. There are surely some substantial differences and there’s also plenty of overlap between the two.
B2B stands for Business to Business, as the name implies, it is a kind of business transaction where the selling and buying of merchandise are performed between two business organizations or houses, such as one entity providing material or services to a different entity for production.
On the other hand, B2C which is Business-to-consumer marketing refers to the strategies and tactics in which an organization promotes its products and services to different people: planning, creating, advertising, and selling products for consumers to use in their daily lives.
These two sorts of businesses are growing up parallel to each other and today they are both in the industry: B2B and B2C business. However, what is particularly essential to understand is that marketing to the business world is different from marketing to customers.
And it’s very important to understand the differences between B2B and B2C marketing. Both B2B marketing and B2C marketing have distinct plans and strategies that work for them. And it’s important to know when can you unite those strategies and when you should not.
Differences Between B2B and B2C Marketing
Although B2B and B2C marketing campaigns share some same technical best practices, such as utilizing retargeting to overcome abandoned carts or negative keywords to refine ad placements. While these practices remain the same, but, various crucial differences separate these two marketing campaigns. Knowing these differences can enhance your campaigns significantly, therefore let us have a close look at them.
1) Target Audience
When it comes to target customers, the differences between B2C and B2B marketing are more noticeable. The audiences of B2C are individual customers who purchase products and services for personal objectives. These customers are people that categorize into different segments. These end customers do not use purchased items for any additional productions for selling purposes later on.
The audience of B2B is more conservative and notable than B2C’s counterparts. Firms of every size, including SMEs (small and medium enterprises), or companies purchase products, not for immediate usage. Rather, they utilize for business or internal purposes. B2B usually has higher-value consumers than B2C because its products and services are more extensive and complex.
B2C marketers sell directly to customers, not retailers or some other company within the supply chain. B2B marketers, on the other hand, follow key decision-makers in an organization. They don’t have to bother about anyone in the organization or even the end-user.
2) Differences in Marketing Strategies
B2B and B2C marketing may follow the same methods of publicity, advertising, promotions, and marketing channels. But there are differences in marketing tactics and the way information is delivered to customers.
In B2B marketing, your main focus is on the logic of the product including its features. There is very little to no personal emotion associated with the purchasing decision, so you need to focus on knowing your customers and how they work within the confines of their companies’ plans and procedures.
What’s their role and what’s important to them? B2B consumers are more conscious, organized, and logical than B2C consumers. When buying a product, B2B consumers always examine thoroughly a specific return on investment (ROI). Hence, it is essential to give them rational messages, provide them with reliable information, and eventually practical B2B solutions.
In B2C, when you are marketing to a customer, your main focus is on the benefits of the product. The decision of the customer here is more emotional. Customers too are different, they demand a variety of distribution channels for their convenience and help.
Customers are less prone to be interested in a long marketing message and want you to get directly to the point. Here in B2C, it is enough to advertise in general media such as radio, television, or online magazine. But, for B2B, it may not serve your purpose as business consumers use the different avenues that marketing needs to follow.
3) Return on Investment
Not like B2C buyers, B2B buyers do not purchase goods to meet their requirements. They purchase software, technology, and services to optimize their manufacturing and operation. This decreases cost, enhances customer experience, and finally increases revenue. Hence, you can say that a B2B transaction is an investment towards future productivity and profitability.
A B2B transaction is an investment in future profitability, timesaving, cost reduction, productivity, sales, or consumer satisfaction. Unlike customers, businesses never purchase technology just to look great, for fun, or the user experience.
4) Decision-Making Process
During the decision-making process of B2B, marketers need to deal with different target groups/personas inside a particular enterprise. There is open communication between businesses to decide whether or not it is a reliable fit for both parties. B2B business operators need to keep in mind that there will be several people included in the purchasing process, so the process is more complex than that of B2C.
Depending on the kind of purchases, the ultimate purchasing is controlled by a decision-making group that can incorporate members from operational, financial, business, and technical departments. In B2C, the decision-making process is extremely simpler. It is a personal purchase and depends essentially on the emotion of the buyers.
5) Content Marketing
When we talk about B2C customers, you need to understand that they love content. But, they need something that influences and excites them. They require content that “talks” their language, and not certainly something to do with the product. B2B customers or you can say decision-makers on the other hand expect to be accurately treated and well catered for. They need to be trained so that they can obtain excellent decisions on part of their organizations, which is where content marketing gets into the picture.
6) Marketing Costs
B2C customers typically make one-person decisions which helps save marketers a lot of money and time. But B2B marketing is different and it is usually a lengthy process involving a long series of commands. After all, the decision-maker is usually not a single person, which indicates that B2B marketers need to invest more money. B2B product-focused companies generally spend 10.4% of running costs on marketing. For more service-oriented B2B firms, this percentage grows to about 12.6%.
B2B and B2C marketing have various similarities, but there are also several differences between the two. This B2B marketing sequence is long-drawn and usually requires a longer chain of command than the B2C buying process. It is more difficult, expensive, and takes longer to convert a B2B customer.
These two business models comprise the entire business process when combined. B2B is mainly for the entities which sell their products to other business entities. If we speak about B2C, it is for the entities which are engaged in the purchase of their products to the final customer that is not going to resell them. Understanding all these differences between the two will make your campaigns more successful, getting you better results in the end.