Relationship Driven
B2B vs. B2C Marketing
Business-to-business (B2B) is a term used to describe transactions of goods or services between businesses as opposed to business-to-consumer (B2C) which describes activities of commercial organizations serving end customers with products and/or services. B2B and B2C marketing is different. There are profound differences that a business must remember when developing marketing activities.
Although the marketing programs are the same for each type of business (events, direct marketing, internet marketing, advertising, public relations, word of mouth, and alliances), how they are executed, what they say, and the outcome of the marketing activities differ (Murphy, 2007). The following table summarizes some of the differences between B2B marketing and B2C marketing.
B2B
Relationship driven
Maximize the value of the relationship
Small, focused target market
Multi-step buying process, longer sales cycle
Brand identity created on personal relationship
Educational and awareness building activities
Rational buying decision based on business value
B2C
Product driven
Maximize the value of the transaction
Large target market
Single step buying process, shorter sales cycle
Brand identity created through repetition and imagery
Merchandising and point of purchase activities
Emotional buying decision based on status, desire, or price (Murphy, 2007) As mentioned in the previous table B2B marketing is often relationship driven while B2C marketing is more product driven. A B2B company needs to focus on relationship building and communication. This requires a commitment of time and good customer service prior to ever making the first sale. In B2C, customers tend to place a great deal of emphasis on price comparisons. Customers go shopping online for the best possible price. B2C companies employ more merchandising activities like coupons, displays, store fonts, and offers to entice the target market
Business-to-business (B2B) is a term used to describe transactions of goods or services between businesses as opposed to business-to-consumer (B2C) which describes activities of commercial organizations serving end customers with products and/or services. B2B and B2C marketing is different. There are profound differences that a business must remember when developing marketing activities.
Although the marketing programs are the same for each type of business (events, direct marketing, internet marketing, advertising, public relations, word of mouth, and alliances), how they are executed, what they say, and the outcome of the marketing activities differ (Murphy, 2007). The following table summarizes some of the differences between B2B marketing and B2C marketing.
B2B
Relationship driven
Maximize the value of the relationship
Small, focused target market
Multi-step buying process, longer sales cycle
Brand identity created on personal relationship
Educational and awareness building activities
Rational buying decision based on business value
B2C
Product driven
Maximize the value of the transaction
Large target market
Single step buying process, shorter sales cycle
Brand identity created through repetition and imagery
Merchandising and point of purchase activities
Emotional buying decision based on status, desire, or price (Murphy, 2007) As mentioned in the previous table B2B marketing is often relationship driven while B2C marketing is more product driven. A B2B company needs to focus on relationship building and communication. This requires a commitment of time and good customer service prior to ever making the first sale. In B2C, customers tend to place a great deal of emphasis on price comparisons. Customers go shopping online for the best possible price. B2C companies employ more merchandising activities like coupons, displays, store fonts, and offers to entice the target market
References: Murphy, D. (2007). Marketing for B2B vs. B2C- similar but different. Retrieved August 29, 2007 from http://www.vista-consulting.com/marketing-articles/b2b-b2c- marketing.htm SMi (2004). 7 key differences between B2B and B2C database direct marketing. Retrieved August 29, 2007 from http://seminars.b2bmarketing.com/resource papers/7_key_differences_between.pdf Warholic, J. (2007). Internet marketing B2B vs. B2C comparisons for the twenty-first q century. Retrieved August 29, 2007 from http://pwebs.net/marketing/articles /marketing-b2b-b2c.htm