B2b Vs. B2c

Marketing: B2B vs. B2C

EBUS 400

FAC: John Harrison

September 18, 2006

Marketing: B2B vs. B2C

Introduction

Regardless if the sale is offline or online, any business that sells primarily to another business is considered business to business (B2B), and any business who sells primarily to the end customer is considered business to consumer (B2C). Marketing techniques differ between B2B and B2C. There are differences if a person is purchasing something for themselves or purchasing for a company. The emotional experience is different. B2B will depend on relationship building marketing efforts. Even though the marketing programs can remain the same (direct marketing, events, internet marketing, public relations, advertising, recommendations (word of mouth), other areas are different such as execution.

The initial marketing strategy is similar for B2B and B2C which is to identify the customer or target market--who is the customer and why do they need to hear the message. The strategy after this first step changes between the two.

The following table is a summary of the differences between B2B and B2C marketing.

B2B

* Relationship driven

* Value of the relationship is maximized

* Small target market

* More steps in buying process - longer sales cycle

* Personal relationship creates brand identify

* Educational and knowledge building activities

* Subjective/rational buying decision based on business value

B2C

* Product driven

* Value of transaction is maximized

* Large target market

* Single step purchase process, short sales cycle

* Imagery and repetition create brand identify

* Merchandising and point of purchase activities

* Emotional buying decision based on desire, cost or status

*

(Murphy, 2006)

B2B

Even though the ultimate goal of B2B marketing is to change prospects into customers, the process is longer and more involved. A B2B company needs to concentrate on relationship building and communication using marketing activities that produce leads that can be fostered during the sales cycle. B2B companies use marketing to provide knowledge to various players in the target audience because the decision to purchase is usually several steps involving more than one person. For example, the goal of an email advertising campaign for B2B is to drive potential customers to the web to learn about products and services. "The e-mail to a business must contain contact information for offline communications and the landing page should contain information on features, benefits, and possibly pricing" (Murphy, 2006). This marketing activity is usually the first step in an integrated touch campaign that may include direct mail, telemarketing, Web casts, and newsletters. There would also be follow-up by sales representatives who will discuss the businesses in more detail and move the prospect through the sales cycle. Content is crucial for B2B marketing and "white papers, newsletters, and coverage of products and services by the media helps companies educate their prospects" (Murphy).

B2C

"The ultimate goal of B2C marketing is to convert shoppers into buyers as aggressively and consistently as possible" (Murphy, 2006). B2C companies use marketing activities such as coupons, displays, store fronts (both brick and mortar and Internet) to entice the target market to buy. B2C marketing campaigns concentrate on the transaction, are shorter in duration and need to capture the customer's interest immediately.

These campaigns often offer special deals, discounts, or vouchers that can be used both online and in the store. For example, the goal of an email campaign for a B2C company is to get consumers to buy the product immediately. The email will take the consumer to a landing page on the web site that is designed to sell the product and make purchasing very easy by integrating the shopping cart and checkout page into the flow of the transaction. Any more than a couple of clicks and the customer is likely to abandon the shopping cart (Murphy, 2006).

One interesting aspect of B2C marketing, however, is that many