What Is the Difference Between B2B and B2C Marketing.
If you are new in the world of marketing, you could probably be wondering “What do B2B and B2C even mean? Believe it; these two terms are only common to marketers.
To get you started, let’s define them.B2B (Business-to-Business) is the kind of marketing in which one business promotes its services to another business. It is done with consideration of the needs and interests of the customer. A perfect example is a company that supplies foodstuffs to a restaurant. The company is selling its goods to another business (the restaurant), which in turn sells the food to the final customers. The company’s process of promoting and selling its services to the restaurant is known as B2B marketing. Else ways, B2C (Business-to-Consumer) marketing is the process of promoting and selling goods and services to the final consumer. It is dedicated to the needs, interests, and challenges of the final consumer. So far, we can see that B2B and B2C are not very far from each other. The final consumer is always the target in both cases. For example, a company must supply Chinese foodstuffs to a Chinese restaurant because the clients want Chinese food. In some cases, B2B marketing can become B2C marketing and vice versa.
Now, what draws the line between B2B and B2C marketing?
Here are the differences between the two.
1. Decision Making Process
For any B2B transaction to be made, a decision has to be made through a long and hefty process. Two businesses have to take into perspective all the factors affecting both of them. The selling business must convince the buying business that they need their products.
Also, the buyer must weigh between buying and not buying. Both businesses aim at maximizing profit. The process of trying to determine the feasibility of the purchase may take a long time before a decision is made. On the other hand, the B2C decision-making process is straight to the point. Only one or a few stakeholders are involved to decide on purchasing a product or service.
2. Mode of Communication
B2B marketing does not involve sweet-talking and emotional conviction of purchase. It is about professionalism and formal business. The two businesses usually work towards building a long term relationship if the Return on Investment (ROI) is acceptable.
B2C customers can be convinced based on just talking and establishing a rapport. It mostly involves emotions and interests. However, it is short term. A customer can keep buying from the same seller. However, no signed agreement ties them together.
3. Motive of Purchase
Why would a web development company sell telemedicine software to a hospital? The purpose is purely for increasing efficiency in terms of service delivery to the patients. B2B businesses provide their services for expertise and efficiency purposes. Contrarily, most B2C buyers only purchase goods and services for entertainment and basic use. A consumer can buy gaming software from the same web development company for fun purposes.
4. After-Sale Maintenance
In most B2C deals, the engagement ends right after the transaction and installation. The buyer and the seller may never meet again. However, B2B businesses must follow up on their products and ensure efficiency to maintain a perfect relationship with the client business. An internet provider must keep monitoring the strength of their internet all the time to ensure that the client stays satisfied. This also applies to products like software. In case of a breakdown, the seller must fix it depending on the agreement between the two parties.
5. Period of Engagement
In most cases, B2B businesses sign contracts with their client business to provide their services for a certain period. This period can be a minimum of 6 months. Unlike B2C marketing, B2B doesn’t keep changing their sellers all the time. When the services are satisfactory, the contracts can be renewed once the period elapses.B2C customers have no long-term relationship with their sellers. Even when it exists, it’s mostly informal and not recorded anywhere.
Business-to Business and Business-to-Client marketing are different although they have numerous similarities. As a marketer, you should understand them to make sure you provide quality services. Being on your company’s sales team means you need to know how to represent your company in front of other businesses and even final consumers. Do you need to market your business? BWD Advertising is an affiliate marketing company that displays the power of your business to your potential clients.