Guest post by Robin Mckenzie
Before I explain the key differences between B2B Marketing and B2C Marketing, let me first explain what these two terms mean.
B2B Marketing is business to business marketing while B2C Marketing is business to consumer marketing.
In both cases, a product or a service is being sold, but the difference is in the way you market it.
The purchase motivation differs as well.
Both the consumer and the business have different needs when it comes to purchasing a product. Bear in mind that a business will purchase based on logic, a customer purchases on emotion.
The main differences between B2B Marketing and B2C Marketing are:
1. B2C vs. B2B Markets – Size:
More often than not, B2B markets are small markets. The sales prospects of such B2B markets could be as much as 1000 prospects. On the other hand, B2C markets are much larger markets with sales prospects in the range of hundreds to thousands, and even to millions. The marketing implication of this is that the B2B sales will be less and the focus will be on quality prospects instead of quantity. B2C produces mass prospects but quality is compromised in this case.
2. Marketing strategies:
B2C marketing strategies are consumer oriented. Emphasis is more on the features and benefits of the services or products that are being marketing. Whereas, in B2B the marketing strategies focus on detailed logic and profit. Another difference in the marketing strategies of both B2B and B2C is that B2C strategies are based on the emotional decisions of the consumers.
The consumers’ expectations of a product are taken into consideration when the marketing strategy is being thought of. Logic and knowledge form the base of B2B marketing strategies. No personal emotion is involved between the buyer and seller in B2B marketing.
3. Brand Value:
The way brand identity/value is built in these two markets is another key difference between the two. In B2C markets, brand identity is built on the basis of advertising. Brand identity is built on personal relations, reputation and selling (consultative) when it comes to B2B markets.
Having said that, the Internet is now helping both B2B and B2C markets build up brand value. Social media plays an important role in building brand value for both these markets today.
4. Usefulness of product:
In B2C marketing, the product is mainly bought by household consumers. Therefore, the main focus of marketing in B2C is how the product will benefit the customer and how it will be of use to them. For B2B marketing, the focus is on how the product will be beneficial to a business in terms of saving time, money and resources of the said business.
5. Customer Value:
The lifetime and value of a customer for B2B is high due to the increase in sales cost and the chance of repeating sales to the very same customer. However, the life time and value of a customer in B2C is comparatively lower because repeat sales are lesser and the cost of the individual sale is lower as well.
It is important to understand and take note of the above mentioned differences. They will help you to formulate better and more effective marketing strategies in either B2B or B2C markets.
About the author:
This guest post has been brought to you by Robin Mckenzie of Centurylink, a site that offers savings and current information on consumers’ broadband internet and cable.