Originally posted on November 6, 2020 @12:20 pm
If you are a business owner, you have probably heard of B2B or B2C marketing. While these terms might be familiar, many people do not know the definitions of these methods or the best ways to use these two types of marketing to help their bottom line. In order to successfully market your business, it is important that you know the difference between B2B and B2C marketing and how to use each type effectively.
What is B2B and B2C marketing? The chief difference between B2B and B2C is the clientele of the business who is implementing the marketing strategy. B2B, which stands for business-to-business, refers to businesses who market their products and services to other businesses. Instead of targeting individual consumers, businesses that use B2B sell to different companies. For instance, a business that specializes in designing security software might sell its software to health care organizations looking to protect their data. B2C, also known as business-to-consumer, is used by businesses who sell to individual buyers rather than other companies. This type of marketing is the most common, and it encompasses everything from car companies that sell vehicles to families to fast food restaurants that try to get consumers to buy their hamburgers. While both B2B and B2C marketing are similar, it is essential for you to understand the different roles each type can play when you are developing your marketing strategy.
Key differences between B2B and B2C marketing B2B and B2C marketing strategies differ with more than just their target audience. Understanding the different factors that go into each strategy will help you make better marketing decisions for your company. Here are a few of the key differences between B2B and B2C marketing:
Stakeholders When individual buyers want to purchase a product, they usually are able to make the decision by themselves or with the input of their family. This means that B2C marketers have to advertise in a way that will attract a single buyer and encourage him or her to purchase their goods and services. Whereas individual consumers are typically able to make quick purchasing decisions, there is a much more complicated process for selling products to other businesses. Often times there are several people or even departments that have a say in the company’s business decisions. This means that B2B marketers have to focus on persuading all of the major stakeholders to purchase their products.
Value Since consumers typically only buy products for themselves or their families, they are able to make decisions based on price or entertainment value. For example, when an individual person buys a new pair of headphones, the only thing he needs to consider is his own enjoyment. Brands with a B2C focus only need to promote individual and emotional value in their advertisements. In order to market to other businesses, B2B marketers have to show all of the key stakeholders how their product or service will add value to the entire company. Businesses want to know how a contract will have long-term benefits that will help them address their financial goals. Unlike businesses who sell to consumers, B2B marketers need to demonstrate the return on investment and growth potential to their clients.
Client relationships Most individual consumers are not interested in developing a relationship with brands, even if they consistently buy their products. This means that B2C brands should prioritize offering a great product and not necessarily connecting with each of their consumers. This is the opposite for companies with a B2B focus. Because organizations often buy products or services on a larger scale, B2B businesses know that losing a client can be detrimental to their bottom line. These clients typically have long contracts, so they want to establish a positive relationship with the businesses who sell to them.
What this means for your business Understanding B2B vs B2C will help you determine what your business should prioritize when marketing. Depending on whether your business sells to consumers or to other businesses, your approach will need to be different in order to meet the needs of your clients. Consider the differences between these two types of marketing and adjust your strategy so that you will see positive results.
If you need help implementing a marketing strategy that works best for your company, contact Endless Revenue Marketing.