Marketing Differences B2b Vs B2c

Marketing Differences Paper: B2b vs. B2c

In two distinct e-commerce business types, Business-to-business (B2B) and Business-to-Consumer (B2C), there are many differences in the way they operate. Specifically in marketing, differences include how the marketing is driven and the values of the strategies, the size of the target market and length of the sales cycle, and even the buying patterns of the target consumers. Each of these differences will be better defined and explained in the following paragraphs.

Drive and Strategy Values

Business-to-Business

Business-to-business companies are relationship driven. They are offering another company a product or service that the company should use to their benefit, and in order to sell this product or service, they have to build a strong, working relationship between the two businesses. B2B companies have to maximize the values of the marketing strategy: relationships and trust. In order to be successful, these two businesses must be able to trust each other, work together, and form a working relationship that will benefit both businesses in the end.

Business-to-Consumer

In contrast, B2C companies are product driven. These products have to be highly in demand to the consumer market, and in order to be successful these companies have to sell the product or service in high volumes to make a profit. Therefore, the relationship between the company and the consumer is not nearly as maintained as that of a B2B company. The value of this marketing strategy is the transaction- as many as possible to cover the costs and make a profit. In a similar fashion, however, there is also the value of trust, as a consumer that trusts the company or the brand will often assist the company in increasing transactions (Murphy, 2008).

Target Market and Sales Cycle

Business-to-Business

In business-to-business companies, the company is seeking out a smaller, focused target market. B2B companies usually offer something to other businesses that help another company to increase productivity or offer another benefit that the company will need. Therefore, the company must target a smaller group of companies that will have a demand for this product. The target market can increase after some level of success has been achieved. However, because of the focus on relationships throughout the marketing strategy, smaller target markets are easier to approach and to continue building and nurturing that business relationship.

Also due to the value of the business relationship, the transaction cycle is often longer than that of a B2C company. Communication between the two businesses will start slowly, building up trust and demand for the product or service on offer. Detailed information will be provided throughout the sales cycle, to ensure that before the purchase has been finalized, the consumer business will know exactly what the product or service will do for their company (MarketingProfs, 2004).

Business-to-Consumer

In order to succeed in a business-to-consumer e-commerce, the company has to market to a much larger, less focused target market. The product or service has to serve a function that a multitude of potential consumers will need, and it should be something that draws the consumers to the product through a more mass-marketing concept than a direct and personal method. Having a product-driven strategy, and putting more value on the transaction than the relationship requires the B2C companies to find a way to reach a large market that will work to their advantage.

Also, because B2B companies have to value the transactions more than the relationships to be successful, the transaction and the sales cycle has to be quick and easy for a consumer to participate in. The consumer must have as much information available as possible, so that they are able to make the decision on their own without a lot of guidance (Murphy, 2008). The purchase should be a one-step process, such as simply filling out a form, or the “shopping cart” features that many e-commerce sites offer. Without an easy transaction