Differences between B2B

Marketing And B2C

Marketing
PRESENTED BY-
SOHAM MAJUMDER
ROLL NO-1981010
 What is B2B Marketing

• B2B marketing or business-to-business marketing is a process that involves selling products and services of
one company to another. Therefore, B2B marketing targets companies or businesses. B2B marketing is generally
used by businesses that manufacture steel, fabric, cement, furniture, or plastic or provide various services for
other companies – for example, search engine optimization, software solutions, office supplies, or project
management.

• In B2B marketing, buyers’ purchase decision is based on logic, with an eye to the return on investment (ROI).
Therefore, marketers have to inform the potential buyers about the product or services, its features, and its
benefits.
 What is B2C Marketing

• B2C stands for business-to-consumer marketing. The term B2C marketing refers to strategies and tactics
businesses use to promote their products and services to individual people. In simple words, B2C marketing
targets individual consumers as their customers. The products that fall under B2C marketing are usually things
people use in their everyday lives. For example, a cosmetic company marketing their beauty products, fashion
store marketing their garments, healthcare practices advertising their services, movie-streaming platforms like
Netflix adverting their services, etc. Companies like real estate agencies, car dealerships, educational institutes
also use B2C marketing to entice people to purchase their products and services.

• In business-to-consumer marketing, marketers always have to stay in touch with current trends and have to be
knowledgeable with customer behaviour predictions. This is because market changes happen overnight, and
trends can change. It’s also important to monitor the marketing tricks their competitor businesses use. When
compared to buyers, i.e., businesses, in B2B marketing, buyers in B2C marketing behave differently. Individual
customers typically seek out goods and services based on their immediate needs. In addition, they make
purchases more quickly, with less diligence. In B2C marketing, marketers generally try to trigger the emotional
reactions of consumers.
B2B Marketing Vs B2C Marketing
 Key differences between B2B and B2C
• 1. B2B Has a Longer Buying Cycle
• Businesses buy products and services to achieve the long-term goal of making money. Consequently, a
business purchaser will spend more time evaluating products before buying. In contrast, a consumer will decide
faster after only a limited amount of evaluation and comparison for most purchases. As a result, it will take
longer to close a B2B sale, and the prospect will need to be nurtured every step of the way towards that
decision.
• 2. More Stakeholders in a B2B Purchase
• Consumers buy products for themselves. The decision to purchase is entirely their own or, for significant
purchases, the decision might be shared with a partner. However, when a business makes a purchase, there will
be multiple stakeholders. A business acquisition may require the approval of a chain of command. There may
also be other stakeholders, such as the end-users of the product or service. All the stakeholders in a B2B
buying decision will need to be convinced for a purchase to happen. So, marketing and sales efforts need to
cater to multiple decision-makers.
• 3. Greater Emphasis on Long-Term Relationships in B2B
• Businesses are more likely to look for long-term relationships with suppliers because they want stability and
reliability in the supply chain. As a result, a business buyer will be more interested in the financial stability of a
supplier than a consumer. Of course. Businesses do make one-off purchases, and consumers sign long-term
contracts. However, company size and the ability to provide a long-term solution will be more of a factor in B2B
buying decisions than consumer sales.
• 7. B2C Sales Are More Emotional
• Business purchases are practical, while consumers’ buying decisions may be driven by emotion. So, impulse
buying is unlikely in a B2B sale. The sales cycle is longer, and tactics like the fear of missing will not be effective.
Businesses are not influenced by peer pressure in the same ways as consumers are. Therefore, B2B marketing
must appeal to the mind more than the heart.
• 8. B2C Advertising Needs to Be Attention-Grabbing
• Business-to-business companies must compete for customers as much as B2C businesses. However, business
buyers are more likely to be familiar with the players in the marketplace and research alternative suppliers.
Furthermore, companies only investigate potential suppliers when they need a product or service. So, attention-
grabbing advertising is unlikely to increase leads significantly. Consumers, however, will buy because they see an
advertisement. B2C advertisers are also competing for attention against other, non-related products.
Consequently, advertising must stand out to gain the attention of potential customers.
• 9. Broader Target Audience for B2C Marketing
• There are niche consumer products with specific customer bases, but most B2C products appeal to a broad range
of consumers. Consequently, B2C marketing is often targeted at platforms with broad reaches, such as social
media, television, and billboard advertising. There are far fewer businesses than individual consumers, and B2B
products can be specific to industry sectors. So, B2B marketing and advertising will be more cost-effective if
targeted at specific niche markets, for example, trade and professional publications and shows and LinkedIn.
• 10. B2B Average Order Value Higher
• Longer sales cycles, narrow target markets, and negotiable prices might make B2B sales appear unattractive.
However, the average total value of a B2B sales order is likely to be many times that of a consumer order. So,
while the marketing costs may be higher and the gross margins lower, the average order value will be significantly
higher, justifying the higher customer acquisition cost.
• 4. Price is Negotiable in B2B Sales
• The price of consumer products tends to be non-negotiable. There are, of course, exceptions to this. For example, a
consumer might negotiate the price of a service, such as landscaping or home renovations. Still, consumers expect
to pay the advertised price for most products. Business purchases, however, tend to be high-volume and repeating,
so B2B buyers will expect to negotiate on price. Consequently, companies selling to businesses will need more
flexibility in their pricing. Indeed, unlike consumer advertising, the price may not appear at all on B2B marketing
material.
• 5. ROI is Crucial for Businesses
• As mentioned in the introduction, businesses look for a return on investment when making purchases. So, benefits
such as efficiency, cost savings, and added value are more critical than they might be in a consumer sale. Consumers
might be looking for entertainment, life enrichment, or short-term satisfaction. Businesses, however, are seeking an
improvement to the bottom line. Indeed, even purchasing something like a water cooler has an ROI in employee
productivity. Consequently, B2B marketing needs to be more ROI-focused than emotional.
• 6. Jargon is Best Avoided in B2C Sales
• It is best to keep the sales message simple in B2C marketing. For example, focus on the benefits and avoid using
industry jargon. B2B buyers, on the other hand, will be more conversant with industry jargon and, arguably, better
informed. So, product descriptions and marketing literature tend to be more detailed and technical. As with all the
differences mentioned here, there are exceptions. For example, a consumer purchasing a personal computer will be
familiar with computer hardware jargon and use technical specifications in product comparisons.
THANK YOU