Perplexing the b2b and b2c Marketing
The terms B2B and B2C were developed to denote target market. The markets decide your marketing programs. The B2B sales market heavily relies on relationship selling. The sales are obtained in a longer sales cycle than B2C sales. The differences in the characteristics between B2B sales and B2C sales and their associated marketing schemes are plentiful.
B2B sales are made based on your relationship with the purchaser. The emotional part of the sale is based on the interpersonal relationship in a B2B sales environment whereas the emotional part of the sale in a B2C sale is between the customer and the product.
In B2C sales, your market is the entire sales market of consumers. There is very little discrimination or qualification of potential customers. If the product appeals to them, then they are a customer to which you may sell your product.
Consumer markets are measured in the “millions” while only a few B2B firms have customer bases over “thousands”. On the other hand, the dollar value of each B2B customer is significantly larger than in the consumer market.
In the business market the buying process is much longer and involves many people. It’s not unusual to have a 6-9 month buying cycle involving 5-10 people as both decision makers and influencers.
Vastly different than in consumer markets, B2B sales organizations are characterized by well-paid field sales people, distributors, and business partners or independent representatives who are not only engaged in the selling but in the fulfillment of the product or services.
As a result of the selling process, the cost of a B2B sale is much higher. Average sales call costs now average of $350-400. A complex solution may require 8-10 calls to close a sale plus the advertising and marketing expense to generate inquiries and qualify leads.
Balancing out the cost of B2B selling is the value of the sale.
The initial transaction value is measured in hundreds or thousands of dollars and the likelihood of on-going sales is quite high. As a result, the lifetime value of a B2B customer can span many years and add up to hundreds of thousands if not millions of dollars.
Your business-to-business market is more interested in the logic behind your product. They will want to hear more about the features and how it will help them in saving time, money or resources.
Your business-to-consumer market purchases more on emotion. They are more interested in the benefit of the product. They will want to hear more about how their product or service helps them and what benefits it brings to them personally.
Much is actually made of what a B2B and what a B2C are. A B2B, by basic or general definition, is the Business to Business dealings which result in business. A B2C, on the other hand, again by the same basic or general definition, is the Business to Consumer which results in a transaction and business.
It is said that a business dealing with the supplying of raw materials to another business that utilizes the raw material to produce goods can be called B2B transactions. The B2B transaction doesn’t involve any transaction from the direct customer and hence, no direct persuasion of the consumers. A B2B business happens only behind the scenes like the involvement of a technical crew in a film.
This turns out to be a good example that watching a film or releasing them on theaters is a Business to Consumer transaction and making the film means a Business to Business proposition as it involves the necessity of various other services and products and involves other businesses.
When a B2B Marketing Agency acts on behalf of a manufacturer to sell a product the B2B agency doesn’t in fact sell the product to make profit. It is the manufacturer who sells the product. B2B Agencies only help market them and they are dependent only upon the manufacturer for their profits. This way, the term or tag is justified for a marketing agency!
The terms B2B and B2C were developed to denote target market. The markets decide your marketing programs. The B2B sales market heavily relies on relationship selling. The sales are obtained in a longer sales cycle than B2C sales. The differences in the characteristics between B2B sales and B2C sales and their associated marketing schemes are plentiful.
B2B sales are made based on your relationship with the purchaser. The emotional part of the sale is based on the interpersonal relationship in a B2B sales environment whereas the emotional part of the sale in a B2C sale is between the customer and the product.
In B2C sales, your market is the entire sales market of consumers. There is very little discrimination or qualification of potential customers. If the product appeals to them, then they are a customer to which you may sell your product.
Consumer markets are measured in the “millions” while only a few B2B firms have customer bases over “thousands”. On the other hand, the dollar value of each B2B customer is significantly larger than in the consumer market.
In the business market the buying process is much longer and involves many people. It’s not unusual to have a 6-9 month buying cycle involving 5-10 people as both decision makers and influencers.
Vastly different than in consumer markets, B2B sales organizations are characterized by well-paid field sales people, distributors, and business partners or independent representatives who are not only engaged in the selling but in the fulfillment of the product or services.
As a result of the selling process, the cost of a B2B sale is much higher. Average sales call costs now average of $350-400. A complex solution may require 8-10 calls to close a sale plus the advertising and marketing expense to generate inquiries and qualify leads.
Balancing out the cost of B2B selling is the value of the sale.
The initial transaction value is measured in hundreds or thousands of dollars and the likelihood of on-going sales is quite high. As a result, the lifetime value of a B2B customer can span many years and add up to hundreds of thousands if not millions of dollars.
Your business-to-business market is more interested in the logic behind your product. They will want to hear more about the features and how it will help them in saving time, money or resources.
Your business-to-consumer market purchases more on emotion. They are more interested in the benefit of the product. They will want to hear more about how their product or service helps them and what benefits it brings to them personally.
Much is actually made of what a B2B and what a B2C are. A B2B, by basic or general definition, is the Business to Business dealings which result in business. A B2C, on the other hand, again by the same basic or general definition, is the Business to Consumer which results in a transaction and business.
It is said that a business dealing with the supplying of raw materials to another business that utilizes the raw material to produce goods can be called B2B transactions. The B2B transaction doesn’t involve any transaction from the direct customer and hence, no direct persuasion of the consumers. A B2B business happens only behind the scenes like the involvement of a technical crew in a film.
This turns out to be a good example that watching a film or releasing them on theaters is a Business to Consumer transaction and making the film means a Business to Business proposition as it involves the necessity of various other services and products and involves other businesses.
When a B2B Marketing Agency acts on behalf of a manufacturer to sell a product the B2B agency doesn’t in fact sell the product to make profit. It is the manufacturer who sells the product. B2B Agencies only help market them and they are dependent only upon the manufacturer for their profits. This way, the term or tag is justified for a marketing agency!