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Home Business

What is the difference between B2B and B2C

Editor by Editor
June 4, 2021
in Business
B2B and B2C
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There is still a lot of uncertainty regarding differentiating what is and how both B2B and B2C marketing work. Planning your marketing strategies and campaigns requires understanding and appropriating each of the tools that these types of marketing can offer you, depending on what kind of customer you want to conquer, and of course, the objectives you intend to achieve with your company.

 It is not that you need to be an expert to understand this topic. Still, it is better to solve your doubts before deciding and starting to develop a marketing campaign within your organization, whether in the B2B or B2C segment.

Well, if you still do not know the differences between B2B and B2C, Axiom B2B Marketing, here are some parameters so that you can understand it better:

Table of Contents

  • What is B2B?
  • What is B2C? 
  • Decision and purchase process
  • Price and repeat purchase
  • Large-scale sales vs own consumption
  • Audience size vs target market
  • Means of promotion
  • Which is better B2B or B2C?

What is B2B?

Brought into words, it means business to business. The b2b marketing is a form of marketing that focuses on carrying out commercial actions (buying and selling) between companies to optimize purchasing processes.

What is B2C? 

 The b2c marketing is about Business to consumer. In this type of marketing, the actions are directed to conquer the final customer. In the vast majority of cases, individuals who offer services of all kinds are made businesses of this type.

Here are few points which make b2b vs b2c 

Decision and purchase process

B2B: The purchasing process can indeed take a bit longer because an approval and review process must be carried out by company departments such as acquisition and accounting, counting on their superiors. In the purchasing cycle, the decision process requires more attention and includes longer times, adding that sometimes the purchasing aspects are managed by the C-Suite (CEO, CMO, COO, etc.)

B2C: In this process, consumers can make their own purchase choices more quickly and with minimal influence from referents or purchase decision-makers. It is also about generating purchases that usually satisfy immediate needs, in which a complete cycle can last even a few minutes.

Price and repeat purchase

B2B: Due to its operating (between companies), buyers usually order a few units, but it develops with higher prices. Repeat purchases and customer churn can be slower and not as constant over time.

B2C: In b2c marketing operations, the products’ prices are generally lower and have a more significant repetition of purchase, which may be seasonal periods or not, but which ensure constant sales over a period of time.

Large-scale sales vs own consumption

B2B: Within this model, large-scale sales are applied, which allows companies to generate higher income or that their campaigns move to a wider audience, of course, creating significant rates of profit.

B2C: It is responsible for generating sales for own consumption, which, in other words, are purchases made by consumers by their means, satisfying only their immediate needs.

Audience size vs target market

B2B: There is an important parameter to take into account. This marketing format offers products or services to other companies, which is more limited because there are fewer companies than people worldwide. In this way, we come to a simple conclusion: its scope and impact on the market may be less due to the required dissemination.

B2C: Because it is dedicated to products or services aimed at end consumers, it is a broader market that is driven, for example, by a massive channel such as the internet. But it is worth noting that the audience can be blurred. It’s easy to lose track of your target market because this type of buyer is a chameleon, difficult to detect and can cause headaches.

Means of promotion

B2B: Advertising is more personalized and must be done through expert publications, which are references for consultation of decision-makers and purchase influencers. The b2b marketing strategies also relevant that the market is known and that the niche print or digital media used to advertise have the confidence guarantee that customers need. In addition, it is vital to generate spaces for dialogue with buyers, which is why specialized events of the sectors are usually held.

B2C: Here, advertising is usually done through traditional mass media, which could generate a mass impact without reaching the real target consumers.

To summarize, it is essential to make a critical decision, ensuring that you invest your time and money correctly in campaigns and strategies through B2B.

Which is better B2B or B2C?

Starting a B2B business is excellent for two main reasons:

  • It’s apparent if you did what people wanted
  • You tend to build to solve your problems
Tags: B2B and B2C
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