Contents Marketing for B2B vs. B2C Similar but Different ...................... 2 What is B2B and B2C MARKETING?

? ............................................ 2 Businesses that Sell to Consumers: (Business-to-Consumer) ..... 3 Businesses that Sell to Businesses (Business-to-Business) ......... 4 The B2B Buyer vs. the B2C Buyer: .............................................. 4 Importance of Brand .................................................................. 5 B2C versus B2B: The Most Important Social Media Platform ..... 6 Five B2C versus B2B social media trends: ................................... 7 The impact of the Internet ......................................................... 8 Conclusion: ............................................................................... 10 Reference ................................................................................. 11

Marketing for B2B vs. B2C Similar but Different

Business-to-business (B2B) and business-to-consumer (B2C) marketing is different. Some people think marketing is marketing and whether you are marketing to consumers or marketing to businesses, you are still just marketing to people, right? Well, yeah they are people, but a person buying a product for themselves verses buying for their company is a very different, emotional experience. In fact, there are profound differences that you must remember when developing your marketing activities. B2B depends on relationship building marketing efforts. Using consumer-focused strategies to market your B2B business will, at best, just cost you money. And, in some cases, it may cost you customers1.

What is B2B and B2C MARKETING?

These terms were coined to differentiate Internet commerce businesses that sold to primarily to consumers verses those whose market are other businesses. These terms have expanded their definitions to refer to any business who sells primarily to the end customer (B2C) or to other businesses (B2B), both online and offline. Although the marketing programs are the same for each type of business (events, direct marketing, internet marketing, advertising, public relations, word of mouth and alliances), how they are executed, what they say, and the outcome of the marketing activities differ. Now, lets get started with B2B. The term B2B or B to B or Business to Business refers to transactions between two businesses where both the buyer and seller are business owners. Hence, in B2B environment, the product is not sold to end users. Buyers purchase products in large quantities to satisfy the demands of their local consumers. The term B2C or Business to Consumer refers to transactions between a business and end-user. An example of B2C can be one of your local stores. The store is a business which sells products to local consumers or end users. Another example can be an e-commerce website selling products or services to individuals from around the world2.

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http://masterful-marketing.com/marketing-b2b-vs-b2c/ http://community.tradekey.com/article-34/Difference_Between_B2B_and_B2C_Explained_Thoroughly.html

The primary differences between B2C and B2B marketing are derived from the emotional perspectives of the buyers. Often, the consumer is focused on quality, comfort, and price, while the business buyer is concerned with increasing profits for his/her company.

Businesses that Sell to Consumers: (Business-to-Consumer)

Involves targeting a large audience of individuals Focuses on products, services, and transactions Creates brand awareness and loyalty through imagery and repetition Drives single-step purchasing decisions using emotional decisions based on status, impulse, or price Relies on merchandising and point-of-purchase activities Requires cash, checks, or credit card payments

The ultimate goal of B2C marketing is to convert shoppers into buyers as aggressively and consistently as possible. B2C companies employ more merchandising activities like coupons, displays, store fronts (both real and Internet) and offers to entice the target market to buy. B2C marketing campaigns are concerned with the transaction, are shorter in duration and need to capture the customers interest immediately. These campaigns often offer special deals, discounts, or vouchers that can be used both online and in the store. For example, the goal of an email campaign for a B2C company is to get consumers to buy the product immediately. The email will take the consumer to a landing page on the web site that is designed to sell the product and make purchasing very easy by integrating the shopping cart and checkout page into the flow of the transaction. Any more than a couple of clicks and the customer is likely to abandon the shopping cart. One interesting aspect of B2C marketing, however, is that many companies have realized the importance of loyalty. Amazon, Best Buy, and Staples combine merchandising and education to keep customers coming back. Add great customer service, and you get a winning combination3.

http://www.thesocialcmo.com/blog/2010/10/b2c-vs-b2b-marketing-do-the-differences-really-matter/

Businesses that Sell to Businesses (Business-to-Business)

Involves targeting a small audience of groups or committees Focuses on relationships Creates brand awareness and loyalty through personal relationships Drives lengthy, multi-step buying cycles using rational decisions based on bottom-line business value Relies on educational and awareness-building activities Requires credit lines or open orders paid each month. Although the goal of B2B marketing is to convert prospects into customers, the process is longer and more involved. A B2B company needs to focus on relationship building and communication using marketing activities that generate leads that can be nurtured during the sales cycle. B2B companies use marketing to educate various players in the target audience because the decision to purchase is usually a multi-step process involving more than one person. For example, the goal of an email campaign for B2B is to drive prospects to the web to learn about your products and services. The e-mail to a business must contain contact information for offline communications and the landing page should contain information on features, benefits, and possibly pricing. This marketing activity is usually the first step in a longer, integrated touch campaign that may include direct mail, telemarketing, Web casts, and newsletters and follow up by sales representatives who will discuss the businesses requirements in more detail and move the prospect through the sales cycle. Content is king for B2B marketing and white papers, newsletters, and coverage of your products and services by the media helps companies educate their prospects4.

The B2B Buyer vs. the B2C Buyer:

The business buyer is sophisticated, understands your product or service better than you do, and wants or needs to buy products or services to help their company stay profitable, competitive, and successful. Marketing copy must talk to a sophisticated audience.

http://masterful-marketing.com/marketing-b2b-vs-b2c/

Your typical reader has a high interest in and understanding of your product (or at least of the problem it solves). Therefore, writing marketing copy is more complex and requires research to ensure you deliver the necessary information to the buyer. The B2C buyer is usually looking for the best price and will research the competition prior to shopping. Another factor that does come into play, however, is whether the buyer trusts the retail outlet, either the store front or on the Internet. Although you can find the products on the Internet at many different price points, many consumers will still buy from a trusted source. In that respect, B2C marketing needs to convince the person to buy and build trust and loyalty with their customers. Both buyers are interested in quality customer service. B2B customer service comes into play prior to ever making that first sale and begins with a customers very first contact with your company, whether you call them or they call you. B2C customer service helps build customer loyalty where customers will be willing to pay a slightly higher price to know that they can return the product easily and can trust the source they are dealing with. In other words, customer service is critical and although may not be considered marketing, bad customer service can render all of your marketing efforts useless.

Importance of Brand
A strong brand is important to both the B2B and the B2C markets, but for different reasons. With B2C, a strong brand can encourage the consumer to buy, remain loyal and potentially pay a higher price. In B2B markets, brand will only help you be considered, not necessarily chosen. Business buyers are using more rational thought when selecting a product or service for their company. They are motivated by saving money, increasing productivity or raising profitability. Consumers are motivated by desire, style and prestige. For consumers, brand plays into the equation since we are more apt to buy status brands, such as BMW, Lexus, Rolex or Nike even though we most likely will pay more for the brand. In businesses today, however, the adage no one ever got fired for buying IBM no longer rings true. This is not to say that a professionally developed brand is not important for a B2B business. A quality brand is needed in

any business in order to make a good first impression, but putting excessive marketing dollars into building brand awareness is not what counts in your B2B marketing plan. But is the gap between B2C and B2B marketing narrowing or widening? While much has been written about how todays consumer is becoming more businesslike in his/her purchasing habits (the new frugality trend, for instance), the fact is the consumer still responds powerfully to marketing messages that deliver promises of happiness, comfort, escape, and selfreward, noted Hennig. Recent upticks in dining out and luxury goods sales are great examples of how emotional messaging to consumers is still highly effective. Through tracking such differences and similarities, as well as the ongoing impact of social media evolution on both B2C and B2B marketing, potential specific approaches and methods can be identified for reciprocal crossover improvements as well as the identification and advancement of best practices.

B2C versus B2B: The Most Important Social Media Platform

B2C and B2B marketers differ on the most important social media platform for marketing according to Social Media Examiners 2013 Social Media Marketing Industry Report, a survey of both B2C and B2B businesses using social media in their marketing mix. This makes sense since each social media venue has a different focus. Facebook is clearly the dominant platform for B2C marketers. Its top ranked by 67% of B2C respondents while 11% of B2C respondents rank blogging top, and 10% of B2C respondents rank Twitter as top. By contrast, LinkedIn and Facebook are tied with 29% of B2B respondents citing each as the top social media platform. Further 19% of B2B respondents rate blogging as their top venue and 16% of B2B respondents rate Twitter as their top venue5.

http://heidicohen.com/b2c-versus-b2b-the-most-important-social-media-platform-research/

Five B2C versus B2B social media trends:

1. B2B marketers use a more diverse array of social media platforms than B2C marketers. Roughly two out of three B2C marketers put Facebook at the top of their social media list. Understand that in some countries, Facebook may be the only social media choice for marketers, B2C or B2B. 2. Both B2B and B2C marketers underutilize blogging less than one out of five puts it at the top of their list. A blog should be a marketers first social media platform since its owned. Further it provides a continual stream of fresh content that feeds social media. (Heres how to establish your blog.) 3. Both B2B and B2C marketers dont get the power of YouTube. While video can be expensive relative to other forms of content creation and social media, dont let this keep you from building your presence on YouTube. Its the second largest search engine! Since you need to be present to be found, consider low-cost alternatives. Also incorporate video creation into your television advertising creation budget. Both Orabrush, a B2C company, and Blendtec, a B2B company, built their brands based on low-cost YouTube videos. 4. B2C marketers, especially those targeting teens and twenty-somethings, are missing an opportunity with Tumblr. While Tumblr has been in the Nielsen top ten, social media sites for a couple of years, its still below the radar for most marketers. At a minimum, test this visual micro-blogging platform. 5. B2B marketers overlook the power of SlideShare. Owned by LinkedIn, Slideshare generates leads for B2B organizations. Start building your presence on this powerful social media entity for business. B2C marketers tend to engage with prospects while theyre on social media for personal reasons and B2B marketers tend to engage with prospects while theyre at work. Marketers must

appreciate that customers, regardless of whether theyre purchasing for themselves, their family or their business, still use the same approach to seeking information. Therefore, while the product differs, the social media platforms dont. This translates to opportunities for marketers willing to explore new social media entities.

The impact of the Internet

The Internet has become an integral component of the customer relationship management strategy for business marketers. Dwyer and Tanner (2006)6 note that business marketers not only use the Internet to improve customer service but also to gain opportunities with distributors. According to Anderson and Narus (2004)7, two new types of resellers have emerged as by-products of the Internet: infomediaries and metamediaries. Infomediaries, such as Google and Yahoo, are search engine companies that also function as brokers, or middlemen, in the business marketing world. They charge companies fees to find information on the Web as well as for banner and pop-up ads and search engine optimization services. Metamediaries are companies with robust Internet sites that furnish customers with multiproduct, multivendor and multiservice marketspace in return for commissions on sales. With the advent of B-to-B exchanges, the Internet ushered in an enthusiasm for collaboration that never existed beforeand in fact might have even seemed ludicrous 10 years ago. For example, a decade ago who would have imagined Ford, General Motors and DaimlerChrysler entering into a joint venture? That's exactly what happened after all three of the Big Three began moving their purchases online in the late 1990s. All three companies were pursuing their own initiatives when they realized the economies of scale they could achieve by pooling their efforts. Thus was born what then was the world's largest Internet business when Ford's Auto-Exchange and GM's Trade change merged, with DaimlerChrysler representing the third partner.

Dwyer, F. Robert, Tanner, John F. (2006) Business Marketing: Connecting Strategy, Relationships, and Learning, 3rd Edition, McGraw-Hill/Irwin 7 Anderson, James C., and Narus, James A. (2004) Business Market Management: Understanding, Creating, and Delivering Value, 2nd Edition, 2004, Pearson Education, Inc

While this exchange did not stand the test of time, others have, including Agentrics, which was formed in 2005 with the merger of Worldwide Retail Exchange and GlobalNetXchange, or GNX. Agentrics serves more 50 retailers around the world and more than 300 customers, and its members have combined sales of about $1 trillion. Hutt and Speh (2001)8 note that such virtual marketplaces enable companies and their suppliers to conduct business in real time as well as simplify purchase processes and cut costs.

Hutt, Michael D., Speh, Thomas W. (2004) Business Marketing Management: A Strategic View of Industrial and Organizational Markets, 8th Edition, Thomson/South-Western

Conclusion:
The difference between B2B and B2C marketing comes down to the buyers emotional perspective about the purchase. Consumers make buying decisions based on status, security, comfort and quality. Business buyers make buying decisions based on increasing profitability, reducing costs and enhancing productivity. If you are a B2B business offering products and services to other businesses, put your marketing dollars into marketing programs and materials that offer your target what they need to make a rational buying decision. Help them determine the value of the product and service you offer through quality materials, testimonials, and other activities that build credibility. If you are a B2C business, understand what motivates your buyer and the emotional aspect of the buying decision. Create compelling materials that build awareness for your brand, enhance their comfort in buying from you, and project quality service and best price. As you create your marketing plan for the coming year, remember what is important to your target audience and create your marketing programs to speak to them. While there are different tactics to take with B2B and B2C customers, youre still marketing to human beings, and human beings are emotional creatures. The importance of targeting the emotional core of why a prospect should purchase from you is absolutely critical. Just like consumers, businesses will spend lots of money on products and services to fulfill ego- and satisfactiondriven desires even if its not critical to the bottom line. The trick when selling to B2B customers is knowing what their emotional needs are; discover that and you can make the sale. Social media is a catalyst for encouraging b2b sales to be based on personality as much as the cold facts of the product/service. B2B consumers now have the advantage of using social media platforms to see the reputation, personalities and expertise of the provider. Now that we have social media, simply a great product/service isnt going to cut it For example, you are printer company in competition with another half a dozen in your area, what is it that makes you different? It is the people behind the product; the personalities, knowledge and expertise. Social media allows this to come across like never before, drifting away from the hard sell towards the

lurking from afar, allowing you to gain insight into who exactly it is you might want to do business with.

Reference
http://community.tradekey.com http://masterful-marketing.com http://www.thesocialcmo.com http://heidicohen.com Dwyer, F. Robert, Tanner, John F. (2006) Business Marketing Anderson, James C., and Narus, James A. (2004) Business Market Management. Hutt, Michael D., Speh, Thomas W. (2004) Business Marketing Management.