B2B and B2C marketing
Business-to-business (B2B) and business-to-consumer (B2C) marketing are the two main sub-sectors of marketing.
B2B marketing
Any marketing tactic or piece of content that is targeted at a company or organization is known as B2B (business-to-business) marketing. B2B marketing strategies are frequently employed by businesses that sell their goods or services to other businesses or organizations rather than to consumers. Products that have been sold using B2B marketing include:
- Main equipment
- supplementary equipment
- Basic components
- component elements
- processed components
- Supplies Venues
- commercial services
The following are the four main categories of B2B product buyers:
- B2B marketing products are used by producers to create their own goods (e.g., Mattel buys plastics to make toys)
- Retailers and wholesalers who act as resellers purchase B2B goods (e.g., Carrefour buying vacuums to sell in stores)
- Governments purchase B2B goods for use in government initiatives (e.g., purchasing contractor services to repair infrastructure)
- Institutions continue to operate using B2B products (e.g., schools buying printers for office use)
B2C marketing
Business-to-consumer marketing, or B2C marketing, describes the techniques and plans used by a business to market its goods and services to specific individuals.
Historically, this could broadly refer to people shopping for personal items. B2C refers more recently to the online retailing of consumer goods.
C2B marketing
C2B marketing, also known as consumer-to-business marketing, is a business model in which final consumers produce goods and services that are used by companies and organizations.
It runs counter to the widely accepted idea of B2C, or business-to-consumer, in which businesses make their products and services available to customers. Businesses profit from customers' willingness to set their own prices or provide data or marketing to the business, while customers gain from flexibility, direct payment, or receiving free or discounted goods and services..
This type of business model provides a company with a competitive edge in the market, which is one of its main advantages.
C2C marketing
Customer to customer marketing, or C2C marketing, refers to a market setting where one customer buys goods from another customer while using a platform or business operated by a third party to facilitate the transaction. With the development of e-commerce and the sharing economy, a new type of business, known as C2C companies, has emerged.
Differences in B2B and B2C marketing
The B2B and B2C markets differ due to the different marketing objectives for B2B and B2C. Demand, purchasing volume, customer count, customer concentration, distribution, buying style, buying influences, negotiations, reciprocity, leasing, and promotional techniques are the main differences between these markets.
- Demand: Businesses purchase products based on how much demand there is for the finished consumer good, which is how B2B demand is derived. Businesses base their product purchases on the needs and wants of their clients. Customers buy products based on their own wants and needs, which drives B2C demand.
- Volume of purchases: Businesses buy goods in bulk to distribute to customers. Smaller quantities of products meant for personal use are purchased by consumers.
- Customers: Compared to direct consumers, there are relatively fewer businesses to market to.
- Customer concentration: While the customers who purchase products from businesses that specialize in a particular market are not geographically concentrated, the businesses themselves often are.
- Distribution: B2B products are distributed directly from the manufacturer to the business, whereas B2C products must also pass through a wholesaler or retailer.
- Buying Nature: B2B purchasing is a formal process carried out by experienced buyers and sellers, whereas B2C purchasing is more casual.
- Buying influences: While B2C marketing is only influenced by the customer making the purchase and perhaps a few others, B2B purchasing is influenced by many people in various departments like quality control, accounting, and logistics.
- Negotiations: In B2B marketing, negotiating for reduced costs or additional benefits is frequently accepted, whereas prices are fixed in B2C marketing (especially in Western cultures).
- Reciprocity: Businesses often purchase goods and services from other businesses. For instance, a company that sells printer ink is more likely to purchase office chairs from a vendor who also buys the company's ink. This doesn't happen in B2C marketing because customers aren't also retailers.
- Leasing: While consumers typically save up to buy expensive items, businesses typically lease expensive items.
- Promotional methods: Personal selling is the most popular form of promotion in B2B marketing. Sales promotion, public relations, advertising, and social media are the main tools used in B2C marketing.