Marketing comes with a lot of technical jargon, but that doesn't mean the phrases don't have significance. B2B and B2C marketing may be a pair of acronyms you've heard before, but do you know the difference and how they apply to your business?
Business-to-business or business-to-consumer are two distinct approaches businesses use to promote and sell their products or services to different types of customers. While the two share some similarities, they are completely different approaches, and today, we'll explore not only the difference between the two, but whether you're using the right approach for your business.
As usual, your marketing experts at REM Web Solutions have the breakdown.
Understanding the Difference Between B2B and B2C
So, what is the difference between B2B and B2C? The simple breakdown is this: B2B (or Business to Business) eCommerce uses online platforms to sell products or services to other businesses. REM Web Solutions, for example, sells digital transformation services to other businesses, and we have our own digital platform where you can find our services.
B2C eCommerce on the other hand targets personal consumers, meaning the product or service is marketed to an individual. For example, businesses like clothing brands that advertise on social media are targeted to individuals likely to click on their ads to buy their products.
However, there are more specific differences between the two marketing approaches that are worth exploring:
1. Target Audience
B2B
B2B targets other businesses/organizations as their customers, meaning their products and services are designed to benefit other businesses (i.e. REM Web Solutions sells digital transformation services to other businesses). Another example of this would be an industrial cleaning company offering warehouse cleaning services to industrial businesses. These businesses use these purchased products or services to benefit their own operations, or in some cases, to resell them.
B2C
B2C targets individual consumers who purchase products or services for personal use. For example, targeted Instagram ads will feature businesses that offer products (such as clothing, exercise equipment, consumable products, etc.) or services that will benefit an individual. Someone who regularly consumes workout content or products online is likely to find several fitness ads appearing in their algorithm. Another example of a B2C business that most people are familiar with is Walmart or other similar large retailers.
2. Decision-Making Process
Another big component that sets B2B and B2C apart from one another is the decision-making process involved with their implementation. Let's explore this a little further:
B2B
B2B usually involves a more comprehensive and longer decision-making process. A committee or group within the business usually makes the business purchases and develops a plan based on return on investment (ROI), efficiency gain, and overall business needs.
B2C
B2C on the other hand generally takes a shorter decision-making process, as the sales are based on things such as emotional triggers, brand affinity, and personal preferences of the customers.
3. Relationship Focus
The way B2B and B2C marketing approaches relationships is part of what really sets each approach apart. While both rely on their audience to purchase products or services, how they go about it and the longevity of said relationships tend to differ.
B2B
B2B marketing puts a large emphasis on building long-term relationships and a good reputation with its clients. Relationship building is arguably the core principle of B2B marketing, as transactions often involve ongoing contracts and partnerships. For example, if our business is helping a business improve their SEO, this process can take several months and requires a long-term contract to achieve the best possible result.
B2C
B2C marketing focuses more on transactional relationships with individual customers – i.e. turning clicks into purchases. While brand loyalty is also important (you always want customers to return and buy more), the relationship is less personal. It is more so based on the transaction. Of course, it doesn't mean B2C is entirely impersonal, as the marketing and product/service is geared towards a target demographic. Still, it is less based on a very specific tailored experience. Rather, marketing efforts target a demographic of people who are likely to want to purchase the product and said purchase could be a one-time thing or continued depending on the product. It could also be a subscription service, which, while ongoing, is not the same as a tailored contract.
4. Marketing Strategies
While both methods utilize effective marketing methods, their approaches are entirely different. How you develop a marketing strategy will directly affect who you interact with and how you sell products and services.
B2B
B2B involves marketing strategies that rely on direct sales, ongoing relationship management, and educational content. Channels B2B businesses often utilize involve industry events, email marketing campaigns, content marketing, and platforms such as LinkedIn.
B2C
In the case of B2C, marketing strategies tend to focus on mass marketing campaigns through channels such as social media, TV commercials, print ads, or even influencer partnerships. Emotional appeals, discount codes and deals, and convenience plays a significant role in their marketing efforts.
For example, AG1 is a supplement company that sells a green powder containing vitamins and minerals. The powder is generally marketed as a way to increase nutritional health. AG1 regularly partners with influencers on YouTube and Instagram to market its product.
5. Content and Messaging
How B2B and B2C present their digital content and messaging differs due to the scope of their audience.
B2B
The content developed by B2B marketing strategies tends to focus on more technical features, specifications, and how the product and service can solve specific challenges facing businesses and focuses on how their product and service can improve efficiency. For example, Mailchimp is an email marketing company that helps businesses develop email marketing campaigns with tools such as automation to help ease the marketing stress on businesses.
B2C
Content developed by B2C marketing strategies instead focuses on a more emotional/lifestyle-oriented approach, highlighting how the product or service will enhance the consumer's life, fulfill a need, or give them enjoyment.
6. Sales Cycle
How the sale cycle operates varies between B2B marketing and B2C marketing due to who they’re marketing to. The length of time, comprehensiveness, and financial impact are all considerations to consider between the two approaches.
B2B
B2B usually has a longer sales cycle due to the complexity of the decision-making process as well as the high financial stakes. It involves several touchpoints and interactions with internal committee/group members before a sale is closed. This process could involve account managers, sales professionals, and even the business owner before a contract is settled.
B2C
B2C generally has a much shorter sales cycle, with consumers making more impulsive or quicker purchases based on immediate needs or desires. For example, someone looking for a summer dress to wear to a party sees a TikTok ad for the product they desire, they click on the ad, to go the website, add the product to the cart, and finalize the purchase.
Have You Been Targeting the Wrong Audience? What To Look For
Now that we understand the key fundamental differences between B2B marketing and B2C marketing, we need to explore if you’re using the right marketing strategy. If you’re using the wrong one, you could be losing out on potential business - which doesn’t bode well for you.
Here are some of the main consequences that come from using the wrong marketing strategy:
Wasted Resources
Marketing efforts directed at the wrong audience can result in wasted resources, including time, money, and effort spent on campaigns that do not resonate with or reach the intended customer base. Suppose your business has products and services that suit other businesses, but you're trying to market them to individuals on Instagram. In that case, you are not only not reaching the right people, but you're wasting money on marketing efforts that aren't working for you.
Low Conversion Rates
If your marketing doesn’t align with the preferences, needs, or behaviours of your targeted audience, you’re going to find you have low conversion rates. For example, if you’re selling B2B social media branding services for small businesses, but your ads are only reaching individuals who, well… don’t have businesses – they’re going to scroll right past your ad. This results in fewer sales and a lower return on investment (ROI) for your marketing efforts.
Brand Confusion
If you’re targeting the wrong audience, people viewing your brand are going to be confused. They aren’t going to understand what your brand stands for or who your primary customer base is. Imagine you go into a kitchen appliance store, but all the flyers and advertisements are directed towards people looking for gym equipment. A very dramatic and unlikely scenario, yes, but it highlights a very real potential issue. Your brand's identity can become diluted if you're not using the right marketing tactics, which makes it difficult to build a strong, consistent brand image.
Loss of Credibility
Credibility and reputation are essential for building a loyal customer base. However, if your potential customers are getting the message that your business doesn’t understand their wants or needs, or if you’re targeting the wrong audience altogether, it can harm your business’s credibility and reputation in the long run. This leads to an overall loss of trust and can be very difficult to recover from.
Missed Opportunities
If you focus your efforts on the wrong audience, your business is going to miss out on opportunities to connect and serve your ideal customers. This will limit your business's ability to grow and reduce your marketing potential.
Competitive Disadvantage
Competitors who effectively target the correct audience with tailored marketing strategies are likely to gain a competitive advantage. The business may lose market share to competitors who understand and meet the needs of the right audience while your business is left behind.
Long-term Impact
If you use the wrong marketing approach and attract the wrong audience, you'll suffer long-term consequences, including impacts on current and future sales/growth and business sustainability. Realigning your marketing strategies and regaining all that lost ground could take serious effort. Luckily, businesses like REM Web Solutions can help.
How Do You Prevent from Targeting the Wrong Audience?
To avoid these issues, businesses need to conduct thorough market research to ensure they truly understand their target audience and their needs, behaviours, and preferences. You need to determine whether you're marketing your services and products to businesses or if your offerings are more suited to an individual.
This approach will improve marketing effectiveness and strengthen relationships with customers, thereby enhancing business performance.
If you're completely lost with how to approach marketing, however, REM Web Solutions has your back. We specialize in digital transformation and offer comprehensive marketing strategies to help get your business out there. We can help you determine what strategy is going to suit your business best and do the leg work of getting your business in front of the eyes of the right audience. Contact us today for more information.
Don't stay in the dark about your business or its potential.
