When developing a marketing plan, it is very important to identify the type of market to which you want to target your messages and content. There are markets aimed at customers and others at companies. This is why within a corporate ecosystem, we can distinguish two large groups of companies and business models: B2C (business to consumer) and B2B (business to business).
B2C companies are responsible for selling their products or services directly to end consumers, while B2B companies direct their offers mainly to other companies. Both B2C and B2B marketing have as their main objective to influence purchasing decisions and guide a client (user or brand) toward a successful purchase. However, each category has its own particular characteristics, in addition to focusing its strategies on completely different audiences. Below we invite you to know what the most notable differences are:
Audience size
Regarding the target market: B2C sells products or services to end consumers, so the market is broader, while B2B sells products or services to other companies, that is, a more limited sector. The number of Internet users with needs tends to be much greater than the companies that request services. Roughly speaking, there are more people than companies in the world, so of course the size of the audience changes, therefore, B2B and B2B marketing applied to them usually have different reach platforms or at least not in the same impact measure.
Price and repeat purchase
If we start from the previous item, in B2C marketing the competition is greater than in B2B. So in B2C companies, the prices of the products are lower with greater repeat purchases (demand), in B2B orders of few units are usually placed at higher prices. This difference responds to a simple market dynamic that during the 18th century, Adam Smith dedicated himself to explaining in his work “The Wealth of Nations” and called the “Law of Supply and Demand.”
In it, the author explains to us that when demand exceeds supply, the price increases (there are a greater number of buyers, that is, the need increases). On the other hand, when supply exceeds demand, prices decrease (there is greater competition). Since demand is greater in a market with a larger audience, marketing must be focused differently.
Purchase decision
Since in B2C the person who usually decides is the end customer, the type of marketing aimed at this market bases its purchasing strategies on figures of “impulse and emotions”, while in B2B several people can intervene in the purchasing process and it is taken a much more rational decision.
In B2C marketing, the consumer does not give as much importance to the objective characteristics of the product, but rather to what it brings to their life or what it makes them feel and experience. Therefore, in this type of marketing communication is more creative, subjective and emotional. Since in B2B marketing, transactions have greater value and sales arguments are more rational. What matters is not the emotions, but the characteristics of the product or service.
The B2B market is thirsty for information and knowledge and wants information that is as complete as possible through content offers, catalogs, success stories, statistics, growth reports, etc. In short, it is about explaining the objective characteristics of the product in an extensive and detailed manner.
Acquisition times
As we have already seen, while in the B2C market impulse purchases are a fundamental ingredient, when the sale is between businesses, times change and are no longer as rushed as in retail. In B2B, thanks to the analysis of the available options, the time to make a purchasing decision can take much longer, even weeks or months.
Let us remember that in these cases, it is not a single person who decides to buy a product and/or acquire a service; generally, the purchase decision is made by a purchasing committee made up of several people. Reaching a collective consensus that everyone agrees on may take longer.
That is why marketing strategies are developed under a long-term timeline, that is, the results and sales objectives will be seen over a longer period of time. In addition, payments in the B2B market usually take much longer to be made or even paid in installments. In the company-consumer relationship, purchases are made immediately and are paid, most of the time, in full.
Use of platforms
B2C marketing emphasizes social media and traditional media advertising to attract consumers, drive a purchasing decision, monetize your marketing campaigns and content. In parallel, B2B leverages email marketing to communicate its content offers and close its sales. At the same time, business meetings and personal encounters in this market also take on a high role, especially if they involve won tenders and long-term contracts. In agreements made between businesses, the protocols and legal responsibilities are greater, so the platforms used have a much more formal nature.
Social networks and blogs, although they have been the most used recruitment platforms in inbound marketing (both for B2B and B2C markets), we could affirm that through emails, the relationship between businesses is consolidated more strongly. Likewise, these social interaction platforms are excellent for attracting companies if the language used points to a corporate environment and economic growth.
Throughout this article, the multiple differences between the use of marketing aimed at consumers and marketing aimed at companies are made explicit. Analyzing which of the two practices to follow will depend on your business model, the market where you operate and the value proposition you offer in it. Knowing the gap that exists between both categories is a first step to being successful in your strategies.
