B2B versus B2C marketing: Key Differences and Similarities that matter

The marketing world is replete with catchphrases and buzzwords that seem difficult to decipher often. However, knowing them is worthwhile when it comes to conveying your ideas and strategies to external stakeholders and peers.

B2B marketing and B2C marketing are two such jargon that one bumps into quite frequently when learning about marketing. Both are sales models and often hash out similar products. For example, a crockery manufacturer can be both B2C and B2B at the same time. Manufacturers can sell their products directly to customers or sell them to retailers. Knowing the points of contrast and similarities between the two will help you understand your target audience and build your marketing strategy.

So, here we go!

B2B Vs. B2C Marketing: Differences

Both sales and marketing models differ in many ways, such as their target audience, content type, direct online sales, acquisition costs, and so on. Let’s look at all of them piece by piece. Read on!

1. Target audience:

If one had to mention the main marker of difference between the two, it would be the target audience. A person involved in B2B purchase and B2C purchase might be the same; however, the ways they both act and the motivations that drive them are poles apart. The persona of B2C buyers depends on their affinity and interests. For instance, whether they consider pricing too much, do they adore luxury products, and demographics like location, gender, age, etc.

While in B2B sales, the recognizable features of the target audience may be their professions. The products and services here are pitched to managers, high-level executives, finance heads, etc.

2. Customer relationships:

In a B2B sale, buyers take more time to evaluate the offering before making a decision. Thus, they develop robust and ongoing relationships with their sellers. And any bad contact may deteriorate these relationships forever. Another issue faced in the B2B sales model is migration costs and long-term contracts. Often these businesses may find themselves stuck in such contracts and may end up bearing hefty migration costs.

On the flip side, in the B2C sales model, you get to see a relatively short customer relationship management cycle. Customers here are less loyal and contact retail sale points only. Moreover, they may or may not return to buy from you.

3. Acquisition costs:

To acquire a customer in the B2B model, you need to spend more. Typically, the steep prices paid by customers justify the capital you invest in acquisition. On the other hand, In B2C sales, customer acquisition costs are low. Some customers decide a purchase from referrals, impulsive buying, word of mouth, etc.

4. Lead pool size:

B2Cs target hundreds and millions of customers at a time, while B2 B’s reach is fairly narrower. For example, Kindle targets millions of readers worldwide. Thus, they curate features and content to reach them. However, B2B brands like Ableton deliver products/ services for professionals. Thus, the lead pool size for B2C is much larger compared to the B2B sales model.

5. Sales experience:

Salespeople in B2C are experienced and get success with and short learning curve. However, in B2B, salespeople are familiar with the products they offer in an in-depth manner. In order to come up with the right personality and sales strategy, B2B sales professionals may take years.

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B2B & B2C Marketing: Similarities

Although there are many differences between B2B and B2C marketing, similarities exist as well. What are they? Both B2B and B2C marketing require excellent customer experience and enhanced customer service. Both of them need authenticity, credibility, and trust to make sales. Let’s walk you through all the points of similarity in detail.

• Both B2B and B2C sales models involve real people on end as sellers and buyers.
• Both B2B and B2C require trust, credibility, and authenticity to make a sale.
• Both B2B and B2C don’t end with the purchase. They persist longer after for repeat sales and retention.
• Both B2B and B2C sales keep customers first when devising a marketing strategy and through the sales process.
• Both B2B and B2C sales models seek to solve customers’ problems.
• Both B2b and B2C sales need customized experiences to engage, convert, nurture, and make sales.
• Both B2B and B2C need well-aligned and consistent marketing messages.
• Both B2B and B2C need that you deliver several contact points across diverse channels.
• Both B2B and B2C sales models require a precise and clear strategy. You must be able to mitigate risks, gauge performance, and settle issues effectively.

 

B2B selling though is way different from selling to B2C customers, although they both entertain a few similarities. There are, however, brands that make B2C and B2B sales simultaneously, and often they use the same channels to make the sales. Thus, the contrasts between the two models must not be viewed as etched in stone. Instead, there would be certain instances where these rules may not apply.

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