Business to Consumer (B2C) vs. Business to Business (B2B) Marketing

Marketing to businesses and marketing to consumers are two very different animals. B2B markets to individuals acting on behalf of organizations, while consumer marketing targets single individuals who pay for their own transactions as consumers. The strategies and tactics for these two very different audiences are quite different.

“Marketing to businesses and marketing to consumers are two very different animals.” 

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Consumer marketing, or business-to-consumer (B2C) marketing, sales are made to individuals who are the final decision makers, though they may be influenced by family members or friends. A business marketing, or business-to-business (B2B) marketing, sale is made to a business or firm.

Similarities between B2C and B2B Marketing

Marketing to a business and marketing to an individual are similar in terms of the fundamental principles of marketing. Both B2C and B2B marketing objectives reflect the fundamental principles of the marketing mix, and in both situations, the marketer must always:

• Successfully match product or service strengths with the needs of a specific target market
• Position and price products or services to align products and service offerings with the market
• Communicate and sell products or services so that they effectively demonstrate value to the target market

Basic Differences between B2C and B2B Marketing

At the core of the difference between marketing to businesses and consumer is one factor – making the decision based on logic (businesses) vs. based on emotion (consumers). A B2B purchase is based more on logic and why a consumer’s purchase is based more on emotion. The B2B audience is seeking efficiency and expertise, while the consumer audience is more likely to be seeking deals and entertainment. Accordingly, the B2B purchase process tends to be rationally and logically driven, while consumer choices are typically emotionally triggered (whether by hunger, desire, status or cost).

• B2B – Logic. When you are marketing to a B2B you want to focus on the logic of the product.
  • Features. You do this by focusing on the features of the product. There is little to no personal emotion involved in the purchasing decision. You want to focus on understanding the organizational buyers and how they operate within the confines of their organization’s procedures. What’s their role? What’s important to them?
  • Helping the Buyer. It is not about the product, it’s about the people using the product and/or service. If you are struggling with your messaging try to focus more on what your product or service does to what it means for their business.
  • Marketing Materials. The B2B market has a thirst for knowledge and they are information seekers. Be more in-depth with your marketing materials.
  • Return on Investment. Your most effective marketing message will focus on how your product or service saves them time, money and resources. What the return on investment that they can expect with their purchase? That ROI can be time-saving, resource saving or money saving, but it has to be clear in order to get everyone onboard. Your business-to-business market is required to substantiate their purchase through a logical argument, financial scrutiny, and data. Keep their needs, desires and motivations on the table, but back it with logic, financial benefits, and strong data.
• B2C – Emotion.When you are marketing to a consumer you want to focus on the benefits of the product. Their decision is more emotional.
  • Short and Sweet. Consumers are less likely to be interested in a lengthy marketing message. They will want you to get right to the point. Consumers don’t want to work to understand your benefits, instead, they will want you to clearly point out the benefits to them. With consumers, your message must be simple, easy to understand. You will also tend to find that consumers have a much shorter purchasing process than businesses. They can purchase within a few minutes to within a few days.
  • Focus on Results. Your most effective marketing strategies will focus on the results and the benefits that your product or service will bring to them. Your business-to-consumer market purchase more on emotion. They are more interested in the benefit of the product. They will want to hear more about how their product or service helps them and what benefits it brings to them personally. Focus on the problem or pain point that you solve.

While the basics of marketing are similar for selling consumers versus selling businesses on the value of your offering, there are many differences. Although you are still selling a product to a person, experience shows that the difference between these two types of markets runs deep.

Other Differences between B2C and B2B Marketing

There are several other differences between selling to business versus selling to consumers:

• Buyer-Customer Relationship. While consumer marketing is aimed at large groups through mass media and retailers, the negotiation process between the buyer and seller is more personal in business marketing. Sales representatives and marketers are often assigned to market to individuals who act as influencers or decision-makers in the customer organization. The bulk of a consumer’s interaction with a brand typically happens via an advertisement, promotion, or transaction. In contrast, B2B marketing can include numerous meetings between the seller and buyer before a transaction occurs. For example, B2B marketers often present products and their benefits in private presentations to key decision-makers. The B2B organization may also invite prospects and customers to public or private events to facilitate further conversations. As a result, confidence and trust are gradually built between the seller and buyer over a period of time. Significant time and money are spent during the evaluation and selection process, resulting in strong brand loyalty among B2B customers.
• Communications Channels. Although on the surface the differences between business and consumer marketing may seem obvious, there are more subtle distinctions between the two, with substantial ramifications. The evaluation and selling process for B2B purchases are longer and more complex than consumer purchases. However, business marketing generally entails shorter and more direct channels of distribution to target audiences. Different aspects of the promotional mix can be easily personalized due to the relationship between a B2B salesperson and the individual buyer.
• Cost of Sale. It is true that the cost of a sale for the business-to-business market is more expensive and typically higher than the business to consumer market. The easiest way to explain this is that a business-to-business transaction often takes more consideration and more people tend to be involved, requiring more decision makers. The B2B consumer will more often than not need to be able to prove a return-on-investment for their purchase.
• Use of Advertising. Most business marketers commit only a small part of their promotional budgets to general advertising, usually through direct marketing efforts and trade publications. For example, a business marketer may allocate spending to banner advertising or paid search. Similar to consumer ads, these advertisements lead to landing pages, where marketing messaging aims to convince web visitors to submit a form, download a brochure, or register for a webcast. While business advertising is limited, it helps generate leads that marketing can pass along to sales representatives.
• Distribution Channels. Consumers are different in that they demand a variety of distribution channels for convenience, not so with the B2B market.
• Jargon vs. Connection. Marketers can use industry jargon to excellent effect on B2B platforms, but on B2C, the voice must be at least relatable to the majority of consumers — meaning fewer buzzwords and (usually) simpler language.
• Learn vs. Use. B2B clientele want to be educated and provided with expertise. They often want to look like the workplace rock stars or heroes thanks to their excellent decisions. B2C customers just want to enjoy themselves, be happy with their purchase and have it adequately fulfill their needs.
• Content. Highly detailed content is required for B2B marketing. It’s an audience that expects to be catered to by a sales and marketing team. On the other hand, B2C social media activities simply need to meet the basic needs of being useful, humorous and shareable, which admittedly, can be just as complicated.
• Long vs. Short. Lengthy content tends to work for B2B since a brand or business has to prove its expertise and give its target audience a reason to buy in. Consumers tend to prefer something short and snappy, especially for lower-priced B2C products.
• Nature of Relationship. A B2C consumer following your brand isn’t necessarily looking to build a close relationship with it. Inversely, the B2B crowd wants information and the ability to build a close relationship with brands.
• Buying Process. B2B marketers have a much longer chain of command to deal with since procurement, accounting and their superiors often need to approve purchases. On the other hand, an individual typically makes their own speedy B2C purchase choices — possibly with the slight influence of others via recommendations or suggestions.
• Sales Cycle. The B2B buying cycle is often much longer than the B2C decision process. Therefore, it requires much more nurturing and close attention. B2C buys tend to satisfy immediate needs, while B2B decisions are meant to complete long-term goals.
• Contract Length. A contract for a B2B purchase tends to last months or even years, making it a much more significant decision. On the contrary, the total B2C cycle can be as short as a few minutes depending on the product.
• Spending Level. B2B purchasers generally spend more money, as the buying process tends to be more complex and lengthy.
• Core Problems. The two types of marketers have distinctive problems. Often, the largest problem that B2B marketers have is a lack of content and time to create it. This differs from B2C marketers who would rather have a bigger advertising budget and other ways to spread the word about their products. Naturally, this has a significant effect on tactical executions.

There is plenty of common ground between B2B and B2C marketing, but these key disparities are essential for professionals who work on either (or both) sides to understand to be as successful as possible. However, at the end of the day, no matter which side of the B2B or B2C divide a marketer works on, all marketing is P2P — person to person — despite the external differences.