B2B and B2C Marketing – International Business Management Institute

There is a difference between marketing to businesses and marketing to consumers. Business-to-Business (B2B) markets differ from Business-to-Consumer (B2C) markets in many ways and thus require different marketing actions.

For one, the number of products sold in business markets dwarfs the number sold in consumer markets.

Suppose you buy a computer from Dell. The sale amounts to a single transaction for you. But think of all the transactions Dell had to go through to sell you that one computer. Dell had to purchase many parts from many computer component makers. It also had to purchase equipment and facilities to assemble the computers; hire and pay employees; pay money to create and maintain its website and advertisements; and buy insurance, accounting, and financial services to keep its operations running smoothly. Many transactions had to happen before you could purchase your computer.

Business marketing generally entails shorter and more direct channels of distribution. 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. A single customer can account for a huge amount of business. Some businesses, like those that supply the U.S. auto industry, have just a handful of customers, i.e., General Motors, Chrysler, Ford, etc.

However, B2B and B2C marketing do share some basic principles. Namely, the marketer must always:

successfully match the product or service strengths with the needs of a definable target market
position and price to align the product or service with its market, often an intricate balance
communicate and sell the product in the fashion that demonstrates its value effectively to the target market

Fabian Backer