Fundamental Differences Between B2B and B2C Business
In this article, you can read "Fundamental Differences Between B2B and B2C Business". Understanding of business, in general, cannot be separated from the activities of production, buying, selling, and exchanging goods and services involving people or companies. Whereas in a narrower context, the notion of business is often associated with businesses, companies, or organizations that produce goods and services to generate profits or profits.
When a business is built, one of the main focuses that need to be matured is the target market. Determining the target market of the business is the key to business development because business models and strategies for developing the business depend on their target customers.
There are two basic types of business namely Business to Business (B2B) and Business to Customer (B2C). Know more fully about the differences between the two.
Table of Contents
- Business Objectives & Business Interests
- Knowing the Types of Business
- Differences in B2B and B2C Marketing Strategies
- Difference between B2B companies and B2C companies
- Equation of a Basic Approach
Business Objectives & Business Interests
The purpose of a business is to serve the needs of customers and try to make a profit. In general, everyone runs a business because he sees an opportunity to create goods or services that have not been offered by other companies. It also can be influenced by the desire to produce goods that are cheaper compared to other companies. Thus, the opportunity to get profit can be more open because it can provide goods and services for consumers. There are five parties involved in a business. Namely the owner, creditors, employees, suppliers and customers.
Know the Types of Business
Business to Business is a business transaction that is carried out electronically or physically and occurs between one business entity to another. B2B is the sale of products or services provided by one business and is intended for other businesses, not to consumers. For example, you run a business that sells groceries and you sell to restaurants or culinary businesses. This is what is called B2B because your business or service is for other companies, not directly to individuals or groups.
In contrast to Business to Business, Business to Customer is a business that provides services or sales of goods or services to individual consumers or groups directly. In other words, this type of business is directly related to consumers, not companies or other businesses. For example, you have a grocery business. When you sell goods to individual consumers, it means your business is B2C. However, if you sell large quantities of groceries to other businesses, your business is B2B. In general, almost all B2C products can become B2B products. Whereas B2B products are used very little by individual consumers directly.
Differences in B2B and B2C Marketing Strategies
Business to Business marketing strategy is how you can make prospective customers trust the quality of your brand. Therefore, you must strengthen the quality of your business. How the quality of the product, quality of service, to communicate with your customers must continue to be improved. When your customers are other businesses or companies, then you must build strong relationships in this business sector.
B2B and B2C businesses have very different target marketing. B2C has individual or group marketing targets, while Business to Business has target marketing for other businesses or companies. Another difference is the purchasing ability between B2C and B2B is very different. For B2C you cannot predict the purchasing power of potential customers, but for B2B you can have prospective customers who have very high purchasing power. This is because your target marketing is a company or another business that is already large and of course has quite a lot of money.
In the B2C business model, you can create promotions on social media and create websites. In addition to social media and websites, you can also make advertising marketing strategies in print or brochure media. This method will be very useful when you will enter a new market. As for B2B target marketing, business people or companies will not be immediately interested in the products you advertise on the internet or brochures. When the volume of purchases made is very high, the business person or company will see in detail what kind of products and brands you have, how the track record, how the testimony of other customers and other details.
Difference between B2B and B2C Companies
B2B companies are closer to the industrial sector, while B2C is more focused on users or customers. Digital marketing approaches in the two types of companies will be different, which is related to the character of digital marketing channels. Like B2C, it might be more suitable to use Facebook, Instagram, Twitter, and Youtube to get audience reach. Whereas Business to Business companies can process inbound to the targets they have set to then get quality prospects ( qualified-leads ). Based on this, it can be understood the difference between the two:
- B2C is more customer-centric, while Business to Business is more industry-focused.
- The social media approach differs between the two types of businesses, so it must be adjusted to each of the characteristics of social media.
- The Business to Business content approach will focus more on education. As well as focusing on what can bring solutions to get Trust and Call To Action.
- Solutions and experience references are more important in Business to Business than in B2C.
- Social public relations are not needed in Business to Business types.
However, B2C Social Promotion is an inseparable part of the overall marketing program.
Equation of the Basic Approach
Of the differences between types of Business to Business and Business to Customer, some basic approaches are the same. Among them are targeting, content creation, information dissemination, and monitoring. Therefore, the promotion budget in a company will be large at the beginning and will start to shrink after the initial breakthrough gets a positive conversion.
Types of Business to Business (B2B) emphasize their focus on the quality of the products and services offered. The trust of customers is a top priority because the type of Business to Business attaches importance to the concept of ongoing cooperation (retainer) with its customers.
Unlike Business to Business, the Business to Consumer (B2C) type of business must prioritize a wide network for each line of business, from marketing to product distribution because the more customers the better for their business.
By reading the information above, it is expected that as an entrepreneur you can compare two types of businesses so you can create the right marketing strategy.