Characteristics of B2B Marketing and differences from B2C
B2B marketing refers to business with companies and organizations. Compared to B2C for general consumers, there are not many marketing methods and know-how on the market. Therefore, they tend to have a difficult image.
In fact, many of the commonly known marketing methods are based on B2C and there are cases where they do not work for B2B. Therefore, it seems that many people are confused about what to do. However, if you firmly grasp the characteristics of B2B as a business, you will naturally see the method you should choose.
I will specifically introduce the characteristics of B2B marketing and the differences from B2C marketing in four points.
Customer Target and Number
The biggest difference between B2B and B2C is the customer. In the case of B2B, the target customers are companies and organizations. Therefore, the absolute number of customers is smaller than that of BtoC, which targets general consumers.
From there, you will be able to narrow down your target according to the products or services you want to sell. It can be said that it is somewhat difficult to acquire new customers, but with the help of effective B2B marketing tools, it can create stable sales by maintaining transactions with customers once acquired.
Decision Method and Key Determinants
B2C and B2B also have different purchasing decisions and determinants.
In the case of B2C, there are many cases where decisions are made impulsively based on dogmatic or personal preference, but in the case of B2B, decisions are made logically based on internal discussions and economic rationality. This, of course, has a significant impact on marketing strategies.
The purpose of B2C purchases is very wide, ranging from “wanting to satisfy the desire to own” and “wanting to experience something” to solving problems in life. In the case of B2B, it is basically focused on problem solving. It is also characterized by a high degree of individuality in products and services that can be used to solve individual problems, and many of which are made-to-order.
Therefore, in marketing, it is necessary to grasp the problems that customers are likely to have, and to successfully appeal how they can be solved with your company’s products and services.
In the case of B2B, the unit price tends to be higher than B2C, and the discussion period as an organization is also required, so the consideration period is often longer.
Depending on the product or service, it will affect the business itself as a company, so the fact that it is not easy to switch is one of the reasons why the consideration period is long.
Reason why B2B Marketing started to Attract Attention
The most important thing in business-to-business transactions is “sales from existing customers”, so B2B marketing has not been given much importance so far.
Meanwhile, B2B marketing has begun to attract attention. This can be said to be the effect of the progress of market globalization in all industries. As trading partners became more fluid, and it became necessary not only to maintain transactions with existing customers, but also to develop new ones, marketing was also required in B2B
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