B2B and B2C marketing channels have different approaches. Therefore, a brand might use a B2B approach or B2C depending on its strengths, opportunities, or industry type. Remember, B2B refers to selling goods to other organizations destined for their operations or resale. In contrast, B2C refers to selling directly to a final consumer for personal use.
In this post I will discuss the players on the B2B landscape and the differences between B2B and B2C marketing.
The four big players in the B2B marketing landscape
There are 4 main players in the B2B landscape. They are Manufacturers, trade agents, government, and the institutions that make our society.
Firstly, manufacturers are any business that produces a product or service. Consequently, they require inputs for production, such as raw materials, components, or machines, to name a few. At the same time, they also require goods for their day to day operations like office supplies, furniture, software, among others.
Secondly, trade includes wholesalers and retailers like Publix, Walmart, or other distributors that profit on reselling goods. They also can be targeted by B2B companies for goods in their day to day operations.
Thirdly, we have government developing infrastructure, military, public services, among others. For instance, some companies make a living by selling directly to the government, for example, a health company selling to the public health sector treatments or medical devices.
Finally, we have institutions like, for example, universities, non-profits organizations, and churches. These institutions can be private or public and require the B2B market to perform their activities.
Differences in B2B and B2C Marketing
After considering the players on the B2B landscape and knowing that B2C is made up of individual consumers, let’s look at the other differences in approach. There are three additional main differences between B2B and B2C Marketing: the Decision-making process, the timing of the purchase, and pricing.
To begin, the decision-making process on an organization might require different levels of approval, especially the higher the value of expense, the more approvals are needed. On the other hand, B2C only requires the approval of the buyer.
Next, we have timing. For instance, in this step, we can make an easy example. If you are feeling hungry, you recognize the need to get food, which is fast. On the other hand, an organization might have a problem and not even be aware of it. After careful review and analysis, the organization might decide to request a solution to their problems. This can take weeks or months.
Finally, on pricing, the main difference comes from the large volume in orders at B2B. While this segment gets discounts because of large quantities and has larger billings per purchase, B2C has a higher cost per good, but low volume.
I hope this post helps you understand the differences between B2B and B2C channel marketing. If you liked this content, please check out my last post on channel marketing.