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B2C and B2B Marketing

B2B, meaning business-to-business, describes transactions done between businesses. An example of a business-to-business transaction is between a wholesaler and a retailer. Inter-business transactions are crucial for a typical supply chain and, therefore, very important for operations. B2B transactions are primarily behind the scenes of the company because they are not dealing with final goods that consumers will purchase. Instead, B2B transactions help the final goods become finished goods. B2C, meaning business-to-consumer or-customer, is a transaction between a business and a customer, usually the purchase of a good or service. Essentially, it is the process of a customer buying a good or service from a business. A difference between B2B and B2C transactions is that there is usually only one B2C transaction, while B2B transactions can be infinite, if that is what it requires to get the necessary intermediate goods to produce the final product.

B2B and B2C marketing are very similar, in that they both involve the sale of goods to a customer of some variety (either a consumer or another business). This type of marketing supports the organization’s sales and improves company profitability.

B2B Marketing

The goal of B2B marketing is to essentially convince another business that working with your business is the best option, based on a number of different factors that your business has to offer.

  1. Requires corporate brand alignment (between the two companies) and applying brand standards across all divisions to ensure standardization.
  2. As business customers are focused on creating shareholder value, the business selling their products must consider revenue-producing benefits of their products and services.
  3. For the target market, B2B marketing concentrates on a niche market (a broader version of a target market).
  4. Promotion requires that the business have extensive knowledge of their segment, so they can determine where to concentrate resources.
  5. Selectively choose distribution channels because they can greatly affect the success of the transaction.

B2C Marketing

The goal of B2C marketing is to convince potential customers that products that your business offers are the best, and will provide a solution to their problem or need.

  1. Requires brand alignment and applying brand standards across all divisions to ensure standardization (on a smaller scale than B2B).
  2. Customers are focused on a good value for the lowest price, so B2C marketing must look at the cost-reducing benefits of their goods or services.
  3. B2C marketing looks at a target market (a group that has specialized needs).
  4. Promotion, like B2B, requires that the business have extensive knowledge of their segment in order to determine where they should concentrate their resources.
  5. Selectively choose distribution channels based on the target segment because the accessibility of the product can greatly affect its success.

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B2B is contemporary shorthand for a longtime sales practice called business-to-business. B2B transactions primarily target companies and other wholesale buyers, while transactions targeting individuals are called B2C, or businesses-to-customer. Many organizations have both B2B and B2C components, but it's not unusual for a company to specialize in B2B services or sales. In fact, the vast majority of products and services sold are considered to be B2B in nature (Pollick, 2010).

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