Business-to-Business Marketing Versus Business-to-Consumer - Essay Example

Business-to Business (B2B) marketing versus Business-to-Consumer (B2C) Marketing is a complex but simple phenomenon.It is an attempt to attract the attention of a potential buyer to an item on display. Marketing gives a business the necessary push to move on. Any company has the ability or capability to produce a service or good. However, without marketing they cannot convince the consumers to buy the produced products. The role of marketing emerges in the fact that it is impossible to makes sales without marketing. According to the public eye, marketing remains to be marketing irrespective of the fact that it targets different segments of the population. In business today, a business can employ in its sales segment two approaches. It can either use the Business-to Business (B2B) marketing or Business-to-Consumer (B2C) marketing. Individuals tend to think that since the product is developing sales, it does not matter if the buyer is an individual or a company. However, things are not this simple. Great differences exist between these two concepts in contexts of time spans, buying processes, targeting of segments, and management of relationships, market strategies, purchases, and financial goals among others (Lilien 2012). The essay will analyze these pints in detail. However, it is crucial to understand the basics of the B2C and B2B marketing first. Today we live in a world that grows continuously. This leads business practices to evolve to keep up with the changing dynamics. The terms B2B and B2C underwent initial development to show the variation in internet commerce firms that sold primarily to individuals and to those who sold to businesses (Joseph 2008). The businesses receiving the product carried out further sales. As time progressed, the definition grew to incorporate selling to both consumers and businesses directly. For example, a business-to-consumer transaction involves a shoe-retailer selling a pair of shoes or belt to an individual. A business-to-business transaction involves the shoe-producer selling the product to suppliers who then sell it to retailers and so on. In addition, the buying of raw materials like cloth, leather, rubber and lace among others by the manufacturer in order to produce shoes is also a B2B model. Business-to-business model Marketing in businesses involves the activities of individuals or organizations that lead to the sale of their services and goods to other organizations and businesses. These businesses and organizations then proceed to sell the services or goods bought or use them in the producing their own services or commodities as raw materials. The last twenty-five years have marked the research into this field. This field is the business-to-business marketing or industrial marketing. In this field, the products sold are for any other use except personal consumption. In the process of B2B, marketing it is important to note that the sales cycle can take a long period to undergo completion when dealing with big organizations. This is because large businesses are slow in placing firm orders. It is important that the marketing segment of the business receive a core position in the business (Barschel 2007). Clever marketing ensures that they obtain sales orders at a faster pace. The customer is very important. He or she should receive treatment as such. Customer relations with other businesses should receive proper maintenance. An approach that “the customer is always right” is highly advisable. Since the purchase, cycle takes a long period. The products and services sold are of high value. The marketing mechanisms employed in this model vary. For example, a business can use the internet to establish campaigns that will attract new business customers. Success in the B2B marketing involves brings the best efforts in the field and a manner of business positioning that puts your business at an easily noticeable position. A business can obtain printed items through assistance from the press in relation to the future objectives and current achievements of the business. If the business product receives acceptance by a certain business, it is prudent to publicize this fact (Khosrow 2001). It is however; important that the business analyze the returns it obtains from marketing to determine the success of the marketing technique. This is through analysis of leading factors, running surveys among others. In conclusion, a good business-to-business marketing model not only helps in the creation of good customer relations and the increment of sales but also in creating a brand name. A brand name is priceless to a business. It creates goodwill for the organization’s name in the market. Business-to-Consumer model Business-to-consumer marketing refers to selling of services and goods to households, individuals or groups of individuals. These people purchase the products or services for their own personal consumption. The individuals could also facilitate usage of the product by other persons. The business-to-consumer marketing tool is important in promoting or advertising of the organizations products to customers. This can occur through business representatives send to malls, shopping centers, town centres, and market sites among others. The business representatives campaign for the product and create awareness about it. The business-to-consumer marketing could also employ door-to-door tactics in advertising. Media advertising is also a good strategy in promotion (Kurtz 2011). The business-to-consumer model generally enables a business to target individual customers directly. An example of this model is energy drink companies like the Red Bull brand. This company puts up stalls in universities and colleges. Their target segment is young adults who are their biggest customers. They know that these individuals consume many of these drinks so they offer them free samples as part of a promotion strategy. Business-to-consumer marketing versus business-to-business marketing The essay will now dive into the different characteristics of the B2B and B2C marketing strategies that contrast each other to show the disparity between the two. The marketing programs for both B2B and B2C are similar. However, their methods of execution, outcome and provision of information differ greatly. Marketing strategies Both models have their own marketing strategy. The purpose of the marketing strategy which is business development and profit yield is similar. However, the styles used to achieve the purpose differ. B2B uses a transactionary path. Its concern lies in the connection between two organizations. A B2B venture to offer the sale of its services or products it must give appropriate attention to the marketing programs in place. On the other hand, a B2C style helps the organization acquire a reach into the required target segment and market their products effectively. The B2B marketing programs must undergo designing that facilitate the achievement and fulfillment of the goals and specifications whether corporate or operational that the target consumers (other organizations) have. On the contrary, a B2C programs has to comprehend and empathize with the perceptions, emotions, aspirations and desires of their current and potentials customers. It is necessary to develop a strategy that will create awareness about the product among the purchaser and will attract them to purchase the products (Ellis 2011). An example of a B2C marketing strategy is the brand Kellogg. It has a strategy that aims to target various segments on age basis. It has therefore come up with products that align with the tastes, preferences and needs of the customers that belong to those various age groups. For small children it has frosties. For healthy products, that mothers are likely to approve it has raisin wheat. It also has a k-special brand for those with strict diets. Kellogg has other numerous breakfasts and snack bars for its customers. It is crucial to point out that the core difference between B2C and B2B marketing is that their target base comprises of different customers. The consumer of a B2B marketing style in simple terms is “other organizations”. This implies that the clients in this model are few. They however, purchase larger volumes of the services or commodities (Barschel 2007). The B2B marketing exceptionality affects the sales of the products profoundly in this case. This makes the marketing mix more complex. On the other hand, the B2C marketing has a consumer who is an individual. This individual receives influence from his own colleagues, friends and family although at the end becomes the sole purchaser (Napier 2006). Some people argue that for both cases the individuals and organizations are finally both customers at the end of the transaction. The cross argument is that business purchasers are individuals who buy goods for their company. They are not personally involved or emotionally attached while transacting. In contrast, the personal consumer buys goods or services for himself or herself for self-consumption. Therefore, the element of emotion is present in the purchasing process. Another argument lied in the placement of orders. B2B orders are large depending on the size and scale of the organization whereas B2C orders are often to but a single object or a limited number of the items. Payment done in a B2B model is mainly through the credit format while in a B2C model it occurs mainly through cash, credit card or cheque (Sheehan 2011). The buying process The B2C model has a different buying process from the B2C marketing model. In the B2B model, the buying process has a locus on a particular small target segment. It also follows a process, which involves eight multi-step stages. This include identification of the problem, a need description, specification of the product, a search for a supplier, soliciting a proposal, supplier selection, routine specification of the order and finally a performance overview (Kotler 2006). These stages receive theoretical mentioning. In a more practical sense, some of the steps may be undergo repetition, modification or skipping. This is in line with the need or situation at the time. An example of a B2C buying process is online shopping. Here individuals search for a variety of products; they then compare the products alongside their prices and then commit themselves to purchase the product. In contrast, the B2B buying puts its focus on ample target segments. It is one-step process with a short cycle of sales. It involves the customer identifying what they need, investigating the available products in the market that can satisfy their need, all available alternatives, making the buy decision and finally evaluate their feeling after concluding the process. This is much less complicated process. The B2B buyer buying characteristics contrast those of the B2C client. The business buyer has a cultured and refined taste. He or she is very sophisticated and quite-versed with the details of the products available at times better then the company’s sales representative. He or she has carried out an elaborate research before making the decision to purchase the service or product under offer. This is because the purchase of product or service affects the buyer’s profit margin profoundly (Khosrow 2001). The buyer does not mind paying extra for the service or good as long as this ensures a high quality product. The B2B buyer in contrast has a general interest of acquiring the product at the cheapest price. This buyer will research on the different rates offered at various places and will purchase at the one with the best or lowest price offer. Customer service In some cases even after a thorough research, customers will prefer to obtain their goods from a particular retail outlet. Customer service is crucial in any business element. If not afforded the necessary care it can result to all marketing efforts being unsuccessful. In B2B, the customer service will commence on the day discussions on a deal start while in B2C the customer service is in place to ensure consumers purchase products even if they are more costly (Ellis 2011). This happens to ensure development of consumer loyalty and encourage repetitive purchases. In addition, the B2B buyers prefer to avoid risks. They search for sellers and consultants who are trustworthy. Contrary the B2C consumers are more accommodating about risky products and innovative commodities in comparison to their counterparts. Importance of Branding B2B marketing is has more relationship-driven embodiment while B2C is more of product-driven marketing. B2C marketing has efforts that guide in building and developing strong customer relationships. The brand identity undergoes formulation based on personal relationships. These brands help in product consideration rather than selection. However, brand awareness is not of utmost importance in B2B marketing. The buyers in B2B make rational purchasing decisions based on factors like estimated returns, amount of investment, future prospects and cost reduction among others. In contrast to this, B2C marketing in its product-driven functionality has the objective of maximizing the operation’s value. It creates brand identity on repetition and imagery basis. These brands go a long way in influencing the buyers purchasing decisions. This is because they buy them emotionally based on ease, quality, security and status. This encourages the B2C buyer to remain loyal and spend a little more. For example, B2C consumers will more likely engage in the buying of status brands like Nike, Lexus, BMW, or Rolex although this may cost them more. Marketing goals B2B marketing has a goal to transform potential customers into actual consumers. This happens through investments in educative and awareness programs. These include distribution of informative newsletters, email campaign launches, or development of a webpage with the necessary information about the product. The goal of B2C marketing is to turn shopaholics into customers assertively and consistently. This occurs through enchanting offers, gift vouchers, discount coupons and attractive posters. These activities occur in both stores and online platforms ensuring instant purchase of the product. For example, the objective of a B2B email campaign is to give a prospectus to the web to know more about the products and services on offer. The e-mail has to contain contact data for any offline communications. The landing page has to show information of benefits, features and possible pricing. This marketing step may provide the first step towards a touch campaign integrated for a long period. This may occur through telemarketing, web casts, direct mail or sales representatives who discuss on the business requirements in detail thus moving the prospect up the sales cycle. Supply-chain management Another notable difference lies in the sum of pathways in the chain of supply that a product must go through before reaching the consumer. In B2B, the channels are not many in number but they are larger in comparison to the many minor B2C channels (Lilien 2012). The supply chain in the B2B model is crucial due to factors like delivery of the product, account support and service and strategic flexibility. This is because supply chain issues like lost orders, machine downtime, under stocking create extra costs for the customers. In addition, disparities occur in the integration and technology context. B2B requires integration into their partner’s software to enable billing and even re-supply. In B2C, there are no concerns about this. This is because the consumer will return due to commitment and not convenience. Management of the Relationship theory The marketing relationship theory is the most similar concept in both the B2B and B2C context. Relationship marketing involves an approach that sustains, ascertains and augments the link with the consumers and other shareholders on a long-term basis. Through a good relationship both the B2B and B2C, marketing models should be successful in achieving this goal (Gillin 2011). At certain points in the value-chain, the maintenance of good relationships is quite essential. In B2B, respect between two organizations is of utmost importance in the marketing policy. In B2C, the marketing policy should incorporate trust, which is essential to strengthen the relationship between firms and customers. For example, companies like Amazon and Best Buy have good trustful merchandising programs that keep their customers happy thus repetitive customers. In B2B the marketing relationship involves not just delivering for the buyer but for also for the buyer’s customer. For example, Corus, a British steel company produces pre-coated steel. This Pre-coated steel undergoes purchasing to make household appliances and car parts. Pre-coating ensures that the buyer does not require a paint partition to complete the manufacture. Thus, the end customer obtains an enhanced quality from a more resilient good. Finally, we find that both the B2C and B2B marketing deal with customer behavior. Therefore, the general platform is human behavior. However, as the article has clearly illustrated, B2B and B2C are divergent realms with differing adoptive approaches. The entire essay, has analyzed the main variances between B2C and B2B marketing. It is fascinating how these two concepts although very similar are different. In conclusion, the leading factors that determine what a marketing approach to follow do not in reality concern themselves with whether it is a B2B or B2C. The magnitude lies in the pecuniary risk present, the affiliation character and decision making process intricacy in relation to customers. If this is understandable to marketers then they will likely make the right decisions. Maybe, the secret is in eliminating the distinctions and calling it Business to Customer model. This will incorporate both types of customers: the other businesses and the individual customers. 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