Thursday, 30 August 2007

Marketing: B2B vs B2C

Marketing to businesses and Marketing to consumers, are two different things really, aren't they? To my mind, there are 3 primary differences between B2B and B2C marketing, keeping in mind these could be sweeping generalisations, and may apply only in some cases. Inherently, the B2C business tends to focus on a large number of customers, and the volume/value of each transaction tends to be small, as compared to the B2B business. This tends to be different the following ways:

  • The relative simplicity of the message- In a B2C environment, one tries to influence customers in a very cluttered environment (one ad amongst 15 in that break) – hence the need for a simple message which becomes very important. Hence the entire notion of a USP and the statistical analysis and sampling techniques that sharpen how well it is communicated
  • The size and magnitude of "target audience" the business needs to reach and hence the implications -think about the FMCG business, owing to the fact that it is impossible for this business to physically reach all their customers, so they have figured out the best ways to reach them through other channels- hence advertising- and the specialisation of creating a 15 second or a 30 second ad that will do the job of getting a proportion of the billion customers to buy at the retail store.
  • The relative complexity of the decision making- in a B2B business, we need to figure out the main decision maker, the influencers, the end users etc… in a B2C business, things tend to be relatively simpler.

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