Nowadays in the world of marketing we have many terms that appear out there, and the terms ” B2B ” and ” B2C ” are two of them. But what is B2B? These two terms (B2B and B2C) will dictate the types of customers you are going to sell, what you will sell, and even, in some ways, how your business operates. In B2B (Business to Business) you will sell to other companies and in B2C (Business to Consumer) you will sell directly to customers.
What is B2B?
According to AbbreviationFinder, the term B2B means “business to business”. B2B refers to companies that sell products or services to other companies, rather than to consumers. Think of B2B as a support company that offers the things that other companies need to succeed or gain an edge over the competition.
This can include all kinds of products and services, from software, office furniture, to security services for buildings and offices. We can also include in this list digital goods, physical products and services. B2B companies offer the raw materials, parts or services that other companies need to boost their profits and sales.
What does B2C mean?
B2B’s counterpart is B2C, which means “business to consumer” which translates into “Business for Consumer” or “Business for Consumer”.
Difference between B2B and B2C
What B2C, other than B2B, as you can imagine, is to sell products, goods and services directly to the end customer for personal use.
A good example of a traditional B2B market is automobile manufacturing. The tires, hoses, batteries and electronics essential for the end product – the vehicle – are often manufactured by different companies and sold to the automobile manufacturer. This manufacturer of Automobiles will then assemble the final product and sell it to the final consumer (B2C).
When you buy a car from a company, you are actually buying parts that were created by dozens, if not hundreds of different companies. As many small transactions result in a large B2C sale, B2B companies tend to experience a high volume of sales. Examples of B2B activity in the real world are abundant and more visible than you can imagine. For example, the cloud-based document storage company Dropbox serves businesses as well as individuals.
The General Electric makes a number of B2C consumer goods, but also supplies parts to other B2B companies. The Xerox is a household name. It sells many products directly to end-users (B2C), but makes billions of dollars providing paper and printing services to companies.
Different Kinds of B2B Business
As we mentioned above, there are different types of B2B businesses. Choosing strategically what you are going to sell and how you are going to sell will directly affect your company and how it will work. For example, local security services will be limited by geographic restrictions until they expand, but if you offer software, it can theoretically be purchased by companies around the world.
Let’s take a look at the different types of B2B, its advantages and disadvantages.
Software Based B2B
Software-based B2B businesses almost always involve software signatures that fulfill the business need. Signatures are usually monthly or yearly.
They can be classified as “products” or “services”, but I include them in their own category because they are usually purchased by companies to replace conventional services of human collaborators.
Examples of B2B-based Software Include companies such as Salesforce , Freshbooks and Hubspot.
When we are dealing with software, customer support MUST be responsive and VERY fast, or your customers can be extremely frustrated.
Imagine if a company suddenly can not accept payments or access the entire customer database because of a software failure? Support for this troubled company must be responsive and responsive to keeping the customer satisfied.
B2B companies focused on software also have to be extremely technologically advanced.
Your website, your tools, and your mobile application will need to be always working perfectly for success.
That means keeping up with the advances in security and technology, which can be very challenging and expensive. Constant updating is a NECESSARY thing when it comes to enterprise software development.
Services Based B2B
There are many B2B based services companies in the market, but this is because the demand for these companies grows every day. Examples include: Telemarketing services, graphic designers, private security and specialist law firms. Service based businesses can exist exclusively online or have a conventional store. However, this will largely be determined by the types of services the company sells.
For example, private security services will need to be a physical store. Lawyers can offer services online, but they need to be familiar with the tax laws and regulations in each area that offer services, which can be tricky. Services are also often needed more than once and generally allow you to build a closer relationship with the customer.
Even if your services are only needed from time to time, customers will likely come back and build a trusting relationship with you. Service-based businesses often have a lower cost overhead than product-based businesses, although they may require specialized software (which can be expensive).
Social media marketing professionals, for example, often need to have a number of tools like enterprise-level social media management software. These softwares can end up becoming a big cost for these B2B businesses.
Products Based B2B
Some B2B companies will focus on selling physical goods that you may have on hand. Product based B2B companies can be exclusively online, have a physical store or both. Product-based B2B businesses often have higher overhead than other businesses. You need to worry about the manufacture, stocking and shipping of products.
Damaged products are another constant concern and can cost a lot. Having said that, there is plenty of room for a good profit margin, as many reputable market companies have proven, you just need to be the best of the best to get those sales.
Company sites allow stakeholders to learn about a company’s products and services and initiate contact. Online product exchange and supply sites allow companies to search for products and services and initiate purchases through ecommerce interfaces. Specialized online directories that provide information about particular business sectors and the products and services they provide also facilitate B2B transactions.
B2B Marketing How To
Imagine a company with 1000 employees … Ever thought that this company needs to provide work material for all these 1000 employees? The manager of this company does not go to the super market every month to buy material for all employees. This would be extremely inefficient for the company. Business-to-business marketing (or B2B marketing, as it is commonly known) involves selling a product or service from one company to another.
B2B marketing techniques are based on the same basic marketing principles for consumers, but the techniques are performed differently. While consumers choose products based not only on price, but on popularity, status, and other emotional triggers, B2B buyers make decisions only in terms of price and profit potential. Finding new ways to promote relationships through social media is currently a hot topic in the B2B marketing world.
Social media platforms facilitated conversations between companies. A survey organized by iModerate showed that companies are more likely to buy from other companies than they follow in social media. B2B companies with technology expertise continually try to find innovative ways to use social media to their advantage.
For example, Cisco Systems, Inc., a leader in network system sales, has launched a campaign introducing a new router exclusively in advertising on social networks. This release was ranked as one of the top five in the company’s history and was $ 100,000 cheaper than the company’s “normal” releases.
The success of B2B does not come from the transmission of a product by radio or television. The success of B2B marketing comes from incorporating your company into the industry and making your product look like a staple.
Make a good B2B Marketing Proven techniques below:
- Hosting informative webinars
- Riding booths at popular industry fairs focus
- Sending newsletters by email, positioning your company as an industry expert
- Maintaining an active and interactive social media presence (mainly in Linkedin)
- Participating in industry networking events and building relationships with buyers
What Type of Audience Are Most Wanted By B2B Marketing
B2B marketers generally focus on four broad categories:
- Companies that use their products, such as construction companies that buy steel sheets to use on buildings.
- Government agencies, the biggest target and consumer of B2B marketing.
- Day-to-day institutions and companies such as hospitals, academies, schools and shopping centers
- Companies that revert and resell goods to consumers, such as brokers and wholesalers
A B2B marketer can effectively put your product or service in the right hands, positioning your offer in an exciting way, understanding customer needs, and proposing the right solutions to match the two products.