B2b Vs. B2c Marketing Stratigies
B2b Vs. B2c Marketing Stratigies
B2C vs. B2B Marketing Differences
Business-to-business and business-to-consumer electronic commerce models approach marketing strategies differently. Marketing strategies and tactics are important to maximizing the marketing capabilities of an organization to the targeted market. The marketing approach for business-to-business is based on building relationships. While the marketing approach for business-to-consumer is much more aggressive. Although business-to-business and business-to-consumer have different marketing strategies, but they both have a common goal; convert prospects into customers.
The American Marketing Association defines marketing as, Ў§Marketing is an organizational function and set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.ЎЁ(Wikipedia). Marketing is a complex process that requires several steps to accomplish the overall goal. When a company decides which elements it will use, it calls that particular marketing mix its marketing strategy (Schneider).
Lunching a new product, service or idea effectively requires the seller to strategically control the elements of the marketing mix. Selecting a product to market is the first step to a complex launch of the product. A market must exist for the product to have a chance of being successful. More importantly, identifying a target market will maximize the potential customersЎ¦ interest to that specific product. Marketing mix are controllable factors defined by the Ў§four PЎ¦sЎЁ; product, price, promotion and place. An overall marketing strategy must be in palace prior to the planning of the marketing mix.
The Ў§Four PЎ¦sЎЁ are designed to deliver an end product to the consumer at a fair value. The proper mix of product, price, promotion, and place illustrates the tactical approach for retaining a competitive edge on the targeted market. The Ў§Four PЎ¦sЎЁ are general categories of product, price, promotion, and place starting with the letter Ў§PЎЁ. Regardless the model, business-to-business or business-to-consumer, the marketing plan must have a strategic approach before it reaches the consumer. For instance, both models use similar programs; direct marketing, internet marketing, and advertising and public relations (Ezine).
Business-to-business sites focus on the long term relationship. This creates a longer purchasing cycle. For example, Grainger and McMaster-Carr have excellent customer relations. Grainger uses the e-mail to effectively promote their web site rather than promoting sale items. McMaster-Carr will patiently explain, in depth, any question a customer may have on a specific item regardless the complexity. In addition, if a customer is unsure of the previous items purchased Grainger and McMaster-Carr are whiling to spend the extra time tracking the previously purchased items. Granger and McMaster-Carr web sites offer the customer the chance to search for the items that they need, unlike business-to-consumer sites that shove every item in the computer screen. In the end, business-to-business sites are designed with the long-term relationship fundamentals in mind.
Business-to-consumer focuses on a single purchasing process vs. the multiple processes that business-to-business concentrate marketing towards. Business-to-consumer ultimate goal is to change shoppers into buyers as forcefully and constantly as possible (Ezine). One way to achieve this goal is to offer coupons and displays to persuade the customer to buy. For example, Old Navy, Gap, and Banana Republic mail $10 off coupons out to customers monthly. Home Depot offers 15% off all Levolor Blinds and free gift card with any purchase of an LG appliance on their web site (Home). The approach is aimed at the target market.
Marketing a business-to-customer site must capture the attention of the customer instantly. This is accomplished by directly presenting the targeted item at the consumer. For example, these e-mails sent by Costco.com subject titled; Sceptre 42″ LCD HDTV $999.99 After $300 OFF sent March 3, 2007 and More Than $6000 in Savings sent February 26, 2007. Over the years, business-to-consumer companies have realized that coupons alone do not earn loyalty but, having great merchandise and customer service will bring success.
Differences between B2B marketing vs. B2C marketing retrieved from Vista Consulting;
B2B
Relationship driven
Maximize the value of relationship
Small, focused target market
Multi-step buying process,