B2B:

• Relationship driven
• Maximize the value of the relationship
• Small, focused target market
• Multi-step buying process, longer sales cycle
• Brand identity created on personal relationship
• Educational and awareness building activities
• Rational buying decision based on business value

B2C:

• Product driven
• Maximize the value of the transaction
• Large target market
• Single step buying process, shorter sales cycle
• Brand identity created through repetition and imagery
• Merchandising and point of purchase activities
• Emotional buying decision based on status, desire, or price

This weekend I got an email from a graduate student at Virginia Commonwealth University with questions about these comparisons for a project for her marketing class. I’m always glad to help students learning marketing so I sent her the following response to her questions.

What does it mean for B2B marketing to be relationship driven, maximizing the value of the relationship verses B2C marketing being product driven, maximizing the value of the transaction?

The goal of B2B marketing is to maximize the value of the relationship to the prospect through marketing efforts that educate them on value you provide. If done successfully, your marketing activities will result in a relationship built on trust and credibility. Value of the relationship will be determined by what is important to the client.

The goal of B2C marketing is to drive consumers to the product and maximize the value of the transaction through activities that upsell or provide incentives to buy additional products. Relationships between companies and consumers are based on the consumer’s experience during the purchase process. Value of the transaction will be determined by the quality of the experience or the transaction.

What does it mean to create a brand identity based on the personal relationship in B2B verses through repetition and imagery in B2C?

In B2B marketing, the brand is based on your reputation. So although B2B marketers develop brand awareness through marketing efforts, the brand identity is based on how how you treat clients, the quality of the work, how reliable you are, and other factors that provide value to the clients.

In B2C marketing, companies build brands by repeatedly getting the image in front of the consumer. Consumer products need to ensure we see their brand enough times to recognize it and consider it worthy of our purchase.

How has social media changed the landscape of B2B verses B2C marketing?

Social media has effected how brands are perceived across all of marketing, but it is more pronounced in B2C today. Developing relationships with consumers is now more important than ever and consumer marketing needs to understand how user generated content effects their brand and how to leverage new media to help them develop their brand identity and reputation.

Take Amazon as an example. They:

• Provide a purchase experience that encourages you to buy more.
• Build a relationship with you by personalizing your experience and making it extremely easy to do business with them.
• Add value through secure transactions.
• Develop user generated content by encouraging you to rate your purchase experience and the product.

This is all part of social media and how consumers are being influenced by their peers. It’s making B2C marketing more challenging but very interesting too. Will it have the same effect on B2B? Thoughts?