Difference Between B2B and B2C (With Table)

B2B vs B2C

A lot of budding and enthusiastic students want to make their career in the field of marketing. With avenues to grow in career and better income stability, Marketing has picked up pace in recent times.

This has been possible because everyone has now access to the right education, and there is an abundance of knowledge available from different sources.

As it is rightly said that marketing involves interaction between a buyer and seller followed with a transaction.

BUT do you know that marketing is categorized as B2B and B2C?

Even now in the pace of digital marketing, where all transactions happen over the internet. We cannot sideline B2B and B2C marketing

Both B2B and B2C are part of traditional marketing. It does still exists and companies have aligned different strategies for B2B and B2C.

In B2B marketing, the emphasis is laid on building personal relationships between buyer and seller. Making good relationships with buyers ensures reorder which in turn increases profitability.

In B2C marketing, the emphasis is laid on transactional relationships between buyer and seller. Here the company focusses on increasing sales volume. These are mostly one time transactions, No reorder takes place here.

Therefore, we should keep in mind that both B2B and B2C marketing are different in terms of the relationship involved between buyer and seller.

There are different kinds of buyers in B2B than in B2C. Hence the company follows a different approach while doing B2B Marketing, unlike B2C Marketing.

In this guide, we are covering all the essential details for you to understand the difference between B2B and B2C, so as to help the marketer understand both these traditional marketing channels.


 

Comparison Table Between B2B and B2C (in Tabular Form)

Parameter of ComparisonB2BB2C
DefinitionIn B2B marketing, the emphasis is laid on building personal relationships between buyer and seller. Happens from one business to anotherIn B2C marketing, the emphasis is laid on transactional relationships between buyer and seller. Here transaction happens between business and customer.
BuyerOrganizationEnd Customer
Type of RelationshipPersonalTransactional
TimeThis buying process takes a long time, it is a lengthy procedureThis buying process takes a shorter time, it is a simple procedure
DecisionThe very long decision-making processDecision-making process is short
Brand ImageDepends upon the mutual trust between buyer and sellerIt only depends on the advertisement done by the seller organization.

 

What is B2B?

In B2B marketing, the emphasis is laid on building personal relationships between buyer and seller. B2B marketing involves a transaction between businesses.

In B2B marketing, Seller organizations want to establish a long mutual relationship with the buyer organization, In order to increase repurchase and increase their profitability.

The buying decision process in B2B marketing is quite lengthy. As there are so many stakeholders which are involved in the decision-making process.

Following are some features in B2B marketing;

  1. Increases Profitability for the organization
  2. Ensures a strong mutual relationship with clients
  3. Lengthy decision-making process
  4. The entire supply chain is involved
  5. Customizations can be done based on the needs of clients.

The primary objective of the B2B business is to attract potential customers.

Due to the importance of some existing customers and the businesses that one can generate from references, developing these relationships can prove successful or can even result in the switching of the client to other competitors.

Therefore, it is equally important to also know, that B2B is quite important for any organization who are looking to increase their profitability and increase their customer profitability.

Thus, it is required to understand that B2B marketing becomes important for any organization and proper information should be known about it.

Business 2 Business
Business 2 Business
 

What is B2C?

In B2C marketing, the emphasis is laid on transactional relationships between buyer and seller. B2C marketing involves a transaction between business and customer.

In B2C marketing, Seller organizations donโ€™t want to establish a long mutual relationship with the buyer.

As they are selling to end-user, it is more of a transactional relationship, where the company is looking to sell in volumes.

The buying decision process in B2C marketing is quite short. As only one end-user is involved in the decision-making process.

Following are some features in B2C marketing:

  1. Increases Sales for the organization
  2. No relationship making with clients
  3. Short decision-making process
  4. An entire supply chain is not involved
  5. Customizations cannot be done based on the needs of clients.
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The primary objective of the B2C business is to increase sales volume.

Due to the importance of increasing sales, companies are trying to do aggressive advertising in order to influence a customer mindset.

Therefore, it is equally important to also know, that B2C is quite important for any organization who are looking to increase their sales volume and increase their sales revenue.

Thus, it is required to understand that B2C marketing becomes important for any organization and proper information should be known about it.

B2C operations
B2C operations

Main Differences Between B2B and B2C

Although both these marketing B2B and B2C are types of traditional marketing, both these marketing types are important for an organization.

However, B2B and B2C have a lot of difference with respect to decision making, sales cycle and the relationship with the client.

  1. In B2B, the Decision process is lengthy, but in B2C decision process is short
  2. In B2B, the focus is to acquire clients, but B2C focus is on increasing sales volume.
  3. In B2B reorder takes place, but B2C is transactional.

 

Frequently Asked Questions (FAQ) About B2B and B2C

โœ‹ Which is better B2B or B2C?

Both B2B and B2C are better in their own terms.

The market share for the B2B transactions is greater than that of the B2C, but if you go by the buying trends then the trends are higher in B2C rather than B2B.

โœŒ๏ธ Can you be B2B and B2C at the same time?

The majority of the start-ups of India are trying to run both B2B and B2C at the same time. Many of them have failed because requirements for B2B is different than that of B2C.

๐Ÿ‘‰ What are B2B and B2C examples?

B2B E-Commerce is an online business model that helps the online sales transaction between the two businesses (Bulk order and wholesale transactions).

An example of B2C can be a person buying a pair of shoes from an online website (Retail transactions).

๐Ÿง  Which is a more profitable, B2B or B2C?

B2B generates higher profit when compared to B2C. This is because in B2B you are purchasing and selling in bulk which gives you a lot of profit while in B2C, you need to give discounts.

๐Ÿ‘Š Is Facebook a B2B or B2C?

The Facebook company is more a B2C company rather than B2B company because all the users of Facebook are the consumers itself.

If you are a B2B business, then you should have a Facebook page to use it as a secondary network.

Is Amazon a B2B or B2C?

Amazon is both B2B and B2C. This is because Amazon sells the product online on its website and app to the consumers directly and also caters to the needs of different businesses.

๐Ÿ‘‰ Is B2B harder than B2C?

B2B selling is definitely harder than B2C selling. This is because the B2B customers are more sophisticated and have good knowledge of the product which they are buying.


 

Infographic

B2B vs B2C

 

Learn More With the Help of Videos


 

Conclusion

While both B2B and B2C marketing are quite important for any organization in order to meet their objectives.

These marketing strategies have to be devised separately for customers and businesses. Since the requirement for the business and individual customer varies.

Where in B2B you can do customization based on what the customer wants, as these orders are always bulk orders. B2C focuses on giving some discounts so as to close that transaction.

Since the decision-making process and decision takers are a lot in terms of B2B, the Company needs to have experienced sales team to handle the queries properly.  

Although digital marketing has boomed a lot in the past 5 years, and there is a higher probability that the businesses will shift towards the internet for most of the transactions.

But, B2B and B2C will always remain valid for all business, even though the medium of transaction is shifted.


 

Word Cloud for Difference Between B2B and B2C

The following is a collection of the most used terms in this article on B2B and B2C This should help in recalling related terms as used in this article at a later stage for you.

Difference Between B2B and B2C
Word Cloud for B2B and B2C

 

References

  1. https://www.sciencedirect.com/science/article/pii/S0019850114000492
  2. https://www.ingentaconnect.com/content/mcb/080/2009/00000024/F0020005/art00002
  3. https://halshs.archives-ouvertes.fr/halshs-01157807/document

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