There is no doubt that emerging models for Internet strategies are for both B2B and B2C operations, but there are fundamental differences that exist between implementing the real B2B and B2C strategies. B2B strategies and supplier web sites are driven by partner intermediary sites where orders are placed by pre-established means. The focus of B2B marketing is upon building long lasting relationships with the consumers and business partners with an aim to maximize the value of the relationship.
It is a small scale target market with multiple buying processes and longer sales cycles where brand identity is the name given to personal relationships with other partners, or we can say that brand image is created on behalf of maintaining relationships. Moreover, there are situations where brand remains no longer of value to business marketing. These situations arise whenever competition gets fierce among B2B marketing. There is no room in the B2B marketing for emotional purchasing, and therefore, rational buying decision is made on the basis of business values.
On the other hand, B2C is entirely product driven with emphasis on the value of customer transaction. Unlike B2B, it is large scale and allow single step buying process with shorter sales cycle. Brand identity in B2C is difficult to create and unlike B2B, where there is no significance of physical appearance of website, B2C depends upon imagery and physical presentation. The more attractive the site is, the more it would lure the customers. Therefore, brand identity is created and is vital for successful consumer market in the long run, since it is entirely based on emotional status and pricing.
Database Direct Marketing Difference
B2B businesses maintain their online and offline records of customers in thousands, whereas B2C consumer markets are measurable in millions. There is also a difference in the price value since each B2B customer is valued more than B2C consumer. Particularly if we talk about high-technology markets, customers and suppliers are bound to exchange detailed information openly about product design, operation and service. Because of a longer duration time period and timescale that compares and evaluates supplier, a B2B sets the priority on selling a broader range of products or services to existing customers rather than expanding the total volume of customers.
Knowledge Based Selling
A B2B company feels the need to focus on training its business customers on how to use the product most effectively and at times even convince them that they have a need for the product at all. An example is that of Dell Computers web site which is managed within an extranet and is customized according to the needs of individual business customers. The composition of the B2B marketing communications mix is different from B2C in the sense that it likely places more emphasis on personal selling than on advertising and promotion. High-value B2B purchases are informal in nature and unlikely to be actually processed online.
Instead, the online presence plays a significant part in aiding the purchase decision by providing easy access steps to technical information or support rather than transactional capability. Since Internet access is more convenient in the B2B sector as compared to B2C, therefore, differences determine the relative degree of intersection between online and offline communications in the two sectors.
Significance of ‘Product’
Product is profound in determining customer benefit in the 4Cs which is not only applicable to the businesses but to the consumers as well. In fact, it would be better to claim that customers do not buy ‘products’ as such, but in the name of products they intend to buy solutions to their problems. This may illustrate a company selling the ‘product’ of an 8-mm drill bit. The customer looks for the 8-mm holes and not the features embedded in the drill such as the grade of steel or material used.
The customer purchases it for solving his problem that is drilling through plaster. The same is the case with B2C where partner firms seek solution to their problems like increasing their online sales volume. Therefore, when selling B2C the intention turns out to be different (Harris & Dennis, 2002, p. 228).
Most campaigns in business marketing target the minimum firms to generation of an inquiry that is subsequently qualified to a lead. However, in consumer marketing it is noticed what goes along is only a small fraction of communications that lead generation while the majority emphasizes direct sale. This creates a lot of difference when it comes to placing offers that are much different than those used in consumer programs. Sellers in B2B e-marketplaces focus on attracting buyers for which B2B marketplaces not only offer advantages but also substantiate some of the Internet’s least attractive tendencies (Kajuter et al, 2001).
Online marketplaces matches sellers and buyers while taking costs out of the supply-and-demand chain and increase the market’s efficiency. Because of increased competition, the customers tend to focus on getting the best price for which sellers face fierce pressures to standardize products. B2B alleviates any brand-conscious concept they might have while B2C companies usually spend on branding and high-impact public relations (Kumar, 2001). B2C spend more on innovative techniques such as viral and affiliate marketing as compared to B2B.
References
Harris Lisa & Dennis Charles. (2002). Marketing the E-Business: Routledge: New York.
Kajuter Henrik, Baumgartner Thomas & Van Andrea. (2001). A Seller’s Guide to B2B Markets. The McKinsey Quarterly, 37.
Kumar Anil. (2001). Virtually Solvent. The McKinsey Quarterly, 4.