Join Drew Boyd for an in-depth discussion in this video Understanding B2B vs. B2C marketing, part of Marketing Foundations.
In marketing, you'll often hear the terms B2B and B2C. B2B means business to business. That's where your business is selling products and services to other businesses. B2C stands for business to consumer, where you're selling goods and services to everyday people, like you and me. As you begin the marketing planning process, it's important to know the key differences between the two. Keep in mind that the marketing planning process is exactly the same for each.
But how you execute certain steps in the process will vary. Let's explore how. When people buy products and services, they're buying a collection of benefits. And you can categorize those benefits into three types. Functional benefits refer to a product's physical performance. For example, when buying a car, functional benefits include the size of the engine. Passenger seating, or how the car handles. Economic benefits are related to saving money or saving time.
With the car, economic benefits would include the miles per gallon, the annual maintenance costs, or the car's reliability. And finally our emotional benefits. These are related to the psychological feelings you get, when using a product. For a car, it would include things like status, or self-esteem. Perhaps the biggest difference between B2B and B2C marketing is what types of benefits are most important.
For consumers, emotional benefits tend to be most important, while for companies, the economic cost savings and other financial factors will drive their decisions. Let's go back to our car example. When consumers like you and me buy a car, we look for something that matches our personality and taste. We want to feel good in that new car. Once we've satisfied that need, then we make sure we get the functional and economic benefits. But for a company, buying a car for an employee, the situation is completely opposite.
The other key difference is who's involved in the purchasing process. In B2B marketing, companies usually have a purchasing department buy goods and services. The person involved won't be the one who actually consumes the product or service. So they're more logical and unemotional when they make buying decisions. That will affect how you market to them. Consumers, on the other hand, usually buy products for themselves, or for others. They make the buying decisions themselves. Now, they, too, can be quite logical for some purchases, but there's usually an emotional involvement here too.
You'll need to understand these emotions to develop effective marketing strategies. I'll show you how to do that when we discuss the analysis phase, of the planning process, coming up next.
You'll also learn to address tactical challenges and present the plan to get buy-in throughout an organization, from the C-suite to the sales team, as well as use the marketing plan to guide outside agencies and vendors. Finally, you'll learn how to launch the campaign and measure its performance.
- Marketing in an organization
- Assembling the team
- Creating the marketing plan
- Analyzing your products, customers, and market
- Segmenting customers
- Creating a value proposition
- Developing a strategy
- Setting goals
- Setting prices
- Using social media
- Presenting your plan to leadership
- Budgeting your plan
- Measuring success