Differences Between B2B and B2C in Terms of B2B Marketing Strategies

In: Business and Management

Submitted By elaine1929
Words 1789
Pages 8
Business-to-business (B2B) markets products or services to commercial businesses, government bodies and institutions for various purposes including for resale, commercial use or for incorporation in their products or services (Hutt & Speh, 2010). Business-to-consumer (B2C) markets products or services to individual buyers for their own personal consumption (Hutt & Speh, 2010). Although both are selling products and services, there are differences that distinguishes these two types of market from each other, especially when it comes to formulating strategies and marketing activities. Therefore, I agree with the statement.

In general B2B is relationship-driven whereas B2C is product-driven. B2B focuses on relationship marketing efforts by retaining loyalty and meeting the needs of buyers while B2C focuses on developing products that fit into specific target markets rather than based on buyer needs. One of the difference is the market structure of both markets. B2B market is niche size. There are relatively few buyers however those buyers are large buyers. B2C market is large in size but consists of small buyers. Also, B2C market is pure competition whereby there are many sellers and buyers in the market. Due to the target market being a mass market, a single buyer or seller does not have much effect on the market. However, the niche size B2B market is oligopolistic competition with very few sellers, hence they are sensitive to each other’s pricing and marketing strategies. Therefore, B2C can afford to lose buyers as the loss is much lower than B2B, thus explains the different drives. For example in the information technology (IT) industry, the chosen company, Dell Inc. (Dell) develops, sells and repairs computers and related products and services to both B2B and B2C markets. A B2C buyer might purchase one unit of computer but a B2B buyer might purchase a…...

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