B2B refers to business to business whereas B2C refers to business to consumers. Key differences between both the marketplaces are marketing tactics, buyers, sales cycles, and purchase intent. Both involve the selling of goods or services but methods and techniques substantially differ.
Let us see how they vary from one another.
Markets of B2C and B2B
B2C companies tend to target more consumers across the wide demographic, psychographic, and class. B2C targets the shopper shopping for the products and services for daily usage – like household goods or clothes for the children.
On the other hand, B2B targets a much more narrow audience. The B2B business targets other business who needs the raw materials or partly finished goods for the products. For example, the company selling the tyres will target the other companies who have the requirement of the tyre.
Selling Cost
The selling cost is much higher when selling to the consumer as they purchase the product for daily need or in less quantity.
Buyers
In B2C the buyer is mainly the end-user of the product and usually purchases the product based on the price and convenience. Whereas in B2B the buyer is mainly the business entities looking for the raw materials and partly finished products.
Decision Making Process
The decision-making process is very different when it comes to making decisions for personal life and business. The customers in both industries need to immediately appeal to your advertisement or they will take a significantly longer time to make a purchase decision.
B2B shoppers take more time in research before purchasing. They will check out the site, third-party reviews, price, and competing options. It’s their business after all, so the risk is high. On the other hand, B2C customers mainly want to know the reviews of the product and its price. Due to the short research process, it can result in immediate purchasing.
