1.

Discrepancies between B2B and B2C marketing

Marketing encompasses a wide range of actions with the ultimate goal of increasing sales. B2B and B2C
are two business marketing models in which sales are the end-result; however the two business models
are not the same. B2B stands for Business to Business, and as the name implies, it is a type of commercial
transaction in which two business houses buy and sell items, such as one entity supplying material to
another for production, or another firm offering services to another. Business to Consumer (B2C) is
another paradigm in which a company sells its products and services to the final consumer. 

1.1 Customer Relationship

B2B: Builds Personal Relationship

Building personal relationships that produce long-term business is the goal of B2B marketing and lead
creation. As a result, connection building is critical in B2B marketing, particularly during the purchase cycle.
It allows you the chance to demonstrate what kind of business practices, ethics, and morals you adhere to.
This ability to interact with your target audience allows you to differentiate your company or your client's
company from the competition while also allowing you to create your brand. Lead generation is a significant
priority for B2B companies. Because recurring and referral business is so important, building these human
ties may make or ruin a company. Today internet plays a significant role in building relationship, 94 percent
of buyers read online reviews, according to G2Crowd. A poor review can be catastrophic because the
majority of buyers read reviews.

B2C: Builds Transactional relationship

B2C firms seek efficiency and, as a result, spend less time getting to know their customers, resulting in a
relationship that is primarily transactional. The marketing approach focuses on selling the product, and the
majority of the time is spent ensuring that high-quality products are delivered as soon as feasible.

Firms
Production
Purchase
Suppliers Marketing Customers
B2B B2C
R&D
Finance
1.2 Key differences
i. B2B refers to a business model in which transactions are made between companies. Another business
strategy is B2C, in which a company sells things directly to the end user.

ii. The customer in B2B is a business entity, whereas the customer in B2C is a consumer.

iii. B2B is concerned with the interaction with business entities, whereas B2C is concerned with the product.

iv. B2C is where advertising and promotion establish brand value, whereas B2B brand value is created on
the basis of trust and personal relationships between corporate entities.

1.3 Comparison chart

See Exhibit – 1

1.4 Conclusion

When the two business models are combined, they encompass the entire business process. B2B is mostly
for businesses that add value to the items they offer to other businesses. When we talk about B2C, we're
talking about businesses who sell their products directly to consumers rather than reselling them.

Exhibit -1: Comparison between B2b and B2C

Basis of Comparison B2B B2C

Meaning Business to Business, or B2B, Business to Consumer, or B2C,
refers to the sale of goods and refers to a transaction in which a
services between two company offers goods and
businesses. services to a customer.
Customer Company End user
Focus Relationship Product
Quantity of sales Large Small
Relationship Supplier - Manufacturer Retailer - Consumer
Manufacturer - Wholesaler
Wholesaler - Retailer
Relationship Horizon Long Term Short Term
Transaction Cycle Lengthy Short
Buying Decision Planned and Logical, based on Emotional, based on want and
needs. desire.
Brand value creation Trust and Mutual Relationship Advertising and Promotion
References
1. How to Get More Customer Reviews, Testimonials, and Social Proof, Johanna Rivard on September 24,
2018

https://marketinginsidergroup.com/content-marketing/how-to-get-more-customer-reviews-testimonials-and-
social-proof-infographic/

2. Industrial marketing

2.1 Definition

Market for industrial goods is made up of users who are members of groups that purchase goods and
services in order to create additional items. The manufacturer in this market is the one who purchases, for
example, a collection of chemical substances from which it will generate fertilizers for the agricultural
market or for individuals who will use it in their gardens.

The term "industrial user" refers to a person who buys products from a certain market. There is a
conductive climate for the development of this sector on a broad scale. The products sold are mass-
produced in large quantities, but only a small number of people buy them. Manufacturers, in reality,
consider all of their users who work in the industrial environment. Purchases are made to broaden the
range of goods and services available, resale them to other clients, and carry out business operations.
Because of the large number of products on the market, businesses rely on one another to make them. As
a result, the industrial market, while competitive, can encourage cooperation because the same object
requires diverse types of raw materials to function.

2.2 Characteristics

i. Limited Buyers

The industrial market does not cater to a big number of buyers, as one might expect, but rather to the most
suited buyers who can put the product to immediate use. As a result, clients are carefully vetted and
strategically placed in order to maximize sales.

ii. Geographic distribution

It tends to cluster in specific urban or rural locations. The industrial market isn't everywhere; it's
concentrated in regions where there's a lot of production going on, which necessitates a lot of people
moving around the plant.

iii. Vision

The industrial market isn't interested in meeting users' immediate requirements; instead, he wants to think
ahead, so he sets long-term plans that aren't affected by price fluctuations. As a result, in order to avoid
being left behind, this type of market is constantly renewing and reinventing its products.

iv. Reduced impact on demand

In particular, in the final demand. The industrial market is unique in that it has little impact over what users
desire to buy because they already have certain standards that must be met by the producer.

v. Higher Purchasing Power

The industrial market is able to concentrate a large amount of purchasing power due to the fact that it has a
large budget, allowing them to acquire more for less, as is the case with wholesalers.

2.3 Segments

The industrial market has various segments; however they are generally divided into four categories.

i. Agriculture Market
ii. Reseller Market
iii. Market in the official sector
iv. Market of non-profit companies

2.4 Industrial Market Example

Based on the foregoing, the industrial market is quite vast, which translates to a wide reach.This can be
seen in a variety of industries, including mining, fishing, agriculture, construction, transportation, wholesale
and retail trade, real estate, miscellaneous services, government bureaucracy, and non-profit
organizations.

References
i. Hague, Paul N. (1985). The Industrial Market Research Handbook. London: Kogan Page Ltd.

ii. Scherer, Frederic M. (1990). Industrial Market Structure and Economic Performance, 3rd edition. Boston:
Houghton Mifflin Company.

Iii. (1984). How to Segment Industrial Markets. Massachusetts, United States: Harvard Business Review.
Retrieved from hbr.org.

3. Nature of Organizational Buying

3.1 Definition

Organizational Buying Behavior is a complex decision-making and communication process that involves
organizational buyers selecting and procuring products and services.

Organization purchasers are individuals, businesses, or government agencies who make purchases of raw
materials, products and services, components, or finished commodities.

Consumers – Purchase products for personal consumption

Industrial Buyers – Purchase products on behalf of their business or organization

Because organizational or industrial buyers are driven or influenced more by profit objectives and less by
personal considerations, it is necessary to understand organizational buyers' buying behavior and design
marketing techniques for them that are distinct from those for ordinary consumers.

The Buying Centre, which may consist of top management, members of the procurement committee, or any
other department, is usually in charge of making purchasing decisions in a business.

3.2 Nature / Characteristics of organizational buying behavior

Every organization is distinct - because they have diverse organizational structures, cultures, values,
objectives, and resources. As a result, they have distinct requirements and demands, as well as distinct
purchasing habits. There is a considerable time lag between efforts and outcomes - The period between a
purchase choice and a sales transaction is shorter in the individual buying process than in industrial buying.
This is due to the additional formalities and procedures required in the organizational purchasing process.
Requesting quotes, assessing tenders, making bulk orders, and so on.

It is both a rational and an emotional activity — the presence of humans in the purchasing process adds an
emotional component to the process. An industrial customer may choose a dealer based on his personal or
political affiliation or previous experience with the dealer, but he may choose the amount and quality of a
product based on established organization rules.

It is a formal action - When an organization buys anything, the buyer and seller sign a formal contract. It is
a formal action that requires the buyer to follow the organization's rules and processes when making a
purchase decision, such as the kind, quality, quantity, payment conditions, delivery time, and so on.

Other characteristics of organization buying:

i. There are few industrial buyers and many individual buyers

ii. Organization buyers usually buy in bulk
iii. Role of middlemen is reduced as the buyers buy directly in bulk from manufacturers.
iv. Organizations generally have an inelastic demand