Last month, Paul Gillan (@pgillin) wrote a blog post exploring the differences between B2B and B2C marketing as well as launched his new book, with co-author Eric Schwartzman, Social Marketing to the Business Customer. I read Paul's earlier book The New Influencers a while ago which is why I continue to follow his blog since both have lots of great information and insight. I haven't read this book yet but based on this post I've added it to my reading list. However, I didn't want to wait until I did read it before looking at the differences between B2B and B2C marketing.
In the post, Paul talks about how he came "to realize how really different these two flavors of marketing are" and outlines six major areas of divergence:
- Value-driven decision-making.
- Group consensus.
- “Bet the business” decisions.
- Long-term relationships.
- Knowledgeable buyers.
- Intense need for information.
But, in reviewing the list, I'm not sure I agree they are as different as Paul outlines. There is no doubt that there are differences but I think it's a matter of degree in the areas above rather than absolute. For example, group consensus exists in B2C marketing as for many purchases a couple or a family are involved in the decision. The number of people may be smaller than in B2B but the notion of consensus still exists. And, while you may not "bet the business" on a consumer purchase, most of us still have a budget and going over that or making a poor purchase decision will have repurcussions.
Or, put another way, the priorities may be different in B2C but most of the elements outlined above still exist. For example, value-driven decision-making occurs in the B2C space but there are times and items where this can be thrown out the window because the consumer must have the latest trend or gadget. I'm sure it also happens in the B2B space but to a much lesser extent so they will tend to put value higher on the list than consumers.
It's the size and scope of the sale that makes B2B and B2C marketing different and this is reflected most clearly in the sales cycle which is measured in weeks and months on the B2B side versus minutes or days in the B2C case. Businesses are spending millions on very large purchases which very few consumers can do and it's because of that scope that knowledgeable buyers need more information which in turn drives the length of the sales cycle. Smaller purchases by business, such as office supplies, will be more like a consumer purchase.
Despite the fact, I may not 100% agree with the differences outlined above, Paul's main point was that the tools and tactics must be applied differently. To that point, I totally agree. Many of the tools used by marketers will work in both spaces but they must be used differently and the mix of tools will absolutely change. That's because the audiences are different or at the very least in a different frame of mind.
So are B2B and B2C marketing different? The short answer is Yes but they are also similar in many ways. In the end, it's about knowing your audience and using the tools effectively to reach them that will make your marketing successful in both areas.
There's no question there are areas of overlap. When consumers buy a car or a house their decision process is similar to that which a business uses in making any buying decision. However, such purchases are infrequent, and much of what we buy as consumers is driven by price, habit, taste, impulse or those intangibles like sex appeal. We do consider value insofar as we have a budget to spend, but we make impulse purchases all the time. Well-run businesses rarely do that.
Think of the contrast between successful consumer and business marketing campaigns. Very few of the concepts that work for consumer campaigns would work for businesses. The Old Spice Man is brilliant, but it wouldn't make sense is a B2B context.
Posted by: Pgillin | 03/02/2011 at 07:48 AM
Agreed with impulse purchases which consumers do all the time. However, I still think price, habit, taste and other intangibles influence business purchases more than most would like to admit, especially with smaller companies. As well, I think B2B marketers can learn a lot from consumer campaigns, including the Old Spice one. There is no doubt they would need to be adjusted for the audience but many could be quite effective. As you said, the tools and tactics need to be applied differently.
Posted by: Brendan Ziolo | 03/03/2011 at 09:12 AM
Both sales object in the field is different, although there is overlap but because the ultimate goal, leading to the operation of the different middle inevitable difference is very big. Think of the contrast between successful consumer and business marketing campaigns. Very few of the concepts that work for consumer campaigns would work for businesses. The Old Spice Man is brilliant, but it wouldn't make sense is a B2B context.
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Posted by: Chica | 07/23/2012 at 01:49 AM
You are right. There are many similarities between the two. Most people do consult before making a major buying decision. I think that the only time you will find someone buying something without checking with others at some level, is when the item does not cost much.
If a man wants to buy car parts, he will probably ask another individual where they got the parts they needed. They will also consult others on the brand that they get good value and performance from.
The same applies with someone who is buying a couch or even goods at the supermarket.
Posted by: Linda@6pmcom | 01/27/2013 at 09:53 AM