Meaning of B2C Marketing

• A transaction that occurs between a company and a consumer, as opposed to a transaction between companies known as B2B.

• Business that sells products or provides services to end-user consumers.

• Also known as internet retailing or E-trailing

B2C• Product driven

• Maximize the value of the transaction • Large target market

• Single step buying process, shorter sales cycle • Merchandising and point of purchase activities

• Emotional buying decision based on status, desire, or price

B2C Marketing, Why is important?

• Used as the proverbial “grease” in the engine of consumerism for goods or services.

• Those who execute better marketing to their consumers for goods or services with all things being even with the offering win the vast majority of consumer dollars.

• Educates the consumer on how to address their need and desire fulfillments.

Capabilities and functionalities of B2C Model

1. Instantaneous communication • It helps in quick communication between the various

participants of business systems. It also helps to reduce “Time to Market”.

2. Global Access• the products and services offered through the electronic

markets have global reach and give access to larger and new markets.

3. Customization• Electronic markets allows to customize or configure goods

according to user’s need .

4. Increased Availability• Since e-commerce provide access to company’s site

24/7 so there is much greater availability of products.5. De-intermediation • It helps in elimination the middleman, offering

simplified electronic distribution and product differentiation based on customer choice.

6. Collaboration• They facilitate automation of transactions between

electronic enterprises and support real time exchange of information and thus enable collaborative processing.

Types of B2C marketing model

Aggregator Business Model Example

B2C – Content Provider • Known as the traditional media model, B2C marketing for this model has been

heavily based on premium prescription advertising.• The times of India are content providers online.

B2C – Mobile Marketing

• Mobile Marketing via Short Message Service (SMS) or Multi Message Service (MMS) - campaigns can be sent with video, text, and slide shows of promotions• In-Game Mobile Marketing – Ads are

placed in MMS related games being played by consumers. Done as product placement.• IPad Marketing – video marketing that can

sent to a consumers PDA, IPad, and other mobile device

B2C – Social Network (SN)Marketing

• The rise of online SNs has spurred the growth of advertising on social networks.

• Advantages to advertising on SNs include specialization of promotions based on demographic

information provided by the user.

B2C – Word of Mouth Marketing (WOM)

• B2C WOM avenues include email, weblogs, bulletin boards, chat rooms, and instant messenger clients , product review.

Initially thought of as a B2C marketing tool, WOM has

been used by organizations such as McDonalds to win

others over to their product.

Each mom blogs about their experiences with McDonalds and what it means to them

and their families in terms of financially, health, and overall

satisfaction.

B2C conclusion

• With the advent of digital marketing, businesses now have numerous other tools such as mobile marketing that focuses on text messaging, web event marketing, and YouTube based video marketing, which is very vast.

• The only thing we really can conclude about B2C marketing is we are only limited by our imaginations and technology of the time. As technology improves so will our imagination to find ways to brand, position, and promote products.

Business to business

It describes commerce transaction between business, such as between a manufacturer and a wholesalers or between a wholesalers or a retailers.

B2B products and services are sold from one company to another company.

Example: Intel selling microprocessor to dell.

Business to business marketing

Business marketing is the practices of individuals or organisation, including commercial businesses, governments and institutions, facilitating the sale of their products or services to other companies or organisations that either resell them, use them as components in products or services they offer or use them to support their operation.

Sectors of the B2B Market

• Producers• Middlemen• Government units• Non profits

Sectors of the B2B Market

• Producers – includes all manufacturers and service providers; buy goods to use in making other goods or services

• Middlemen – buy goods for resale; includes all retailers and wholesalers (distributors, vendors)

• Government – includes all federal, state, and local governments and govt. agencies

• Nonprofit – includes charities, schools and universities, museums, etc.

B2B Marketing Communications Methodologies

• Positioning Statement• Developing your message• Building a campaign plan• Briefing an agency• Measuring results

B2B Marketing Characteristics

• Sizes and number of Buyers.• Geographic Market Concentration.• Buyer Seller Relationship.• Evaluating international business markets

Categories of B2B Customers

• Commercial enterprisesIndirect channel members and facilitatorsOEMs (original equipment manufacturers)Users = customers

• Governmental organizations• Institutions

Key Features of B2B Product

• Fewer users and larger purchases• Derived demand - esp. for raw materials and

components• Fluctuating demand – 10% change in consumer

demand can lead to more than 10% change in the demand for inputs

• Rational buying decision process– quality, ---• Technical, perceived • Dependability– performance and service

Major Uses of B2B Products

For additional production (e.g., components are combined into subassemblies and become part of the finished product)

For use in operations, but not part of the finished product

For resale

Difference between B2B & B2C marketing

• B2B markets are generally small vertical markets, often niche in size, comprised of a few thousand sales prospects to maybe as large as 1,00,000 prospects.

• B2C markets are typically large broad markets of tens to thousands to millions of sales prospects.

Size of B2B vs. B2C Markets

Sales Process

• B2B sales require consultative selling sometimes from a two-step level sales organization including the seller’s sales force and a distribution sales force.

• B2C sales are usually direct to the consumer or involve a retailer. The sales approach is a traditional product sell of "convincing the consumer" they need the product or service being sold.

Cost of a Sale

• B2B sales are "higher ticket" purchases usually costing from just a few thousand dollars to tens of millions of dollars.

• B2C sales can range in cost from a dollar to a few thousand dollars. Except, for cars and homes.

Purchase Decision

• The decision to purchase in B2B sales is generally driven by need and budgets therefore; it tends to be a very rational decision.

• B2C purchase decisions tend to be made based on want more than need or a budget and therefore are triggered by more emotional decision.

Purchasing Process

• B2B sales typically have a purchasing process that is usually defined in months and the sale is complex, often taking additional months to complete.

• B2C sales have short purchasing periods of anywhere from a few minutes (the impulse buy), to a few days and is a simple sale consummated immediately.

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