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From working many years in BTB, I found that there are some immutable rules and distinctions that highlight the differences. Marketers trying to move adroitly between these two areas find themselves with perceptions that do not hold true. Frequently there is a gap in direct marketers' understanding of the differences between issues faced in consumer markets and issues in business markets. The following are the most significant differences between the two.
The market size. Consumer markets are measured in the millions, while only a few BTB firms have customer bases in the millions. On the other hand, the dollar value of each customer in business markets is significantly higher than in the consumer market. The buying process. In the business market the buying process is much longer and at times involves many people, from individuals who specify to purchasing agents. It is not unusual to have a six- to nine-month buying cycle involving five to 10 people as both decision influencers and decision makers.
The selling process.
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In a corollary to the buying process, the selling process for business markets is also vastly different from that of consumer markets. In addition to highly paid field salespeople in business markets, there are frequently distributors, business partners or independent representatives who are engaged not only in selling, but also in the fulfillment of products or services. The cost of a sale. As a result of the selling process, the cost of a sale is much higher for business markets.
This is in addition to all the advertising and marketing expenses that may have been spent to generate inquiries and qualify leads. Don't miss out on the latest marketing tips and techniques, delivered right to your inbox. Subscribe today Question Topic: Student Questions. If a company sells products to a multiple retailer a chain of shops , is this BtB or BtC? Thanks for the answer. To continue reading this question and the solution, sign up Daniele, What makes a difference in B2B versus B2C is in who the end customer is, not the sales channel partners.
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The end customer primarily is whose needs you are satisfying, who you design the product for. If you are selling an article of clothing through a distributor to a wholesaler and then to retail chains, it's still a B2C offering because the end user is the consumer, not the businesses in between.
This is not to say that you don't look at the needs of the channel partners too. For instance, in consumer electronics, the packaging is designed to work well with distributors - cartons are recyclable, bar codes are place on the outside of the package and cartons, the size and weight of cartons are designed for certain shelving, etc.
The channel partners can make a difference in sales by not selling the product if you don't meet their needs. In this way, they appear like a "customer. I hope this helps. B2C- selling to end users B2B- selling to businesses who sells your products to end users Hope this helps. Daniele, B2B products are built into another product by the customer.
At the end of the line, someone probably uses the food chain of B2B stuff to build something for a B2C consumer. Circulating Supply. Issue Date.
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