B2B vs B2C Marketing

in this video I would like to highlight and point to some of the differences that are between business to business versus between business to customer marketing well it is very important to understand that these two segments are rather separated and in the first part of the video I am going to highlight the differences that are standing the behaviors or in the characteristics of our customers and the second part of the video is going to be a little bit more advanced and I will go deeper into the marketing end into the implications that we should have in our decision-making so let's begin we have got our table on the left side and we can begin with the number of buyers in the consumer buying coding business to customer we are going to see of course a large number of customers where else on the other hand in business-to-business there will be small number of customers or small number of players in the market the worldís is finally connected with the size of the orders of course when there is a large number of customers they are obviously going to have small size of the orders and on the other hand there is going to be large size of orders in business-to-business marketing or business to business deals and if we move to value of orders we are going to help normally although value of orders in consumer bank as the size of order is small also it is somehow natural if you will have some sort of an examinee we are unable to remember this data think from the up to the down so value of the orders is low and on the other hand there is a high value of orders in organizational buying now if we move to purchase annotation initiation this is a little bit more tricky if you are a customer and you are going to buy some consuming product let's say you are going to pizzeria who will initiate your purchase well it will be just you there will be it will be very unlikely that there will be some organization around you that will make the decision so we can say that it is normally sell in a consumer buying whereas on the other hand in organizational buying it is normally others it can be usually considered as a company itself or maybe some other players in the market that initiate some purchase then we move to level of risk well of course in a consumer buying there is always some risk so we can say the risk is low to medium low to medium and because of the higher complexity and higher size of the orders in organizational buying the risk in business-to-business is going to be we can say medium to high because it is simply higher and if we move to complexity of decisions we are going to have again the very same pattern low to medium if you are a customer and you are going to buy something small simple your decision is not really complex you're either going to buy it or not whereas in organizational buying it is a little bit more complex you are considering more factors such as price reliability of the product so we can say that that the complexity here is medium to high well end and here is also connected the information search for how long or for how many of the information you are going to search when you are going to make some purchase well if you are a consumer you are going to search normally for some short time whereas if you are an organization you are normally going to search for some longer time and finally the most tricky part the evaluating criteria what are the buyers evaluating on what are they construing as important among the products so in a consumer buying there are three things there is a social value or social criteria then there is a ego criteria and also the utility these concepts are slightly more tricky so I would rather move to organizational buying and maybe you can see the differences afterwards better so in organizational buying we also going to have three things and that is going to be price price then there is a value and finally utility so as you can see utility may be found in both cases so the utility or the possibility or the extent to which we can use the product is important in both cases but in organizational buying of course price and the value play more of the importance and if you are interested more in deep into this topic I would recommend you some of my other videos but let's move the second part of this video and it's a little bit more indeed so if we have business to customer time perspective we what kind of purchases are we going to have well those are we can say isolated events isolated events and it is also connected with transactional marketing so we are not focused on some relationship building because usually it is just one purchase you can say whereas on a business-to-business those are some episodes with some ongoing relationships so we have good ongoing relationships if we move to the role of the customer because every time our customer has got some role in the purchase in a business to customer the supplier is active and a consumer is special this is very interesting so we have active supplier and passio consumer and I can I will I will rather move to business-to-business immediately and you will see the difference in a business-to-business we have active customer so we have active customer along with active supplier so this is finally connected with the size of the orders value of the orders if you are going to spend large sum of money of course you are going to be more active we are going to search for more information you're going to evaluate more criteria where else when you are only a customer as an it business to customer deal you are not going to be considered as active if we move to market structure in a business to customer we have got something that we call atomized atomized whereas we have many suppliers independent suppliers and consumers so it is a market with large number of both suppliers and consumers whereas in business-to-business we have a few we have a few both suppliers and customers this is again big tricky concept but you can remember this way few independent suppliers and customers so it is it is a market with low number of players and finally do you need of analysis in business to customer we call it one-sided so one-sided because unit of analysis is said to be either on the consumer or the supplier whereas in business-to-business we are going to help something called dyadic or embedded so that is the interaction between consumer and supplier and this is the difference in business to customer we have either the consumer or the supplier and in business-to-business we have the interaction so these were the main differences between the business-to-business and business-to-consumer marketing

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