To be successful in business, we must know as much as possible about the markets we want to serve. When finding our consumer audience, we test, collect data, re-test, and continuously experiment with our ad targeting and email campaigns.
However, many of us could be selling our product to buyers in B2C and B2B markets. But what are the B2B and B2C markets anyway? B2C is the Business-to-Consumer Market, whereas B2B is the business-to-business market.
These markets are significantly different, and adjusting our marketing to accommodate these two types of buyers is essential. A hilarious Meta ad that draws in Joe Football will not work with the titans of industry.
First, looking at the B2C, or the consumer market, we can see that there are potentially billions of customers. The consumer Market is made up of all individuals who want products or services for personal consumption and have the resources to buy them. It is very important to look at segmenting the buyers into groups so you can advertise effectively, or tailor your product to better meet their needs. Whether we’re looking at age, income level, ethnicity, family size, geographical location, or any other type of segments; data collection is invaluable.
Once you’ve segmented the consumer market, focusing your efforts on those most likely to purchase your product or service is key. Though this market is vast, these buyers tend to make small purchases. Sales in this market are rarely direct unless you have your own store or work a lot of markets and trade shows. Consumer buyers tend to be emotionally driven, and they can respond really well to ads, promotions, and email or social media campaigns.
The buyer here tends to be untrained, so they may not be familiar with the complexities of your product, or your product may be entirely new for them. Therefore, they may require a lot of education on the product or service, how to use it, the components and ingredients, as well as potential benefits or the problems and pain points you could solve for them.
Our B2C consumer is impersonal and uses a very informal buying process, whether it’s an individual just walking past your booth, browsing shelves at the grocery store, or someone at home Googling to find your product. These consumers have many options and can easily buy from multiple sources, so standing out with a clear and recognizable call to action is essential.
In comparison, the B2B market consists of all individuals and organizations that want products to be used to produce other products or sell or rent them to others. This market is considered larger than the consumer market because items are often sold several times before reaching the final consumer.
Marketing strategies for B2B differ significantly from those of the consumer market, and industry buyers have their own decision-making process. Though the B2B Market includes manufacturers, wholesalers, organizations, and governments, it has relatively few buyers in each industry, but the potential sale for each customer could be huge.
Initially, the B2B market can be less work as their buyers tend to be geographically concentrated; they are familiar with the products, your competitors, standard pricing, and other complexities such as technical applications and specifications. So we don’t need to spend the same time educating this buyer on the product or services offered; instead, put that energy into building a relationship. Don’t expect the B2B sale to be finalized quickly, as they often require a lot of personal service, time put in towards establishing a relationship, a personalized package offer, and an expectation of follow-ups or after-sales service.
The B2B buyer is rational. They will consider the total offer carefully and are trained and confident in their position to negotiate. You should expect a much more formal buying process, including buying only from pre-approved vendors, so you may have to sell yourself to others within the organization you are targeting.
So, where do we focus our attention? It’s unlikely that you’ll find these buyers via social or ad campaigns unless you’re targeting a little higher up the chain with something like LinkedIn or ads on Google. The key to successful sales in the B2B market is an excellent reputation within the industry (name recognition doesn’t hurt either). This takes time to build, so patience is vital. Try hosting a networking event or keeping your name at the forefront of your mind with speaking events or podcasts.
Whichever market you are selling in, make your mark, stand out, and don’t be afraid to be loud.
