Target The Right Audience With The Right Strategic Procurement, B2B, B2C Business Approach
One important prerequisite for every business, no matter, what industry you are in is to implement a marketing strategy for all procurement as well as selling your products. The onus should be one that involves the buyers, vendors, and the strategic procurement. B2B relates to business to business and B2C is expandable to business to consume.
What are B2B and B2C business markets:
Small businesses often do not apply any strategic procurement solutions and end up buying inventory stock that is not required in bulk from the retail vendors from where the consumers do their procurement. The manufacturers who produce products which are used in business as well as for domestic purposes thus are likely to engage in B2B, B2C business marketing. However, not all manufacturers deal this way. There are many who either focus only on B2B or on B2C markets since most of the industrial appliances will not be useful in any way at home.
Creates a value chain:
A business that is involved in manufacturing can be an active participant in both B2B, & B2C business markets. They can become a buyer procuring raw material inventory from some vendors. It then starts its manufacturing unit and converts the ingredients to finished products and sells it with a distributor. This starts another chain of B2B marketing as the distributor again goes and sells to the retail outlets from where to reaches the end consumer creating a B2C relationship.
How they differ:
The B2B marketing involves more number of people and can embrace longer timeline. The b2c purchases are based on emotions and lifestyle while the b2b is more organization-centric and based on strategic procurements.
The business to business model involves focus on decisions, strategies, and price. There is always a decision-making group involved with experts from various background- management, finance, technical, operations and similar. They take a decision and put in their recommendations to the board. This is one feature of strategic procurements.
The B2C business owners understand that the best way to appeal to the consumer is being as transparent as possible in their approach.
The b2b customer is different. They already know what they want. If they do not get the information they seek, they just close and walk to the next available alternative. They know they have more options and can get the information with a little browsing.
The B2C business will charge the same price for all the consumers. They procure their needs and settle the invoices instantly through cards or cash. This may not be the same as B2B customers. The price will vary based on quantity and terms agreed upon previously. The customer places their order, the consignment will reach them as per the agreed logistic channel. The invoice goes to various departments before reaching the accounts. The contract can also involve a credit period.
There is a difference between the platforms too. The B2C business dealings are directly from the website where the customers browse for their needs adding items to the shopping cart. B2B transactions can be more complex in nature involving invoices, credit notes, accounting etc.