B2b sales (business to business) imply the shipment of products or the provision of services to corporate clients. Sales in the b2b market have their own specifics and a number of differences from working in the consumer market.
Differences between b2b and b2c sales
Sales in the b2b market (or sales to corporate clients) have a number of significant differences from b2c sales (sales to end consumers) both in terms of marketing and supply chain.
Sales in b2b markets are often equated with wholesale sales. It is believed that wholesale trade is the prerogative of b2b, and retail is b2c. In reality, one and the same company can combine both of these areas of work. An example is a wholesale base of building materials. She can sell to construction companies or retail stores in large quantities, and sell goods to private buyers who are renovating their apartment. In the first case, we are talking about corporate sales, and in the second - about the consumer segment. At the same time, the wholesale supplier has a different pricing policy for its large customers, who can be offered a significant discount from retail prices.
In fact, the term b2b is broader than the wholesale segment and does not always imply b2b wholesale purchases (over 1 package). The b2b segment also includes suppliers of raw materials and semi-finished products for the production of products for further processing, as well as suppliers of technologically sophisticated equipment, machine tools for business. This includes a wide range of companies that provide accompanying services for business (marketing consulting, advertising services, legal and accounting support, equipment leasing, etc.). A variety of electronic procurement tools can also be classified as b2b.
Thus, b2b sales include the sale of goods and services for professional use or for resale, and b2b - for personal, family use.
Distinctive features of b2b sales
Selling on the b2b market differs from b2c in terms of the purchase goals. If end consumers purchase goods for personal use and prioritize its consumer properties, then in the b2b market, the key is the ability to increase profits when buying a product. Thus, corporate consumers purchase goods in order to be able to earn more. This can be achieved both through the purchase of a cheaper machine for production, the introduction of energy-efficient lighting, and through marketing research to enter new markets.
The ways of making a purchasing decision also differ. Private consumers are often guided by emotional factors under the influence of advertising, or brand loyalty, ease of purchase and their own ideas about quality. In the case of corporate buyers, the main motive is again the opportunity to save and increase profitability. It should be borne in mind that if the concepts of a consumer and a buyer in b2c markets coincide, while in b2b, one person can make a purchase decision for a company. He can also be guided by personal motives when making a decision - for example, friendships and his own preferences.
There are always more private consumers than corporate ones. Therefore, marketing communications with each of them is quite problematic and expensive. Companies operating in consumer markets are focused primarily on mass advertising in the media, the Internet, etc. And in b2b markets, establishing personal contacts with each client is of decisive importance. Therefore, in the corporate marketing segment, they prefer direct marketing, cold calls, personal meetings, presentations at conferences and exhibitions, etc.
