B2B and B2C Marketing

Questions: 1.What are the advantages and the pitfalls of starting to sell consumer products to both markets- consumers as well as business customers? 2.What are the advantages and the pitfalls of starting to sell business products to both markets- business customers as well as consumers? Answers: Introduction: The aim of the study is to highlight the advantages and pitfalls of B2B and B2C businesses. B2B and B2C business implies business to business model sells where companies sell their products to another business (Ferrell and Hartline 2011). For example, Apple Inc deals with electronic products. The raw materials that are required for the manufacturing purpose are outsourced from other firms. The aim of selling products directly to the consumers, known as business to customers, is a popular means of business and the aim is to generate more profit in the future business practices. 1.Advantages of selling products to business products to business as well as consumers: Business to Business model is the situation where one company sells their products or services to another business entity. This selling amount depends on the order size and the repetition of the order (Winer and Dhar 2011). Keeping the same approach into consideration, many companies actually believe in the conduction of large consumer. The sales cycle also depends on the final purcha decision. Business to consumers refers to the form of business where the products or the service is sold directly to the consumers. In the view point of Blythe (2006), this form of business is very popular because this form of business actually helps in building e-commerce decisions in the most appropriate manner. Example of B2B products: Selling of CRM software: Keeping customer relationship management requires to keep track on the sales lead and to manage with the sales cycles and at the same time determining the cold-calling schedule (Peter and Donnelly 2011). Selling of office equipment: Equipments are sold to the companies who barely wish to upgrade their business activities from the past (Blythe 2006). Selling security and security control hardware: The hardware systems are required in building the management companies, municipalities and universities. It is not possible to sell products to the online channels in comparison to selling it to the private customers. As commented by Ferrell and Hartline (2011), it is easier to approach a single customer as compared to other business sectors. B2B commerce serves many advantages and makes real sense in dealing with customers. Some of the advantages can be explained: New target group of consumers shall incur additional revenue: Carrying out B2B activities will significantly involve addressing the contacts from the business professionals. In a new business group, maintaining a high contact with the consumers is necessary. It is by the means of business to customers, that shall help to pursue more sales opportunities required for future business perspectives. Consumers can be easily be approached in B2B services by using a public catalog (Kotabe and Helsen 2011). This is a better means of attracting more consumers from the available search engines in an online store. In order to gain better revenue and expansion of the business, cross selling and up-selling approach can be used. In addition to this, this particular product is useful enough to attract more consumers in the business activities. Link between cost reduction and long term customer loyalty: In B2B clients are more loyal than B2C commercial activities. Business customers results in the direct connection between the suppliers by mutual agreement (Kotler and Keller 2011). On the other hand, low acquisition cost and a long lasting relationship helps in maintaining relationship with customers. At the same time, the customer loyalty is also strengthened. High transactional value helps in increased purchase: In B2B commercial activities, the shopping carts are bigger because companies believe that buying enormous amount of products adds value to the business activities. This activity in turn increases the transaction value of the business (Kotabe and Helsen 2011). Clear structure with collaborative shopping: In a business, the entire purchasing process is arranged in an organized manner. As it has been evident that the employees focus on the products that have high demand and help to increase the business. It is by this means the expectations of the business are met. Better opportunity to expand: In B2B e-commerce activities, there remains the chance for expansion within a short time. The activity is also beneficial for future operations (Kotler and Keller 2011). Increase of brand awareness: By the means of better distribution channels, the customer awareness prevails in the particular business organization (Winer and Dhar 2011). When a brand is established, this automatically assists in fostering the market range effectively. The activity gets optimized when online business is offered. Personalization of the B2 shops: The leading B2B stores can be more attractive and they can be conceived as intuitive for future purposes. If a professional designing approach is undertaken, it will definitely increase the value of the customers in a better comprehensive manner (Peter and Donnelly 2011). In addition to this, the business customers also help in creating a specific standard for the customers for better future activities. 2. Advantages of selling to consumers to business entities as well as consumers: It has to be consider, selling products to business is difficult task and it requires high contacts with the business professionals. Some of the major examples can be stated here: Small vs. Big: It has to be understood that B2B market consists of specified number of customers. However, the case is not similar in case of B2C, where the business activities are mainly concerned for vast audiences for future business activities (Kotler and Keller 2011). Sales cycle: B2B customers are generally quoted for a long time before the sales to gain better return but the B2C customers reduces the rush time from the major past activities (Kotabe and Helsen 2011). Relationship vs. product: It has been observed that B2B customers always focus in making a good relationship with the clients. Keeping a good relationship will also help in improving the bottom line of the product by improving the support (Lancaster and Massingham 2011). It has to be understood that B2C customers actually focus on the product and the amount to be paid at the same time. Therefore, taking care of the value of the product automatically falls under their business activities. Advertisement styles: Unique and infrequent advertisements help in educating the customers and the marketing strategy also changes (Peter and Donnelly 2011). When the frequency of the advertisement is high, it creates a memorable image in the entire advertising process. Rational Vs Emotional: Often consumers get emotionally attached to the served notice and this makes them ready for an impulsive behavior towards the particular product or service (Winer and Dhar 2011). The consumers also understand that a rational behavior is important because it will lead to saving of money from wasting in the major business activities. With the analysis, it has to be pointed out that it is not easy to convince business professionals and thus, carry out business sales activities throughout (Lancaster and Massingham 2011). It has to be understood that there are major pitfalls in both the models of business activities but in a particular manner. Therefore, it is expected that much information should be gathered prior taking any kind of decision related to business activities. Conclusion: With the detailed analysis, it has been observed that selling products to another business reflects troublesome that selling it to other customers. It is easier to convince consumers, directly or indirectly, than convincing the professional groups of people. In order to generate revenue for the company, it can be recommended to maintain high level contacts with business professionals and other related organizations. Lastly, it can be said that both B2B and B2C models have certain advantages in their respective commercial activities. 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