B2b (business to business): meaning, examples + difference b2c

Introduction

In the B2B market, success is about more than a good product. It's about the ability to offer customers real value, build long-term relationships and strengthen your distinctiveness. Digitalization is crucial here for SME entrepreneurs who want to grow. In this article, as a b2b marketing agency, we explain what b2b is, how it differs from b2c and how to adapt marketing to a b2b market.

What is b2b?

B2b is an abbreviation from economics that stands for business to business.

According to Wright (2004), B2b is best described as a market where a company sells products and services to other companies, which it buys for its own use or resale.

According to Wright, the b2b market operates on both a national and global level.

Whereas b2b (business-to-business) companies focus on the business market, b2c (business-to-consumer) companies sell products or services to consumers.

Examples of b2b companies

A concept like b2b becomes clearer through a number of practical examples.

• Wholesalers: Think Makro, Hanos and Sligro but also lesser-known wholesalers. You cannot go here as an ordinary consumer for your groceries. A company buys products here that it needs to serve its own customers.
• Enterprise software: SAP, Exact, AFAS, Hubspot. Software that is of no use to you as a consumer at all.
• Machinery producers: ASML, John Deere, DAF.

What is b2b marketing?

With b2b marketing, the target audience needs to be approached in a different way than with b2c, which requires a targeted b2b marketing approach. Online marketing is used for both, although there are still many opportunities within online marketing for b2b companies.

To reach companies in the business market, a b2b marketing strategy will need to be chosen. With the right strategy, a company will sell its products and/or services to other companies. A b2b marketing strategy usually targets a smaller customer base compared to b2c. This leaves room for more specialization in the marketing strategy and allows you to build good long-term relationships with customers.

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B2b target audience

The target audience of b2b companies differs greatly from that of b2c companies. The target audience in b2b marketing tends to be the decision maker(s) and not just the end user. It often involves a product or service which is seen as an investment and is relatively expensive. There are multiple stakeholders in the purchase, which makes the decision process longer. The decision to purchase or collaborate is therefore rational and less emotional. For b2b marketers, it is very important to outline an accurate customer profile in order to properly address the needs and considerations of the company and the decision maker. Reliability, professionalism, knowledge and the solution orientation of b2b companies are very important for the business decision maker.

B2b products and services

B2b businesses can offer a variety of products and services. They may be business services, such as the services of accountants, marketing agencies and website developers. Office supplies, cleaning supplies, raw materials or retail products. B2b businesses offer other businesses services and products that help them keep their business running and increase sales and profitability.

B2b companies target the business market; other companies. They provide services or products that allow companies to reduce costs or increase sales. The b2b products or services affect a company's profitability. Usually the decision maker is not - or not the only - end user. There are more interested parties in the purchase. This makes the decision process a lot more rational and less emotional. The buying process is relatively long with b2b services and products. Online marketing offers more and more opportunities for b2b companies to distinguish themselves, gain trust and retain (loyal) customers.

Resources

Bangia, M., Harrison, L., Plotkin, L.P. & Piwonski, K. (2022, January 26). Busting the five biggest B2B e-commerce myths. McKinsey & Company. https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/busting-the-five-biggest-b2b-e-commerce-myths

Miller, M. (2012). B2B digital marketing: Using the web to market directly to businesses. Que publishing.

Rėklaitis, K., & Pilelienė, L. (2019). Principle differences between B2B and B2C marketing communication processes. Organizacijø Vadyba: Sisteminiai Tyrimai, (81), 73-86.

Wright, R. (2004). Business-to-business Marketing: A Step-by-step Guide. Pearson Education.