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

Introduction

Too often, b2b is still seen as the "serious brother" of b2c - rational, businesslike and predictable. But those who really want to make an impact know better. Here, too, it's about offering customers real value, building long-term relationships and strengthening your distinctiveness. Digitalization is crucial here for SME entrepreneurs who want to grow.

In this article, 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 market operates at both national and global levels.

Whereas business-to-business companies focus on the corporate 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 marketing strategy will need to be chosen. With the right strategy, a business will sell its products and/or services to other businesses. 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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Decision-making processes in b2b

In b2b, it rarely revolves around a single decision-maker. Instead, you are dealing with an entire decision-making unit - from buyers and technical advisors to financial managers and end users. Each of these stakeholders has its own interests, questions and information needs. This makes the purchasing process not only longer, but also more complex. Trust, substantiation and clear added value are decisive. Successful B2B marketing cleverly responds to this with targeted content per phase of the buyer journey and tailored to the various roles within the DMU (Decision Making Unit).

Target

The target audience of b2b companies differs greatly from that of b2c companies. The target group 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 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 companies are very important for the business decision maker.

Products and services

B2b businesses can offer a variety of products and services. They can be business services, such as the services of accountants, marketing agencies and website developers. Office supplies, cleaning supplies, raw materials or retail products.

B2b companies target the business market; other companies. They provide services or products that allow companies to reduce costs or increase sales. The 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. Online marketing offers more and more opportunities for companies to differentiate 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.