10 Characteristics of B2B Marketing

In business-to-business marketing, it is important to understand the key differentiators of this business model. The key to developing strong brand equity is to understand these key differentiators and to identify a brand strategy, supported by research, that will enable the most advantageous progression to the target. Although fewer customers are involved, in business-to-business markets, fewer customers lead to more complex processes, making it more difficult to differentiate in the challenging process of building brand equity.

Business-to-business markets are different from consumer markets in many ways. B2B stands for ‘business to business’ and B2C stands for ‘business to consumer’. These two models differ in many ways, not only in the dictionary meaning. In B2B, the target audience consists of companies, while B2C targets individual consumers. Both systems have their own challenges or unique rules in many ways. Here are the main differences in B2B:

In B2B, the buyer makes a more complex purchasing decision. In B2B, the purchasing decision on behalf of a business ranges from low-value and low-risk items to the purchase of vital products. This brings with it the need and responsibility to consult multiple departments before making a purchase. In B2B, not only product information, but also the technical and other support the buyer will receive throughout the purchase process can come into play. Multiple decision and approval mechanisms make the purchase and post-purchase process more complex. Unlike B2B, B2C consumers make decisions with only their own savings in mind.

Those who buy on behalf of their company have the responsibility to make the right decision. They take fewer risks and therefore need quality to be absolutely right. They must have the expertise or basic knowledge to recognize a bad offer when they see it. Often as a result of paying more than they pay as a consumer, they demand more in return for payment. At this point, B2B buyers want to increase their engagement and profitability with the product or service and tend to be more rational with the goal of maximizing the benefits of the products or services offered.

Business-to-business buyers often know what they want and are better informed than consumers. B2B organizations need to make the most of every opportunity to connect with their target audiences, understand their demands, respond differentiatively and make their brands stand out. In the purchasing process, the B2B buyer with prior knowledge is aware of the product that will contribute to the workforce and should be encouraged to purchase behavior by offering campaign options that will create reasons for preference.

Since B2B buyers make purchasing decisions for all companies, they have a more challenging task than B2C buyers. Unlike in B2C, in business-to-business buying the quantity of the product or service is very large and the number of customers is small. Large quantities, a small number of customers and a few key accounts are the key differentiators of business-to-business markets, and this is where marketing strategies diverge from marketing strategies for consumer markets, and hence where the other marketing moves also differ significantly. On the other hand, all these processes bring with them quantity density and masses of data. In B2B, database management is a vital part of business-to-business marketing. With an integrated database system and automation of data flow, it becomes possible to offer a more exclusive service to B2B customers and thus take a step forward in creating brand value. For more information: https://www.map.com.tr/tr/urunler-ve solutions/our-products/

Research shows that B2B markets are much less behavioral than consumer markets and cover more need-based segments. For example, the purchase of raw materials to be used in the production of t-shirts requires the purchase of a product with technical details in accordance with the production plan of the t-shirt and choosing the most suitable option for this need is a need-based consumption motivation rather than a behavioral purchase. Therefore, there is a segmentation difference in B2B compared to B2C.

B2B buyers bring high monetary value purchases. Therefore, the impact of mistakes at any step in the sales process can snowball. For example, a human error in the invoicing or returns process can create a crisis for high value B2B buyers. In small-value B2C, on the other hand, such mistakes have much less impact. In this sense, how interpersonal communication is created and maintained in B2B is crucial, especially during the buying cycle. In addition to managing this communication correctly, it is also important to personalize it. According to the Salesforce State of the Connected Customer report, 72% of B2B buyers expect sellers to offer personalized interactions. A personalized buying experience contributes to customer satisfaction. Compared to B2C, customer relationships take precedence in this area, as whether a customer stays or goes can make a big business difference.

B2B buyers are often repeat buyers, so organizations need to consider the long buyer lifecycle. B2B buyers prefer long-term purchases, while B2C consumers usually only buy a product once. In B2B, there is a long-term commitment, as more time needs to be spent researching recommendations and sourcing. This leads to customer loyalty. It is relatively more difficult to develop customer loyalty in the B2C customer, as B2C customers are prone to impulse buying and emotionally driven purchases. The difference in consumption tendencies between emotional buying and rational buying directly differentiates marketing approaches.

In B2B companies, innovations are implemented less frequently than in B2C, but in the longer term. Ephemeral trends, new applications that change and are removed quickly are not practiced in B2B. As customer churn is more challenging in B2B, innovations are also approached cautiously. Innovations are usually innovations that have already been implemented and added value. In B2C businesses, customer reactions and responses are different, and innovations that are popular with customers can be tried more quickly. In this sense, the tendency to take risks is lower in B2B companies. In B2B, it is more common to keep up with the innovations being implemented and adapt to the requirements of the age, rather than taking the courage to take risks by creating new trends and developing bold innovations and keeping creativity at a high level. In business-to-business marketing, it is critical that innovations are grounded in detailed market research and that the indicators evaluated in the light of data are correctly evaluated in the implementation of innovations.

In B2C, the customer’s buying behavior is based on a more behavioral tendency. The situation is different in B2B, which is rational and need-driven. Therefore, in B2C, the customer’s purchasing decision is based on a very complex decision-making psychology, such as how the product or service looks, how it feels, what dynamics it is based on in social and psychological terms. In B2B, this situation is replaced by meeting the need, the technical quality of the product is much more prioritized than the packaging criteria. Functionality is at the forefront. Therefore, rational benefits and benefits in relations with suppliers are more important.

In B2C, main brands and sub-brands can be managed by positioning them in a way that creates integrity and differentiates them at the same time. The main reason for this is that the meeting of product ranges with different customer segmentations is strategically presented through different personas and presented through different brands and brought to the customer. However, in B2B, where there are fewer target audience groups, there is no need to create sub-brands as there is no such diversity in target audience segmentation. Business-to-business buyers are more knowledgeable than consumers in B2C, they decide to buy by determining what they need because it is need-oriented, and multiple brands and sub-brands can often be seen as confusing or a waste of time rather than functional in this process.

All these differences lead to the need for different segmentations in B2B and B2C, different approaches to creating different solutions to the needs and expectations of the target audience, different ways of presenting products and services, brand promises, brand value development methods or strategies, and ultimately reputation. Similarly, it leads to a complete differentiation of all strategically planned activities in the various dimensions of communication in customer relations, whether mass or interpersonal.