E-Business the Differences Between B2B

E-Business

The differences between B2B and B2C

The Internet has changed the way that companies do business. The new and dynamic business-to-business (B2B) and business-to-customer (B2C) models on the Internet are seen to belong to a new economy with different methods and marketing procedures and processes. The changes and different opportunities that the Internet has brought about can be seen in the fact that today large, small and even micro companies are using the Web to communicate with partners, suppliers and prospects to transact electronic commerce. While the majority of the revenue is in B2B trade, B2C sales are steadily gaining popularity by delivering value to customers parallel to generating revenues from sales.

In brief, B2B Web sites include company Web sites, product supply and procurement exchanges, software for building B2B sites, specialized or vertical industry portals, as well as brokering and Information sites. Company sites serve as an active 'round-the-clock' platform to showcase products or services, some providing entrance to an exclusive extranet available to registered site user's only and online retailing (e-tailing) to other businesses. Furthermore, brokering sites act as a go-between on behalf of someone wanting a product or service and prospective providers.

A simple definition of B2B is as follows: It refers to "companies buying from and selling to each other online. But there's more to it than purchasing. It's evolved to encompass supply chain management as more companies outsource parts of their supply chain to their trading partners." (Varon E. 2006)

On the other hand, B2C websites are "...intermediary portals to link customers to suppliers." (What Is the Difference between B2B and B2C?) Similarly, the central focus of B2C sites is on providing value to the end user. Among the other differences that impact on marketing aspects, is that B2B sites are product-driven while B2C sites are more relationship-driven. Furthermore, B2B target markets are usually smaller and more focused than B2C. (What Is the Difference between B2B and B2C?)

These essential differences are an indication of the different marketing methods that would need to be employed by each commercial model. For instance, the fact that B2C is focused on relationships obviously means that a more client-driven and relationship-orientated mode of marketing would be more appropriate in this case. This factor is emphasized by the central aim of B2C marketing, which is attracting potential consumers through product information, converting them into consumers, retaining them in the course of share-value created during the process, and building a long-term relationship with consumers to stimulate repeat business through a network of viral marketing strategies.

Typical B2C marketing models comprise online auction stores that provide an electronic bidding mechanism to facilitate contracting, payments and delivery. The revenue sources for the auction provider are usually derived from a common umbrella made up of transactions from a collection of e-shops.

Another factor that is important in B2C marketing and which distinguishes it from B2B models is that the B2C marketer has to spend more time on promotion and image building with the aim of building trust between the seller and the client. This is due to the fact that B2C participants are obliged to rely only on the information and electronic images showcased on the site to influence consumers' perceptions and buying decisions. Internet users purchasing goods or services online are compelled to accept as true a supplier's pledge to send the goods or honor the contract after payment by credit card has been successfully transacted online.

A typical B2C site will therefore use conventional advertising techniques to attract the customer. "On a B2C site, the customer is inundated with colorful flashing graphics or banners seeking to attract hits and bring traffic to the website...Easily visible... priced items are used to reel in the customer. " (How to Market Your B2B/B2C Web Site)

However, the advertising style on a B2B site is different to that of a B2C in that there is less need to attract spurious clients and the general public. There is a less ostentatious and more low-key approach to the method of advertising. "The web sites usually are rather plain, with no flashing graphics or animation. The presence of links to examples of other businesses is found most often in a B2B site. They are focused on attracting businesses to hire them for a job or to promote the great work they have done with another company." (How to Market Your B2B/B2C Web Site) On the other hand, the success of a B2C site depends on getting browsers to direct customers to the site, building customer relationship loyalty by creating an easy-to-use customer service application, offering personalization and making the site quick and easy to navigate. Another vital aspect is to ensure that customer orders are promptly carried out.

An example of this marketing and advertising difference between B2B and B2C can be seen on the different type of sites associated with Sabre Holdings (http://www.sabre.com/).On the main B2 B. site of Sabre Holdings for example, the potential business client sees very little on the website but a paragraph at the upper left corner describing the work done by the company and where its headquarters are located... A link to the corporate site is found in the upper right hand corner of the page along with the company logo. All that remains on the page are separate subheadings with three links to branches of the company...." (How to Market Your B2B/B2C Web Site)

This marketing approach differs racially in terms of presentation and sales pitch that is presented to the customer on the B2C sites.

The first link for the B2C site, Travelocity, displays the statement... most popular online travel service... Customers are able to search for and book deals on air, cars/rail, vacations, cruises and last minute deals. They may receive their confirmation in an email immediately. The work is done by the actual consumer, unlike that of the B2B site

How to Market Your B2B/B2C Web Site)

Another important difference in the marketing process between B2C and B2B is that with B2B the sales process is usually more involved and takes place over a longer period of time. This is due to the fact that the typical B2B customer"... is looking for the best price possible with a commitment of good customer service." (Warholic J.A.)