B2B vs. B2C

For more than a decade usage of the Internet has increased exponentially changing the way companies interact with their customers. According to Ralph Oliva (2007, p.1), “Forecasters expect domestic B2B purchases will continue to total trillions of dollars annually.” He goes on to say that in 2004, “domestic B2B online sales totaled $2.7 trillion” while online retail sales in 2004 reached $184 billion. This increase has opened up new opportunities and challenges for marketing to these customers electronically. Because business customers and individual customers react differently to marketing, strategies and tactics used to reach one segment may differ from those used to reach the other. This paper will first look at how the business customer and retail customer are different, then delve into the differences between B2B and B2C marketing. Relationship Differences One important aspect of marketing is to build good relationships with customers. “In B2B or business to business this requires a commitment of time and good customer service prior to ever making that first sale.” (Warholic, 2007, p.1). One of the differentiating factors between B2B and B2C sales is the B2B sales process takes longer because business customers require more communication and product details. Business customers are not apt to purchase during the first contact with a vendor. Usually the sale, especially the first one, takes multiple contacts creating a bonding relationship. Business buyers are accustomed to providing “data about their companies and job functions” when “registering for trade shows or subscribing to business and trade publications.” (Furlong, 2007, p. 3). This exchange of data is common practice between businesses allowing for the building of trusting relationships. Business customers tend to set up accounts with the vendor from whom they purchase