Marketing is a tremendously important aspect of running a business. It allows you to reach out to the local community and to the world and have some expectation that they will reach back out to you. Marketing creates a network of relationships between companies and individuals, essentially creating the markets that we know and love today like apparel, grocery, auto and more.
The key goal of marketing is to expand your client base and make profits. You can do this in one of two ways: either through business-to-consumer marketing or business-to-business marketing. Both styles have been proven to yield success, though the type of success they yield might look a little different.
This style of marketing is the most recognizable and commonly the first style of marketing you learn as a student of business. Professionals use business-to-consumer marketing to focus on individual consumers to grow their business and cultivate their profits.
- Close the Competition Gap: B2C marketing allows you to lower your competitors by taking away their opportunity to beat your product in quality, price or availability.
- Infinite Market Capacity: Your potential consumers are no longer limited to individual businesses around the world, but rather people. Currently, there are about 45,000 domestic companies with over 323 million people. Would you rather have a market of 45,000 customers or 323 million?
- Stronger Business Relationships: By working closely with your clients in a direct fashion, you will be able to improve the quality of your relationships. No more dealing with a middleman — you now control the fate of your business partnerships.
- Specific Target Markets: B2C marketing requires a large and highly complex market. In order to sift through the chaos, you have to really identify who will benefit most from your product, narrowing the market more and more.
- Low Market for Raw Materials: Because B2C marketing specifically targets individuals, the product has to be in its finalized stage to make an impact. That leaves an entire market of products unused: natural resources and raw materials.
B2B marketing is commonly seen as the strategy which will earn a company the most money. It deals specifically with other companies rather than the individual to sell products in bulk and at a heftier price point.
- More Profits: Businesses typically sell products to other businesses at higher costs. Because businesses typically buy products in bulk, they are then able to turn those products over for an even larger profit, making it a win-win for both companies.
- Less Aggressive Marketing Campaigns: Businesses don’t have to resort to television commercials and ads to reach their consumers. B2B marketing allows them to simply notify companies of their available products rather than target specific messages to individual consumers.
- Back-and-Forth Buying: Once you have established a B2B relationship with another company, you begin to form a partnership of equal buying and selling. Businesses start to work together and buy each other’s products after making money together on a B2B deal.
- Slow Turnaround Time: Often, companies take a long time to make a decision about purchasing a product. Businesses are very good at doing their homework, and they will research for weeks or months before making a final purchasing decision.
- Loss of Power: Typically in a business deal, the seller has the power to name the price point. This is flipped in B2B marketing because businesses now have more options for negotiating price, customizing products and more. The individual consumer, on the other hand, has to choose to either purchase the product at the given price point or walk.
Companies have been evolving for a long time, innovating their methods for marketing, product production and management. For example, the market for inventory-based subscription businesses is really booming. People enjoy being able to spend their free time with their friends and family experiencing the world rather than walking through a store. This form of business allows them to have their needs met without leaving the house.
Rather than going out once a month to shop for your new products, you can subscribe to companies that provide these products at set intervals. Stitchfix is an example of this type of company that has experienced tremendous growth in this market.
The digital era has also changed the way companies market themselves and operate. Digital marketing has become highly valuable for businesses, allowing them to reach an entire network of people through online interactions and campaigns. Digital marketing has also taken a lot of the footwork out of traditional marketing.
The internet has also really expanded people’s product possibilities. Because we have access to so many different products, goods and services just through the internet alone, demand for things has gone up.
People enjoy being able to select a photo of something that looks interesting online and immediately be connected to a landing page dedicated to teaching them more about this product. In turn, they purchase these products, helping to fuel the economy and the marketplace for consumption.
At the end of the day, B2B and B2C marketing are only two methods for moving your products and growing your business. There are a variety of new and creative ways to market for your company — all you need to do is choose the one that earns you the most profits.
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Avery-Taylor Phillips is a magnificent freelance writer. You can contact her @ email@example.com
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