B2B vs. B2C Market Research

1. B2Bvs.B2CMarket Research The acronymsB2B orB2Carenotuncommonforthoseintomarketing.It referstothetypesofassociationsamongtwogroupsinmarketingparlance, viz-a-vizamarketingcampaign. B2Bdenotesmarketingrelationshipsbetweenbusiness-to-business,andB2C talksaboutmarketingconnectionsconcerningbusiness-to-customer.Whilein bothcases,thereisthepromotionof serviceorproductsbeingsold,research indicatesthatthedecision-makingmethodamongthesetworelationshipsis prettydissimilar.Thus,theneedtounderstandthedifferencebetweenB2B vs.B2C marketresearchemanates. Researchalsoindicatesthatbusinessesbasetheirpurchasedecisionson logic.Often,businesses comprise ateamofemployeesmakingabuying decision.Thisisdoneforthesakeofstreamliningtheroute,savingsandtime. BusinessesaresimilarlymoreapprehensiveaboutROI (returnoninvestment in termsofsavingmoneytime orresourcessincetheseleadto a relative increase in revenue.)whenpurchasingaserviceoraproduct. DifferencesbetweenB2BandB2CMarketResearch Thebiggestdifferenceistheinvolvementofmixedmethodologies-Almostall B2C marketresearchreportsand studieswillcovermixedmethodologies. ThisisnotthesamewithB2Bmarketresearch.Thelatterwilldependon factorslikethecomplexitylevelsoftheB2Bmarkets,therequirementfor capturingampledataandtherequirementfortestingandverifyingresultswith a viewtowardsachievinganacceptablestandardofconfidencestatistically. The secondmajordifferenceisthefact thatB2B marketresearchactivitieswill naturallyinvolve moreweb,telephoneand email-basedsurveysand information gatheringactivitiesas compared to physicalinterviewsofpeople. The focusgroupconceptisrarelyusedwhileyoutalkaboutB2B market research.However,ifyouconsiderB2C marketresearch,thenin-person

2. interviews,focusgroups andpersonalizedquestionandanswersessionsare parforthecoursesincethecustomerisfocusedondirectly. • The third bigdifferenceliesin thesizesofsamples.The B2B marketresearch kittywill naturallyhaveasmallersizeascomparedto B2C marketresearch pools.Forthelatter,researchers,to successfullydeal withsuchhuge volumes,usuallyprioritizeinfluentialandthemostimportantrespondentsto surveys,whilealsoemphasizingtheneedtohavemorequalifiedparticipants. • Anotherdifferencethatyoushouldnoteisthefact thatB2C marketresearch incentivesforsurveyparticipationmayhavein-your-faceincentiveslike discounts,giftcards,cashrewards,freeitems,etc. However,theseare slightlymorecomplicated incaseofB2Bmarketresearchsincetheyhaveto betailoredmoretowardsthebusinessesemployingrespondentsor participants. • The maindifferencethatyoushouldneverforgetisthesubject/objectof research,i.e.inB2C research,thepersonbeingresearchedorstudiedisthe end-userorend-consumeroranindividualmakingthebuyingdecisions.In theB2Bspace,youmayormaynotalwaysberesearchingthosetakingthe finalbuyingdecisions.The leadtimes arealsolongerin theB2B market researchspaceascomparedtotheB2Carena.B2Bmarketresearchershave to first identify organisational hierarchy and the authority demarcation for findingoutthefinal decision-makers.Gatekeepersorpeoplewhowillpresent alistofoptionsto thedecisionmakersalsomatterimmenselyinB2Bmarket research. • GoingfurtherwiththeB2BandB2Cdifferences,apartfromportrayingthe solution toa givenproblem,onemustalsounderstandthebenefitsthese diverse strategiesandmethodologies provide forboth. • B2BMarketResearchBenefitsandmethodologiesadopted: • Both Qualitative andQuantitativedataareanalyzed togetinsightintothe businessneeds,preferencesandcompany’sopinions.

3. Datacollectionfrommultipleentitiesprovidesamoreprofoundunderstanding ofthebusinessasacustomer. • Specifictargetmarketpermitsforsmallersamplesizesforconductingmarket research. • B2B marketresearchcan beconductedoverthephoneoronlineinsteadof in- person focusgroups. • B2CMarket ResearchBenefitsandmethodologiesadopted: • A companyofferingB2B serviceorproductmayatthemost,competeonly with 1or2competitors. • However,withB2Cmarketing,thereisadditionalrivalryforpayingattentionto the brand • Thus,usingB2C marketresearchiscriticaltobecompetitiveinthemarket. • B2C marketresearchbenefitsfromalargerpopulationofprospective customersto participatein themarket research. • Conclusion • The difference inB2BandB2Cmarketing being distinctive, diversemarket researchstrategiesarerequiredtobedeployedtoderivebenefitsfromthe useofdivergentmarketingstrategiesforbothbecauseoftheir inherent uniqueness.