B2B vs B2C Marketing (What Are The Differences?)

– In the red corner, we’ve
got the overly emotional, benefit driven, impulse
buying, often imitated, but never replicated B2C marketing. And in the blue corner, we’ve
got the highly rational, but oh so boring,
features driven, logical, and rational, but takes
forever to make a decision B2B marketing. Both have a time and a place. And that time and place is here and now. So let’s get to it. (upbeat rock music) Hey there, my name is Adam Erhart and welcome to the Modern Marketing Show, where we help you make
marketing that matters. So if you’re interested in learning about the latest and greatest
marketing strategies, tools, tips, tricks, and tactics, well, ya may wanna consider subscribing (bell chiming)
and hitting that little notification bell. Now before we dive into
the meat and potatoes about B2B versus B2C, we need to make sure that we’re operating
from the same definition, so let’s quickly cover that first. First up is B2B or business to business. Now this is a business that operates by selling its products
to other businesses, kinda self explanatory. And the same thing
pretty much goes for B2C or business to consumer, which is a business that operates by selling its products or services directly to consumers. Now when I first got started in marketing, I got to learn all about
the B2C market first. This is what most people think about when they see an ad on TV or hear something on the
radio or see something online. My introduction to B2B marketing, however, came from one of the worst places possible to learn about it, a textbook. I remember like it was yesterday, sitting, staring, and
quickly losing focus on what I was supposed to be concentrating on and my textbook soon becoming my pillow for the next 45 minutes, but it’s hard to blame
myself looking back. After all, my B2B marketing textbook was filled with such amazingly
exciting chapters like Organizational Buying Behavior,
Supply Chain Management, Inter-Firm Relationships and Networks, Relationship Portfolios
and Key Account Management, and who could ever forget the classic, Segmenting The Business Market and Estimating Segment Demand. I remember thinking to
myself, “What is this stuff?” At the point I was taking this class, I had already been studying
marketing for years, had built a successful agency and was already consulting
some of the best and brightest minds in the marketing from all over the world. I’d also already worked in sales and marketing for years in
both B2B and B2C industries and sold everything from shoes
all the way up to airplanes, and I knew the concepts
that they were talking about in the textbook were really
just written for academia. Big words and concepts
just to sound interesting, but with little real world application. Sure, there were some good gems in there and some important takeaways to learn, but even for a self-confessed
marketing geek, this was just too much and nobody ever built a business studying Inter-Firm
Relationships and Networks. Here’s the thing, whether B2B or B2C, marketing is marketing. And marketing is little
more than communicating how your business, your
product or your service can help solve your customers’ problems. Don’t over complicate it. The whole B2B versus B2C
thing really confuses things by suggesting that each requires
its own set of strategies and tactics and underlying principles. Now, before I suggest a better alternative to comparing which one, B2B or B2C, let’s first take a quick look at the differences between them. Now business to business industries typically have the
following traits in common. They have fewer customers, larger orders, higher value orders, longer decision time, and in general, a longer
relationship is formed. B2C businesses on the other hand, typically have more
customers, smaller orders, lower value orders,
shorter decision times, and a shorter or transactional
relationship time. Now, obviously there are
exceptions to the rule, like in some cases, B2B businesses might have smaller priced items and some B2C businesses might
have higher priced items, but in general, the criteria
work pretty darn well. Basically, B2B marketing
typically focuses on fewer, but bigger customers, and B2C marketing, on more,
but smaller customers. This means for B2B type marketing, you’re gonna have a little more incentive to put a little more
punch behind your pitch because you’re gonna have to
market to fewer customers. And if you’re B2C type marketing, well, you’re gonna wanna
make sure that your message has a little bit more of a broader appeal ’cause you’re gonna wanna
appeal to more customers. But here’s where people and those textbooks
start to go oh so wrong. Whether you’re B2B or B2C,
here’s the cold hard truth. People like doing business
with people, not businesses, So even when we’re talking about massive, nameless, and faceless corporations, it’s still people behind those businesses that are making the purchasing decision. Which means it doesn’t
make a lot of sense to toss out common sense and replace it by businessing
up your marketing. This is especially true
today where customers, whether B2B or B2C, have become increasingly skeptical, jaded, and cynical of marketing in general. They’ve seen it all and they’ve been burned way too many times by spammy marketing, hyped up claims, and over-promising and under delivering. Fortunately, there is an alternative and one that’s easier, more effective, and a whole lot more fun, too. That alternative is to
all but completely abandon the constructs of B2B or B2C and choose instead to
embrace human to human or H2H marketing. Originally coined by Bryan Kramer, human to human or H2H marketing is pretty much exactly
what is sounds like; marketing like a genuine,
authentic person. This means removing inauthentic, stiff, and rigid marketing messages and choosing instead to replace them with genuine bonafide human communication, in all its messy and beautiful glory. This means more smartphone videos and less Hollywood production. Oh, hey there. More conversation style email marketing and less personality-devoid business talk. It means completely
eliminating words like synergy from all of your marketing and replacing them instead with words that people actually use, maybe like cooperation
or working together. It means actually caring about the person on the other end of
the call, or the email, or the social media post. And it means not treating
customers like products, or assets, or a means to an
end, or rather, the end itself. But above all, it means being human and seeking to serve the
people in the best way you can. And when you do this with good intentions because you really can’t fake this stuff, well, a funny thing starts to happen. You’ll find your marketing
becomes way more effective. It also becomes way more fun
and a lot easier to create. And you’ll find that your
audience will start to overlook any tiny flaws or errors that
you may have made in the past that people quickly jumped on; typos, bad hair days, too
many ums, ahs, whatever! People are a lot more willing
to forgive other people when they recognize that they have the best intentions at heart. Some of the best B2B and B2C marketing that I’ve ever created and ever seen have gracefully walked the line
between being professional, but approachable, authentic, but engaged, and results-driven, but
people-driven first. Because authenticity and being truly human doesn’t mean sacrificing professionalism. Whether B2B or B2C, results
matter, but people matter more. Alright, so thanks so much for watching. I hope you enjoyed the episode. If so, make sure to give it a thumbs up, subscribe to the channel, and if you have any comments or questions about this episode, make sure to leave them in
the comments section below. Also, for more great marketing strategies, tools, tips, tricks, and tactics, make sure to head over to adamerhart.com which is packed full of all
sorts of different resources and articles and videos to
really help take your business and your marketing to the next
level and way beyond that. So thanks so much for watching and I’ll catch you next time
on the Modern Marketing Show.

Building A 100 Crore Business From Scratch – Startup Success Story – P C Musthafa, ID Fresh

you [Applause] thank you I am Mustapha PC CEO of a chemical ID fresh we make world's best food at least can you guess the number of Italy's we banned illusions each ability any cut six what total number of release five lakhs or more some sort crow right it's a bit more than currently is what we eat every day if if you weigh this at least it will weigh more than hundred elephant H and elephants that's what we bang rodents eat every day and that's the fact in the next 15 minutes I'll share three stories with you these are the real life stories from my my life this is the stories we learned during our journey of building a thousand coral brand the first stories about the opportunity cost of not doing the right thing at the right time how about my childhood I was born in a very remote village my dad was a coolie worker there was no electricity in my village there were no roads in my village the nearest school we had to walk six kilometres daily to for my schooling three time meal was a dream in my life and break first law Celeste Cherie I was very poor in my studies I was a school dropout I later went back to school and became a school topper I then ended up doing me engineering in computer science from an etic allocate by chance and then an elopement ended up doing my MBA from I am bankroll by choice I was given a canvas offer from a company called Manhattan associates in Bangalore after seeing my offer later my dad felt they may mistake at a extra– zero in the offer letter because my monthly salary offer was more than his lifetime saving and after seeing my real first month salary he cried my dad was finding it extremely difficult to meet both ends I ended up doing curry job with him at the age of 10 life went on I started my first venture again at the age of 10 it was a makeshift Kirin a store in my village during my summer holidays and that used to be my first profitable venture my next business was in my early 20s I was a techie I did spend my time working as a software engineer with various immense ease in India Europe and Middle East I from a techie background try to do something in technology field I started the online used car showroom along with the front of mine based out of Middle East it was a superhit during the initial days but we lost the focus it and we had shut it down in three years in my early 20s again I had this weird idea of creating an app or a product technology product to chat talk share videos with my friends and families back home because I just recalled so very expensive from Middle East at that time I had the prototype ready I probably the failure from the previous attempt I didn't venture into it around 4 years back I happen to download a product on my mobile phone which had almost all features that I had envisaged at that time the product was green in color around two years back I read an article that a blue-colored app has taken over this green colored app at a whopping 2 lakh crore rupees and that's my opportunity cost of not doing the right thing at the right time so my first message was don't lose to your 2 lakh crore let me share my second story the story of ID again I was a techie working with in Delhi in Bangalore during my MBA days I used to chat with my cousin's who used to be my childhood friends as well to do something different in my life one of the main reason for me to come back to India was to create employment for smart kids in my village so many ideas popped up one day one of my cousin mentioned about this idli dosa batter vendor he used to supply idli dosa batter in a plain pouch sara barba and on top of it it had all sort of issues that a food product could get into that regular quality complaints service issues and cockroaches as well sometime my cousin's tried to fix the issue with the vendor multiple times didn't work out so finally we thought of fixing it ourself that's how idea was born we started can i yeah we started in a small kitchen 50 square feet kitchen with investment of less than 50k and today we are a fresh fresh foot brand what thousand cover the market we start with 10 idlis and today we sell more than 50 thousand 50 thousand kg of Italy dosa batter every single day started with 200 release our customers use Italy batter the batter made of ID to cook more than 1 million in Italy every single day and that translates to more than 35 crores of Italy in a year which translate to more three thousand elephant Asian elephants in a year we start with four employees and we are a team of thousand five hundred plus today starting in tipper Sandra we are present in 16 cities today with 12 products what worked well for us we are the right mix of people and we're not going to give you again we have the right mix of people we started it as a family business but we were smart enough to quickly scale it up to a professional less company without losing the spiritual spirit of entrepreneurship so we transitioned the co-founders the more of entrepreneur dusk and brought in experts in the market to run business as usual and scale it up that really worked for us the product was very key for us it will be key for everyone any product company but let me share a story with you we made it leaders are better we didn't make it Lee we in a homemaker won't let or won't feed Italy bottom out said to her family on a daily basis we sell Italy better she picks up a pack of Italy better from the market lands the product in the kitchen not on the dining table she makes thirdly and serve it to a family hot if the Italy comes out well she gets a credit but if for some reason if for some reason Italy is hard blame goes to me the brand ID so the product selection is very important don't over engineer no batter not really it was estimate modern for us to set the distribution right it was extremely important for us to get the distribution right so we did set up our own distribution network today we covered more than 20,000 stores every single day with 320 fleets of our own because too many the product quality throughout supply chain to assess extremely important for us to do our own distribution four years back we were a 10 crore business per year haven't recipe to implement ASAP in ID they literally laughed at it but I was pretty clear to build a thousand core business we need a proper platform so we invested early the right time in the technology and becoming from technology background probably that helped branding and packaging really worked for us in the so called the marketing which everyone will talk about advertisements we actually spent 0 PI say in marketing in the first 80s we start spending money on marketing the soccer marketing in the last two years our the only investment in the marketing for the first eight years was the right product right in the right packaging right service right merchandised according to me if you have done that half of your marketing is done and that's the cheapest form of marketing get the right product right packaging right service so then we went on we got funding from Helion two years back to they funded the defect roads for us to scale it up and this year Premji inversed has invested hundred fifty coordinate e we are in the process of building a unicorn out of food business fresh food for India from India now the biggest challenge for me is my third story the biggest challenge that any packed food companies go through is the trust factor how many of you believe a product packed food is healthy we heard talking someone talking about Patanjali stories right any packed food is considered unhealthy story was no different for me our products are 100% natural we do not add any chemicals we do not add any precipitation a food no additives nothing that we use natural ingredients for a natural process for a natural fermentation and we get the natural product but then consumers don't buy our products for that purpose consumers buy ID because it is convenient for them they don't consumers don't trust the underlying principles of ID and that's a common issue for any food brand we trade multiple options to break the barrier in workout so finally we trade something different and my third story is about trusting the customers so we were trying to get trust from our customers and they were not trusting us so we thought can't we trust them so that they will in turn trusting us so we did an experiment we did set up 40 shops and manned shops in apartment complexes and these shops had all ID products in a chiller there was no camera there was no salesperson there was no technology there was no there was no vending machine there was some money box next to it customers were expected to open the chiller take the batter or Piratas chapathis out and drop the money in the money box next to it walk away when we discuss the idea with the apartment association and most of the portman associations the secretary and presidents would be the army veterans they literally just laughed at me said bitch are you in India are you coming for us now but then we were confident we won't agree to try my last story is to share the students of my trust shops so we did set up 40 such touch drops in 40 apartments customers were surprised they've never seen that happening and the end result is we got more than 90 percent collision on MRP basis which means it was more profitable to me than a retail business and my personal revenue was more than a retail business because it took me around 6 months to sell 5 kg of batter in a normal retail store in this store from month 1 onwards we're selling around 9 packets of idli dosa batter so this was better revenue better profitability last year this idea was rated as the best marketing best food marketing idea in India now I'll show you a quick video which really went viral can you play that for me please [Laughter] thank you to conclude it's a Maiko insolence that breakfast was a lecture during our childhood days today we serve breakfast to million people every single day idea quality of itit doesn't matter if you can if you have conviction in it and if you see that opportunity go ahead with it people won't believe in it people would laugh at it initially and finally trust your customers so that they will trust you just summarized happens in India only in India keep eating more at least at least everyday jaikant thank you you