1.3 Individual vs. Organizational Buyer Behavior
Your T-shirt company CEO was impressed by the results of your first marketing campaign. However, your fledgling company still needs another revenue stream to make its sales goals this year. You realize that your company has only been focusing on individual consumers and has not tapped into organizational buyers. You know the right individual consumer to target who could lead you to a group sale: a high school teacher and the teacher’s school. But how does an organization differ from an individual when it comes to buying behavior?
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While we are using the more technical term of organizational buyer in this course, you will typically use the phrase Business to Business (B2B) in your marketing career. Alternately, you would refer to selling to an individual consumer as Business to Consumer (B2C). Let’s look at a quick definition of these terms and then examine the immediate behavioral differences.
Business to Consumer
A company that conducts business with one individual consumer or family unit is a Business to Consumer company. A hair salon would be a clear example of a company that services only individual consumers.
Business to Business
A business that sells to other businesses regardless of size is a Business to Business company. For example, manufacturing companies typically sell only to small businesses and corporations.
| B2C | B2B |
|---|---|
| Focuses on an individual’s wants for a discretionary product in audience targeting and decision-making. | Considers a group’s needs for a solution in audience targeting and decision-making. |
| Emphasizes emotions in promotions. | Focuses on rationality in promotions. |
| Concentrates primarily on building more remote, short-term relationships. | Concentrates on developing closer-proximity, long-term relationships. |
| Uses simplistic language in marketing content copy. | Uses industrial terminology in marketing content copy. |
| Provides for individuals to purchase for personal use. | Seeks large-scale, group solutions for buyers. |
| Generalizes products and services and has minimal customer service involvement. | Personalizes products and services and has a heavy customer service component. |
| Has a large number of customers with a lower-value product and service. | Has a select audience with a higher-value product and service. |
So what do these B2B and B2C behavioral differences look like when reflected in advertisements? Let’s analyze two Facebook ads.
B2B – DocuSign
In this Facebook ad, DocuSign combines several B2B behavioral elements. DocuSign includes industry terminology with the word proposal, highlights rationality with the words reduces errors, and gives solutions with the phrase “Go from proposal to close in a tap.”
B2C – The Sill
The Facebook ad for The Sill integrates multiple B2C behavioral elements. It includes emotions with the words boost moods, highlights personal use with the words self care, and emphasizes wants with the phrase “Gift yourself greenery.”
With a better understanding of the differences between B2C and B2B behavioral needs, you’re ready to cultivate your relationship with your teacher (B2C) into a long-term, recurring sale of school T-shirts for graduating seniors (B2B).
Explore The Changing Face of B2B Marketing on Think with Google.