Volume 03 Issue 05-2023
49
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
03
ISSUE
05
Pages:
49-57
SJIF
I
MPACT
FACTOR
(2021:
5.
705
)
(2022:
5.
705
)
(2023:
7.
448
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
ABSTRACT
The article classifies B2B and B2C markets and performs their comparative analysis. The target audience of the B2B
and B2C market, the specific characteristics of the sale of goods, transactions, distribution channels, customer
behavior and their actions in these markets are classified and their distinctive features are studied.
KEYWORDS
B2B and B2C characteristics, supply chain, B2B and B2C market target audience, buying process, transactions, pricing,
distribution channels, buyer behaviour.
INTRODUCTION
Research aimed at creating marketing and its
theoretical foundations is becoming increasingly
popular in the world. The reason is that marketing is
the science and philosophy of the market that helps
the entrepreneur to find his customers. The study of
marketing theories is not only helpful in understanding
the market, operating in it, influencing it and managing
it, but it is also the key to success in business.
The development of the economy and the
modernization of buyer behavior (the mass movement
of customers, their behavior and emotions in their
purchasing behavior) and management practices
(marketing development and differentiation of the
specific market in its sectors and industries) have made
the market unique B2B and B2C requires learning by
segmentation.
Research Article
STRATEGIES AND DIFFERENCES IN B2B AND B2C MARKETING
Submission Date:
May 17, 2023,
Accepted Date:
May 22, 2023,
Published Date:
May 27, 2023
Crossref doi:
https://doi.org/10.37547/ijmef/Volume03Issue05-07
Safarov Bakhtior Djurakulovich
Tashkent State University Of Economics, Researcher Of The Department Of Marketing, Uzbekistan
Journal
Website:
https://theusajournals.
com/index.php/ijmef
Copyright:
Original
content from this work
may be used under the
terms of the creative
commons
attributes
4.0 licence.
Volume 03 Issue 05-2023
50
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
03
ISSUE
05
Pages:
49-57
SJIF
I
MPACT
FACTOR
(2021:
5.
705
)
(2022:
5.
705
)
(2023:
7.
448
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
The abbreviations B2B and B2S in marketing entered
the science as modern directions. In marketing, the
phrase "B2B" corresponds to the English phrase
"business to business" and applies to business
activities aimed at selling their products or services not
only to final consumers, but to other enterprises. The
phrase "B2C" means business to the final consumer,
corresponding to the English phrase "Business to
Consumer".
The division of marketing into two major areas requires
the creation of methodological bases for the study and
improvement of their theoretical aspects in the world
of science.
The fragmentation of the market into different sectors
such as B2B and B2C has introduced a new dynamic
logic for marketing and made it easier to study the
different aspects of this discipline. From this point of
view, in the studies of most scholars, they have
focused on the justification of their different aspects in
the study of B2B and B2C marketing theories.
LITERATURE REVIEW
The theoretical aspects of market segmentation based
on the differences in the use of products by consumers
and the characteristics of value creation have been
studied by scientists such as Rémi Mencarelli, Arnaud
Riviere, Lindgreen , Cova and Salle , Gummesson .
conducted research aimed at developing approaches
to the organization of electronic business in small
business entities according to the characteristics of the
B2B and B2C market .
M.Roberto and J.Wesley, who studied the evolutionary
development of marketing theories over 100 years
based on the literature analysis of the last 30 years,
developed a series of theoretical rules suitable for
marketers in the B2B field. In general, the scope of
research in this regard is wide, and clear criteria for the
marketing activities of enterprises operating in the B2B
and B2C market have not been developed.
Business marketing is a marketing activity that helps
other companies or businesses sell their products or
services . Today, everyone is an active participant in the
B2B and B2C market, directly or indirectly.
Although the initial steps in creating marketing
strategies for B2B and B2C markets are similar, mainly
aimed at defining the target audience and ensuring
effective communication with the customer, in order
to develop target strategies, it is necessary to
understand the main differences between B2B
marketing and B2C marketing. It is also required to take
into account these differences in order to ensure that
the marketing strategy is designed for the specific
market.
B2B is a market activity based on business-to-business
exchange of products or services. A typical supply
chain often involves multiple processes with B2B, as
companies need to purchase fixed assets and raw
materials from other business entities in order to carry
out their production processes.
B2C marketing refers to market relationships that
occur in the process of selling products or services to
Volume 03 Issue 05-2023
51
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
03
ISSUE
05
Pages:
49-57
SJIF
I
MPACT
FACTOR
(2021:
5.
705
)
(2022:
5.
705
)
(2023:
7.
448
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
consumers. Typically, this is marketing aimed at
consumers who buy clothes for themselves in retail
outlets, eat out at restaurants, or subscribe to pay TV
channels to watch at home. The term B2C also refers to
online and e-mail distribution systems where
manufacturers or sellers sell their products to
consumers over the Internet. B2C marketing is all
marketing relationships between a retailer and a
wholesaler in the process of selling a product to the
final consumer.
ANALYSIS AND RESULTS
The characteristics of the B2C market are as follows:
the technology of the sales process is relatively simple;
uses focused branding strategies;
minimizes transaction costs ;
personal selling is preferred;
relies on the psychological states of consumers;
market to consumers i social will be directed;
Table 1
Between the characteristics of B2B and B2C marketing difference
B2B MARKETING
B2C MARKETING
Trade volume big
Trade volume low
B2B — products buy get high risk
B2C — products buy get low risk
Purchases usually enterprise team and decision
makers by done is increased .
Purchases usually alone in order negotiations
with done is increased .
B2B companies own in advertising the brand
public information of means they use less .
B2C companies own in advertising their brands
more public information of means they use
Big in the B2B market quantity of products will
be sold . Therefore , trade _ volume and demand
high will be
B2C products are usually sold at retail, so the
purchase risk and trade the volume will be low.
B2C online sales and aux ts ions also means _ B2C focus
in the center more buyers attraction to do and own
customers save to stay directed . The main goal is the
buyer to become a permanent customer . In the B2C
market, it is common for information flow to take place
through personal interactions and the Internet. The
flow of information is as follows: customer order /
service
order,
product
information,
technical
characteristics of goods, provision of services by the
enterprise. Examples include eBay (auction store),
amazon.com (online store), orbitz.com (online
service), and cheaptickets.com (online service).
In global countries, B2B market has a very small target
audience, while B2C market works to attract a wider
target audience.
A buyer in the B2C market performs the process of
purchasing a certain product faster than in the B2B
market. Brief information about the buyer, including
name, residential address, date and time, is sufficient.
Volume 03 Issue 05-2023
52
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
03
ISSUE
05
Pages:
49-57
SJIF
I
MPACT
FACTOR
(2021:
5.
705
)
(2022:
5.
705
)
(2023:
7.
448
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
Consumers buying products from a B2C marketplace
make purchases at the same price as other consumers.
In the B2B market, the price may vary depending on the
customer. Customers who agree to place a large order
or set special terms will pay lower prices than other
customers. Payment mechanisms in the B2C market
can be made mainly by cash, plastic card or online
transfers, deferred payment or loans.
In
the
selection
of
distribution
channels,
manufacturing enterprises make mutual agreement
with B2C market participants, and B2B market
participants act as coordinators of the main 4
processes (Figure 1).
Partnership agreements between B2C market
participants and trade intermediaries lose their
relevance in changing market conditions, as they are
based on personal relationships and traditions that are
difficult to change. Modern theories of marketing use
the principles of "Relationship Marketing" to regulate
these processes.
The basic unit in the analysis of the "buyer-seller"
relationship
is
the
interaction
between
the
representative of the purchasing organization and the
representative of the selling organization. The
behavior of buyers in the B2C market is a key factor in
their decision to purchase a product.
Figure 1. Traditional distribution channel model in B2B and B2C market
Modern forms of the B2C market are emerging in the
virtual world. B2C marketing is the most studied in the
field of digital marketing in foreign scientific literature.
Smart, technology-driven interactions and synergies
between businesses and consumers are the key
challenge of 21st century marketing. The main B2C
market Internet and smart technologies are organizing
the trading area.
As a result of the development of various digital
technologies in the new century, B2C relationships
have
changed
significantly.
However,
these
relationships have not only changed in terms of the
Volume 03 Issue 05-2023
53
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
03
ISSUE
05
Pages:
49-57
SJIF
I
MPACT
FACTOR
(2021:
5.
705
)
(2022:
5.
705
)
(2023:
7.
448
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
way, place and time of doing business, but have
fundamentally changed the nature of the relationship
and the context of consumer behavior.
B2C relationships have changed functionally, but at the
same time the business and social frameworks of the
relationship have changed in substance and context.
The concept of B2C interaction has been redefined in
terms of motivators, the role of consumers is more
active and participatory, and B2C relationships are
increasingly moving to digital technologies. In doing
so, the traditional marketing communications (MMC)
mix requires significant adaptation to emerging trends
and new technologies, as well as to concurrently
changing consumer behaviors and key motivators.
Direct marketing (direct marketing) and word-of-
mouth (WOM) as the main elements of integrated
marketing
communications
related
to
digital
marketing have become the main strategic directions
for creating B2C smart retail. Direct marketing is the
basic form of marketing that takes place between the
seller and the customer without an intermediary.
The emergence of modern forms of information and
communication technology (ICT) has shaped the
marketing paradigm, particularly direct marketing and
the mass market environment known as online or
digital marketing. Internet marketing is marketing that
allows
existing
and
potential
customers
to
communicate directly with sellers electronically.
Direct marketing uses two categories of smart
channels to reach target customers: (1) traditional
channels such as direct selling, direct mail,
telemarketing, and telemedia. (2) search engine
marketing (Search Engine Marketing-SEM), digital
display advertising (Digital Display Advertising -DDA),
e-mail marketing (e-mail marketing), social media
marketing (Social Media Marketing - SMM) and mobile
marketing (mobile marketing). The basis of traditional
marketing channel message-oriented, didactic and
generally limited means of communication, broadcast,
outgoing and one-way communication is further
developing. On the other hand, digital marketing
channels are characterized as interactive forms of
communication tools, and their activities are driven by
personalization of content according to customer
interests and expectations.
In general, digital marketing technologies include
experiential marketing functions of interactivity,
connectivity, and creativity in dealing with customers.
The development of various digital channels, such as
social networks, mobile applications, location-based
services, etc., requires the retail system to be
fundamentally changed and based on smart
technologies. Accordingly, modern B2C marketing
requires a shift to smart retail formats.
From the results of theoretical studies, it became clear
that for retailers in the B2C market, "value" is an
absolute measure in the development of their strategic
decision-making process, and it lies at the heart of
modern marketing philosophy. Yet this seems difficult
to understand for many retailers, who still base their
Volume 03 Issue 05-2023
54
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
03
ISSUE
05
Pages:
49-57
SJIF
I
MPACT
FACTOR
(2021:
5.
705
)
(2022:
5.
705
)
(2023:
7.
448
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
decisions on more specific strategic elements of cost,
functionality, etc. Not only in retail, but also in other
business models, "value" always appears as an
important and constant factor at the strategic and
procedural level.
Based on the above research result, a unified,
comprehensive, continuous and value-based multi-
dimensional model of the interaction system of retail
business and consumer in smart retail is recommended
in Figure 2.
The model proposed in Figure 2 comprehensively
captures the key business and system factors affecting
smart retail, connects them, and prioritizes the form of
customer value creation. In particular, the smart retail
development model aimed at creating value for
customers, based on the results of theoretical
research, embodies the main factors and actions,
which are as follows:
• Adaptation to the changing factors of the business
environment;
• Adaptation to changing business practice factors;
• Identifying retail consumer behavior and main
motives;
• Implementation of the Smart Marketing Strategy
process;
• Identify smart retail tools and benefits;
• Identify digital marketing factors affecting sales;
• Demonstration of the value of smart retail;
• Smart retail value stakeholders;
• Smart retail value
-oriented executive actions.
Figure 2. A smart retail model focused on creating value for customers
Marketing strategy
Key drivers of retail consumer
behavior
Marketing MIX (4P)
Motivation of logistics processes for retail
consumers
Integrated marketing communications
Digital marketing
Marketing technologies
Smart retail concept
Improved smart retailing strategic tools
STRATEGIC
EFFECTIVENESS
Changing business
processes
Reasons for changes in
business
The influence of
external forces
A SMART RETAIL MODEL
FOCUSED ON VALUE
CREATION
STRATEGIC
EFFECTIVENESS
PARTICIPANT EFFECT
Internal
Benefits for customers
Risk motivation for retail consumers
Price incentives for retail consumers
Retail consumer communication
factors
A digital environment designed for
retail consumers
A digital system designed for retail
customers
Assessment through social networks
Volume 03 Issue 05-2023
55
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
03
ISSUE
05
Pages:
49-57
SJIF
I
MPACT
FACTOR
(2021:
5.
705
)
(2022:
5.
705
)
(2023:
7.
448
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
The bottom part of Figure 2 lists the changing factors
of the business environment, and these changes are
considered as the main factors driving the
development of smart retail. These factors have been
shown to influence and shape retail consumer
behavior, including the costs and risks of implementing
smart retail. Similarly, the factors of the changing
business environment are the basis for the
development of online social networks, through which
online customers and their behavior should be
considered as decisive, influencing forces in retail sales.
The second is a collection of marketing-related
systems, features, and tools.
The upper part of Figure 2 shows the company's
strategic response to the changing business
environment and customer behavior based on a
motivational approach. In this context, the last factors
are schematically presented and these are the factors
that form the basis of the marketing strategy.
Accordingly, on the upper right side of the figure, the
concept of smart retail is illustrated with its tools and
advantages. Theoretical studies have shown that
changes in consumer, technology and marketing
practices influence smart trading as a holistic business
approach.
CONCLUSIONS
All of the above environmental, consumer, and
marketing factors ultimately culminate in activities
focused on creating value for customers as the means
and ends of smart retailing. Thus, in the proposed
model, value appears in two forms: soft and hard. The
model identifies key stakeholders and actors and
divides them into three categories: external, internal
and ongoing customers. Finally, at the center of the
proposed model are three smart retail value-oriented
activities identified as the most important steps for
developing a value-based smart retail marketing
strategy.
Smart retail is a modern approach to retail efficiency in
the modern B2C market, combining value category and
individual elements that explicitly or implicitly define
business-consumer relationships and synergies.
The results of scientific-theoretical analyzes made it
possible to come to the following conclusions:
1. "Value" is the best tool for understanding the
business-consumer interaction of smart retail, as it
allows both to have a holistic and comprehensive
understanding of relationship synergies, interactions,
risks and benefits.
2. "Value" is the ultimate goal of both parties in the
relationship, as both the modern retail business and
the modern consumer help to understand business and
consumer motivation.
3. Focusing on "value," especially through its "soft"
manifestations, gives retailers the strategic flexibility
to develop a unique and resource-intensive
competitive advantage. This relieves small retailers
from the disadvantages of economies of scale and
strengthens their position vis-à-vis small and large
competitors.
Volume 03 Issue 05-2023
56
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
03
ISSUE
05
Pages:
49-57
SJIF
I
MPACT
FACTOR
(2021:
5.
705
)
(2022:
5.
705
)
(2023:
7.
448
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
4. Smart retail, becoming a holistic strategic approach
to retail, supports the transition to new strategic
directions based on the use of modern marketing tools
as part of a broader marketing tactic.
5. Smart retailing not only improves the retailer's
position in relation to consumer benefits, risks and
costs, but also redefines and increases profits by
leveraging business and social synergies.
6. Smart retail has "invaded" the consumer's life,
especially through consumer social networks, but
correspondingly, even proportionately, the consumer
has "invaded" the retailer's marketing process. Both
parties seem chaotic in this, but the inevitability of its
growth is the only means of maintaining the
relationship in a balance of strong interactive synergy
and mutual respect.
REFERENCES
1.
Lynch, J. and de Chernatony , L. (2004) 'The
Power of Emotion: Brand Communication in
Business-to-Business
Markets',
Brand
Management 11(5): 403
–
19.
2.
Lusch , RF and Vargo, SL (2006) 'Service-
Dominant Logic: Reactions, Reflections and
Refinements', Marketing Theory 6(3): 281
–
86
3.
Remy Mencarelli , Arnaud Riviere. Perceived
value in B2B and B2C: A comparative approach
and cross-fertilization. Marketing Theory, SAGE
Publications, 2015, 15 (2), pp.201-220
4.
Lindgreen , A. and Wynstra , F. (2005) 'Value in
Business Markets: What Do We Know? Where
Are
We
Going?',
Industrial
Marketing
Management 34(7): 732
–
48
5.
Cova, B. and Salle, R. (2008a) 'The
Industrial/Consumer Marketing Dichotomy
Revisited: A Case of Outdated
6.
Gummerus , J. (2013) 'Value Creation Processes
and Value Outcomes in Marketing Theory:
Strangers or Siblings?', Marketing Theory 13(1):
19
–
46
7.
Helen A. Klein, Nancy M. Levenburg , Simha R.
Magal . B2B vs. B2C: A Comparison of e-
Business Strategies among SMEs. Proceedings
of the Twelfth Americas Conference on
Information Systems, Acapulco, Mexico
August 04th-06th 2006
8.
Roberto Mora Cortez, Wesley J. Johnston. The
future of B2B marketing theory: A historical
and prospective analysis. Industrial Marketing
Management
(2017),
http://dx.doi.org/10.1016/j.indmarman.2017.07.
01
9.
Apex Two [2012] B2B vs. B2 C Marketing
[online] August 5, 2012, Available from:
http://apextwo.com/b2b
vs-b2c-marketing-
differencewhy-it-matters/
[Accessed:
23
February, 2014
10.
Elaine J. Hom [ 2013] What is B2B, Business to
Business Marketing [online] August 27, 2013
Available
from:http
Volume 03 Issue 05-2023
57
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
03
ISSUE
05
Pages:
49-57
SJIF
I
MPACT
FACTOR
(2021:
5.
705
)
(2022:
5.
705
)
(2023:
7.
448
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
://www.businessnewsdaily.com/5000-what-
isb2b.html [Accessed: 9th June, 2014]
11.
Chris Williams ( 2010), 6 Characteristics of a
Perfect B2C Energy Efficiency Company
[online] September, 3 2010, Available from:
http://www.renewableenergyworld.com/rea/b
log/post/2010/09/6-characteristics-
of-a-
perfect-b2c-energy-efficiency-
company[Accessed: 23 February, 2014]
12.
Study Mode , B2B vs. B2 C Supply Chain [online]
January,
2007,
Available
from:http://www.studymode.com/essays/B2B-
VsB2C-Supply-Chain-104280.html[Accessed: 22
February, 2014]
13.
Pantano , E., 2014. Innovation drivers in retail
industry. Int. J. Inf. That's it . 34, 344
–
350.
14.
Kotler, P., Keller, KL, Brady, M., Goodman, M.,
Hansen, T., 2009. Marketing Management.
Prentice Hall, Harlow, p. 6 (58, 129, 703-708,
735-739, 863-867).
15.
Ryan, D., Jones, C., 2012. Understanding Digital
Marketing. 2nd edition. Kogan Page, London
16.
Sharifkho'jaev U.U., Khakimov Z.A. Interactive
and digital marketing. Study guide. - T.:
"Economy", 2019 - 200 p.
