Sales Loves MarketingB2B, short for business to business, means a company sells to other companies instead of to consumers. A firm that makes payroll software for HR teams is B2B. So is a supplier that sells steel to a car factory. The opposite is B2C, business to consumer.
How does B2B work?
B2B trade happens all along a supply chain. Wikipedia's example is car manufacturing: the carmaker makes many B2B purchases, such as buying tires and other parts from suppliers. Only the final sale of the car to a driver is a B2C transaction. That is why the total value of B2B trade is so large.
B2B is not limited to goods. Services such as accounting, recruitment, cleaning, consulting and software subscriptions are also sold business to business.
What is the difference between B2B and B2C?
| B2B | B2C | |
|---|---|---|
| Buyer | A company, represented by several people | One person or household |
| Deal size | Usually larger | Usually smaller |
| Buying process | Longer, with research, budget approval and negotiation | Often short and personal |
| Decision makers | Several stakeholders, such as users, finance, procurement and IT | Usually one |
| Relationship | Ongoing, often with contracts and renewals | Often one-off or loosely repeated |
| Marketing focus | Business outcomes, return on investment, risk | Personal needs, emotion, convenience |
The group of people involved in a company's purchase is often called the buying center or decision-making unit. Selling B2B means convincing each of them, not just the person who signs.
A typical B2B buying process
- The company recognises a problem or need.
- A team defines requirements and gets a budget approved.
- They research suppliers, often online, and build a shortlist.
- They compare offers, run demos or trials and check references.
- Procurement and legal negotiate terms.
- The contract is signed and the product is rolled out.
- The relationship continues through support, renewals and upsells.
How do companies market to B2B buyers?
B2B marketing aims to reach the right companies and the right people inside them. Common approaches:
- Content and SEO: guides, comparisons and glossaries that answer questions buyers search for during research. See inbound marketing.
- Email marketing: newsletters and nurture sequences for leads who are not ready to buy yet.
- LinkedIn and professional communities: where buyers follow industry discussion.
- Account-based marketing: campaigns aimed at a named list of target companies.
- Events and webinars: to meet buyers and show expertise.
- Partner and referral programs: consultants, agencies and other vendors who recommend you.
Because deals involve several people and take time, B2B teams track lead generation and pipeline closely, along with customer acquisition cost and customer lifetime value.
For a step-by-step plan, read how to develop a B2B marketing strategy.
Related terms
Frequently asked questions
What is the difference between B2B and B2C?
B2B companies sell to other businesses; B2C companies sell to individual consumers. B2B sales usually involve higher values per deal, several decision makers and longer buying cycles, while B2C purchases are often made by one person, quickly.
What is an example of a B2B company?
A tire maker that sells tires to a car manufacturer is a B2B company. So is a software company selling a CRM subscription to sales teams, or a cleaning firm with office buildings as clients.
Can a company be both B2B and B2C?
Yes. Many companies sell to both, for example a software vendor with a consumer app and a business plan. Some also use a B2B2C model, selling through a business partner to that partner's consumers.