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B2B and B2C Strategies in Ebusiness

The document discusses various business-to-consumer (B2C) marketing strategies and models. It describes five common B2C business models: 1) the freemium model, 2) subscription model, 3) advertising revenue model, 4) marketplace/platform model, and 5) razor-razor blade model. It also outlines goals of B2C marketing, digital transformation of B2C marketing, steps to B2C marketing success, and examples of outstanding B2C marketing campaigns.

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181 views29 pages

B2B and B2C Strategies in Ebusiness

The document discusses various business-to-consumer (B2C) marketing strategies and models. It describes five common B2C business models: 1) the freemium model, 2) subscription model, 3) advertising revenue model, 4) marketplace/platform model, and 5) razor-razor blade model. It also outlines goals of B2C marketing, digital transformation of B2C marketing, steps to B2C marketing success, and examples of outstanding B2C marketing campaigns.

Uploaded by

vidhyaaravinthan
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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UNIT IV

Strategies for marketing, sales and promotion - B2C

Mrs. A. Vidhya
What is B2C (business-to-
consumer)
 B2C (business-to-consumer) marketing is a broad
term that refers to the approach of selling goods,
products, and services to consumers. It differs
from B2B (business-to-business) marketing in
that B2C marketing typically (but not always)
involves more emotional, lower involvement
purchases.
Goals of a B2C marketing
 approach include:
 Raising brand awareness
 Increasing engagement
 Getting more leads
 Creating customer evangelists
 Driving more sales
 Boosting customer retention, loyalty, and lifetime
value
successful B2C business models
 Freemium model
 Subscription model
 Advertising revenue model
 Marketplace/ platform-based/ brokerage /
aggregator model
 Razor-razor blade model
1. Freemium model. 
 Customers can access the basic product/service for free but
must pay for additional (premium) features and
functionality.
Pros:
 Easy to get a foot in the door: Customers are more open to
trying out products/services when there’s no fee attached
 Once buyers are hooked on your offering, it’s not too
difficult to convert them to paid plans
 Fairly easy to obtain word-of-mouth marketing exposure
Cons:
 You can fall into the trap of giving away too
much for free.
 Constant innovation is required to keep
increasing the value of premium services.
 Costs can outweigh earnings in the early stages
of business.
 Examples: LinkedIn, Dropbox, Spotify
2. Subscription model
 Rather than paying a high price once, customers
pay a recurring flat fee (every month or year) for
consistent access to a service/product.
Pros:
 Fairly predictable and reliable income stream
 Improved customer retention
 Ongoing servicing allows for close study of
customer behavior over time
Cons:
 Small issues can disrupt an entire product/service
delivery cycle.
 Most customers are only willing to subscribe to a
limited number of services (so the pool of
prospects is smaller).
 Examples: Netflix, Adobe, Birchbox
3. Advertising revenue model.
  Customers get the product/service for free. The
business earns money from advertisers.
Pros:
 Easy to attract and retain customers
 Fairly simple strategy to execute
 Cons:
 Audience/viewership stats must be significant
before advertisers will sign up (it can, therefore,
take quite some time before you start making
money).
 The revenue stream can easily dry up during
economic downturns.
 Examples: Facebook, Google, Instagram
4. Marketplace/ platform-based/
brokerage / aggregator model.
 The business serves as a platform that brings
together buyers and sellers, and takes a small cut
of every transaction.
Pros:
 No major overhead or need to own/store stock
 Potential for rapid growth
 Gives platform operators access to user data
Cons:
 You need to reach a critical mass of buyers and
sellers before others are tempted to join/engage.
 Reputation management can be tricky as the
business has limited control over the quality of
transactions.
 Examples: Airbnb, Uber, eBay
5. Razor-razor blade model.
 The business sells the base unit (a durable good) at below or
only slightly above cost price and makes most of their profit
from ongoing sales of complementary consumable products
sold at a high markup.
Pros:
 Easy to attract new customers (as price of base product is low)
 Fairly steady and reliable revenue stream (as customers are
“forced” to buy replacement consumables on an ongoing
basis)
 Encourages brand loyalty
Cons:
 This model requires lots of capital to start out.
 Competitors selling replacement consumables
that fit with your business’s base product can
easily steal sales away from you.
 Customers might feel conned.
 Examples: Gillette razors and razor blades,
Xbox video game consoles and individual games,
Printers and ink/toner cartridges
B2B practices -
 Organizing a promotional event
 Publishing blog posts 
 Cold emailing prospective
 Running a contest
 Installing roadside billboards
 Sending personalized text message reminders
 Launching a loyalty app
Digital transformation in b2c
marketing -
 A slew of new ways to engage.
 Access to actionable data.
 More control at each stage of the customer
journey. 
 Greater personalization. 
 Enhanced interactivity. 
 Automation. 
9 steps to B2C marketing success

1. Consider the “7 Ps of marketing.


2. Identify and study your target audience.
3. Segment your audience and develop buyer
personas.
4. Conduct a competitive analysis.
5. Refine your understanding of the customer
journey.
6. Choose appropriate B2C marketing channels.
7. Develop appropriate marketing strategies.
8. Define your goals and allocate marketing
budget.
9.   Track performance and tweak accordingly.
Outstanding B2C marketing
examples
1. REI’s “Expert Advice” section for a great
example of B2C SEO marketing 
2. Airbnb for tip-top B2C marketing
personalization
3. Fashion Nova for a five-star example of a B2C
ambassador program
4. Waze for awesome B2C content marketing
5. Ikea for B2C social media
6. Sephora for a super B2C marketing strategy
that leveraged a loyalty program
7. Best Buy for an excellent B2C marketing
retargeting strategy
B2C marketing channels
 Paid search: Leverage PPC, or SEM, and
display ad marketing
 search engine results pages (SERPs)
 Social media marketing
 affiliate marketing
Strategy for b2b model
I. PURCHASING, LOGISTICS
AND SUPPORT ACTIVITIES 
Purchasing Activities
Purchasing activities include:
Identifying Vendors
Evaluating Vendors
Selecting Specific Products
Placing Orders
Resolving any issues that arise after receiving
the ordered goods and services
II. ELECTRONIC DATA
INTERCHANGE
 EDI is a computer-computer transfer of business
information between two businesses that uses a
standard format. Transaction data in B2B
transactions includes the information on paper
invoices, purchase orders, request for quotations,
bill of lading and receiving reports.
 How EDI Works?
 Value added Networks
 EDI on the Internet 
III. SUPPLY CHAIN
MANAGEMENT 
 Value Creation in the Supply Chain
 Technology in the Supply Chain
IV. Software for Purchasing,
Logistics, and Support Activities
 Enterprise Resource Planning Software 
 Business-to-Business (B2B) Commerce
Software
 Supply Chain Management Software

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