Year: 2020

The company is not alone in its business environment. It is surrounded by and operates in a larger context. This context is called the Macro Environment. It consists of all the forces that shape opportunities, but also pose threats to the company.

The Macro Environment consists of 6 different forces. These are: Demographic, Economic, Political, Ecological, Socio-Cultural, and Technological forces. This can easily be remembered: the DESTEP model, also called DEPEST model, helps to consider the different factors of the Macro Environment.

Demographic Forces in the Macro Environment

Demographic forces relate to people. The name refers to the term Demography. The latter refers to the study of human populations. This includes size, density, age, gender, occupation and other statistics. Why are people important? Because, on the whole, their needs is the reason for businesses to exist. In other words, people are the driving force for the development of markets. The large and diverse demographics both offer opportunities but also challenges for businesses. Especially in times of rapid world population growth, and overall demographic changes, the study of people is crucial for marketers. The reason is that changing demographics mean changing markets. Further, changing markets mean a need for adjusted marketing strategies.

Therefore, marketers should keep a close eye on demographics. This may include all kinds of characteristics of the population, such as size, growth, density, age- and gender structure, and so on. Some of the most important demographic trends that affect markets are:

• World population growth: The world population is growing at an explosive rate. Already in 2011, it reached 7 billion, while being expected to reach 8 billion by the year 2030. By the end of the century, it is likely to double. However, the strongest growth occurs where wealth and stability is mostly absent. More than 70% of the expected world population growth in the next 40 years is expected to take place outside of the 20 richest nations on earth. This changes requirements for effective marketing strategies and should be kept in mind.
• Changing age structure: The changing age structure of world population is another critical factor influencing marketing. In the future, there will be countries with far more favourable age structures than others. For example, India has one of the youngest populations on earth and is expected to keep that status. By 2020, the median age in India will be 28 years. In contrast, the countries of the European Union and the USA have to face an aging population already today. This may lead to harmful reductions in dynamism and challenges regarding the supply of young workers who, at the same time, have to support a growing population of elderly people.
• Changing family structures: Also, families are changing which means that the marketing strategies aimed at them must undergo an adjustment. For example, new household formats start emerging in many countries. While in traditional western countries a typical household consisted of husband, wife and children, nowadays there are more married couples without children, as well as single parent and single households. Another factor comes from the growing number of women working full time, particularly in European nations. Together with further forces, changing family structures require the marketing strategy to be changed.

Geographical

One and the most important element of geographic shifts is migration. By 2050, global migration is expected to double. This has a major impact on both the location and the nature of demand for products and services. The reason is that the place people can be reached has changed, as have their needs because of the new situations. Other important factors are the ethnic diversity that provides new opportunities, as well as urbanisation.

Economic forces

The Economic forces relate to factors that affect consumer purchasing power and spending patterns. For instance, a company should never start exporting to a country before having examined how much people will be able to spend. Important criteria are: GDP, GDP real growth rate, GNI, Import Duty rate and sales tax/ VAT, Unemployment, Inflation, Disposable personal income, and Spending patterns.

Socio-Cultural forces in the Macro Environment

The Socio-Cultural forces link to factors that affect society’s basic values, preferences and behavior. The basis for these factors is formed by the fact that people are part of a society and cultural group that shape their beliefs and values. Many cultural blunders occur due to the failure of businesses in understanding foreign cultures. For instance, symbols may carry a negative meaning in another culture. To understand these forces, Hofstede’s cultural dimensions can be used: Power Distance, Individualism versus Collectivism, Masculinity versus Femininity, Uncertainty Avoidance etc.

Technological forces

Technological forces form a crucial influence in the Macro Environment. They relate to factors that create new technologies and thereby create new product and market opportunities.

A technological force everybody can think of nowadays is the development of wireless communication techniques, smartphones, tablets and so further. This may mean the emerge of opportunities for a business, but watch out: every new technology replaces an older one. Thus, marketers must watch the technological environment closely and adapt in order to keep up. Otherwise, the products will soon be outdated, and the company will miss new product and market opportunities.

Ecological forces

Ecological, or natural forces in the Macro Environment are important since they are about the natural resources which are needed as inputs by marketers or which are affected by their marketing activities. Also, environmental concerns have grown strongly in recent years, which makes the ecological force a crucial factor to consider. For instance, world, air and water pollution are headlines every marketer should be aware of. In other words, you should keep track of the trends in the ecological environment.

Important trends in the ecological environment are the growing shortage of raw materials and the care for renewable resources. In addition, increased pollution, but also increased intervention of government in natural resource management is an issue.

Because of all these concerns and the increased involvement of society in ecological issues, companies more than ever before need to consider and implement environmental sustainability. This means that they should contribute to supporting the environment, for instance by using renewable energy sources. Thereby, businesses do not only support the maintenance of a green planet, but also respond to consumer demands for environmentally friendly and responsible products.

Political forces

Every business is limited by the political environment. This involves laws, government agencies and pressure groups. These influence and restrict organisations and individuals in a society. Therefore, marketing decisions are strongly influenced and affected by developments in the political environment.

Before entering a new market in a foreign country, the company should know everything about the legal and political environment. How will the legislation affect the business? What rules does it need to obey? What laws may limit the company’s ability to be successful? For example, laws covering issues such as environmental protection, product safety regulations, competition, pricing etc. might require the firm to adapt certain aspects and strategies to the new market.

As we have seen, the company is surrounded by a complex environment. The Macro Environment consists of a large variety of different forces. All of these may shape opportunities for the company, but could also pose threats. Therefore, it is of critical importance that marketers understand and have an eye on development in the Macro Environment, to make their business grow in the long term.

Company may be visualized as an institution in society surrounded by environment i.e., various external forces influencing its functioning. It is said that business is a product of environment OR Business is the creation of its environment.

1. The nature of business,
2. Location of a business enterprise,
3. The product to be manufactured or service to be rendered by the business unit,
4. Size and volume of operations of the firm
5. Price to be fixed for the product, etc., are determined by the environment within which the business operates.

The business firm consists of a set of internal factors and is confronted with a set of external factors (i.e., environment). This is the relation between a firm and its environment. The internal factors are regarded as controllable factors, as the firm has got control over these factors.

The firm can alter or modify internal factors to its advantage. The examples of internal factors are nature and number of personnel, physical facilities, organisation and functional means, such as marketing mix, to suit the environment.

The external or environmental factors are beyond the control of the business firm and the success of the firm will depend to a very large extent on its adaptability to the environment (factors) i.e., its ability to properly design and adjust the internal factors/variables to take advantage of the opportunities and to combat the threats of the environment.

The environment, if poses threats to a firm, it offers immense opportunities also for exploitation. Both these situations depend upon the environmental factors influencing the firm.

Relationship between an Organization and its Environment

The environment of a business has a great impact on the functioning of the firm. It offers opportunities and threats along with limitations and pressures influencing the structure and functioning of the business.

Exchanging Information

An organization and its environment exchange information between themselves. Organizations need information about the external environment for planning, decision-making and control purposes. Hence, they analyze the environment’s variables along with studying their behavior and changes.

Further, the information generated by this analysis helps the organization handle the problems of uncertainty and complexity of the business environment. Therefore, firms try to gather information pertaining to market conditions, economic activity, technological developments, demographic factors, socio-political changes, competition activities, etc.

Also, the organization also transmits information to external agencies. It does so, either voluntarily or inadvertently. Therefore, the exchange of information is an important interaction between an organization and its environment forming the basis of their relationship.

1. Exchanging Resources

Apart from exchanging information, an organization and its environment also exchange resources. A firm needs inputs like finance, manpower, equipment, etc. from its environment. Typically, the resources required by an organization are categorized into 5 M’s:

• Men or Manpower
• Money
• Method
• Machine
• Material

An organization uses these inputs to produce goods or services or both. Acquisition of these inputs usually requires an interaction between the firm and the markets. This interaction can be in the form of competition or collaboration. Nevertheless, the purpose is to ensure a constant supply of inputs.

On the other hand, the organization depends on its environment for the sale of its goods and services. This process also requires interaction between the firm and its environment. Further, the firm must

Perceive the needs of the environment and develop products or services to meet those needs.

Satisfy the demands and expectations of the clientele groups. These groups are:

• Consumers
• Employees
• Shareholders
• Creditors
• Suppliers
• Local Community
• The general public, etc.

2. Exchanging Influence and Power

The third important interaction between an organization and its environment is the exchange of influence and power. By now, we understand that the external environment holds considerable power over a firm due to the following reasons:

• The business environment is inclusive
• It has a command over the resources, information, etc. which the firm requires
• It offers opportunities for growth on one hand and threats and constraints on the other

Hence, the environment can impose its will on the organization. On the other hand, there are times and scenarios when an organization holds a position wherein it can wield considerable power and influence over some aspects of the external environment. This usually happens when the firm has command over resources and information.

An organization with a higher degree of power over its environment has more autonomy and freedom of action. Also, the firm can dictate terms to its environment and mold them to its will.

An Organization’s Response to its Environment

In order for an organization to respond well to its environment, it must be able to monitor and make sense of its environment and have an internal capacity to develop effective responses. An organization’s response to its environment can be of the following three types:

• Administrative: These are either proactive or reactive responses to specific environments leading to forming or redefining the organization’s purpose and key tasks.
• Competitive: A change in the competitive environment can force an organization to respond with actions that can help it gain a competitive advantage over its rivals.
• Collective: Many organizations cope with environmental dependence problems through strategic collective responses including methods like co-opting, bargaining, alliances, etc.

Strategic management, especially when done well, is important for a business’ long-term success. When we say that a business is carrying out strategic management, what is meant is that “strategic management” defines a strategy for its business activities, with clear, well-defined goals. The business will then create clear, well-defined plans that it will then put in action to achieve its goals and to align its business activities, so that the business will be in harmony with those goals. It also will allocate all of the necessary resources to achieve those goals.

A good strategic management plan goes beyond the improving a business’ bottom line. A good plan also gives the company a valid social license for operations. In today’s environment, this is becoming an ever-more important aspect for each business, because businesses have multiple internal and external stakeholders. For example, consumers are seeing an increase in their awareness of their products being sold by companies. They’re also becoming increasingly more interested, not only in the products a business produces, but also in the way that a company conducts its business activities. This includes operations from an environmental standpoint as well as from an ethical one. All of these aspects should be considered in strategic management and should be included in the business’ plans, which should ensure that the business will survive in the long run.

Need of Strategic Management for an Organization

1. Increasing Rate of Changes

The environment in which the business operates’ is fast, changing.

A business concern which does not keep its policies up-to-date, cannot survive for a long time in the market. In turn, the effective strategy optimises profits over a long run.

2. Higher Motivation of Employees

The employees (human resources) are assigned clear cut duties by the top management viz. what is to be done, who is to do it, how to do it and when to do it. ? When strategic management is followed in any organisation, employees become loyal, sincere and goal oriented and their efficiency is also increased.

They also get rewards and promotions resulting in higher motivation for the employees. A strategy must respect human values and duly consider the aspirations of individual members.

3. Strategic Decision-Making

Under strategic planning, the first step is to set the goals or objectives of a business concern. Strategic decisions taken under strategic management help the smooth sailing of an enterprise. Strategic planning is the overall planning of operations for effective implementation of policies.

4. Optimization of Profits

An effective strategy should develop from policies of a concern. It takes into account actions of competitors. It considers future operations in respect of market area and opportunity, executive competence, available resources and limitations imposed by the Government. An effective strategy should optimise profits over the long run.

5. Miscellaneous

Mr. H.N Broom in his book on ‘Business Policy and Strategic Action’ has mentioned that a strategy has a primary concern with the following:

(a) Marketing opportunity: Products, prices, sales potential and sales promotion.

(b) Available distribution channel and costs

(c) The scale of company operations.

(d) The manufacturing process required to implement their scale of operations (with an optimal production cost)

(e) The research and innovation programme.

(f) The type of organisation.

(g) The amounts and proportions of equity and credit capital available to the firm and their combined adequacy.

(h) The planned rate of growth

Thus, strategy is important because it makes possible the implementation of policies and long range plans for attaining company goals, creation of effective business strategy requires a basic knowledge of economic theory, management principles, accounting, statistics, finance and administrative practice.

Skills Required for Strategic Management

Strategic management is a multi-faceted operation that requires lots of different skills in business and in leadership. For example, strategic management requires the manager be highly analytical and to have refined analytical skills.

Leaders who develop the strategies that drive a business are also required to have a bird’s eye view of the company, as well as an intimate understanding of how everything in the business is interconnected. They need to understand such things as the expectations of the stakeholders, the needs of the customers, the competitive landscape, the global trends, the environment within which the business operates and so on.

For strategic management to be successful, it needs to start with an understanding of the internal factors as well as the external factors that determine the success of the company, whether short term or long term. That understanding needs to be both honest and clear.

The relevance of strategic management is all about strategy, and so it will require strategy. The manager must have the ability to be abstract in the theoretical world of business analysis and also to be practical in business strategy. Business managers should be able to look at the business analysis, so that can identify the opportunities that the analysis reveals. They should then be able to choose the opportunities that they will follow, so that they can then develop a unique strategy, which defines how the business will leverage the opportunities, so that he will become successful.

Also, strategic management is all about leadership and, as such, it will require leadership skills of the strategic manager. The manager should be a strong enough leader to be able to implement the business strategy that’s been set out in the strategic-management arm of the business. These managers need to engage with the stakeholders of the company, both internally and externally, and be aware of the challenges that face strategic implementation. Additionally, they should be skilled enough leaders to overcome those challenges.

Training Required for Strategic Management

In theory, at least, it is possible to master all of the skills that strategic management requires, simply by gaining experience on the job. However, this is impractical and slow, at best. It is important to develop a training program for strategic management so that it is faster to attain the abilities that strategic management requires. This training should also be conducted under the guidance of a strategic management expert.

There are many institutions out there that offer courses in business development and management. When picking a college to go to, look for a course that is practical and takes you along the tricky path from business analysis to business strategy. That said, there are quite a few advantages to a good strategic management training program:

(i) Understanding

When you take a good strategic management course, you gain an intimate understanding of the way the business environment today is both interconnected and global.

(ii) Development

When you take a good strategic management course, you get the opportunity to develop your strategic thinking skills, especially in relation to the way your business operates within its immediate and greater environment.

(iii) Identification

Good training in strategic management will give you the ability to quickly and easily identify opportunities for your company in its immediate as well as greater business environment.

(iv) Creation

A good strategic management course will teach you how to create strategies that are both effective and efficient in the leveraging of the opportunities which you identify for your business.

(v) Management

As would be expected, good training in strategic management will give you the ability to manage both your team and the organization as a whole, as it moves forward to achieve the goals of your strategic plan.

The best kind of training in strategic management will give you the ability to work directly on the issues that affect your business. You will analyze the challenges faced by your business and provide support for your business as you develop a strategy for it. Good training will also provide you with the necessary leadership skills that will help you execute your business strategies.

Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate’s own marketing efforts.

Structure

The industry has four core players:

• The merchant (also known as ‘advertiser’ or ‘retailer’ or ‘brand’)
• The network (that contains offers for the affiliate to choose from and also takes care of the payments)
• The publisher (also known as ‘the affiliate’)
• The customer

The market has grown in complexity, resulting in the emergence of a secondary tier of players, including affiliate management agencies, super-affiliates, and specialized third party vendors.

Affiliate marketing overlaps with other Internet marketing methods to some degree because affiliates often use regular advertising methods. Those methods include organic search engine optimization (SEO), paid search engine marketing (PPC – Pay per Click), e-mail marketing, content marketing, and (in some sense) display advertising. On the other hand, affiliates sometimes use less orthodox techniques, such as publishing reviews of products or services offered by a partner.

Affiliate marketing is commonly confused with referral marketing, as both forms of marketing use third parties to drive sales to the retailer. The two forms of marketing are differentiated, however, in how they drive sales, where affiliate marketing relies purely on financial motivations, while referral marketing relies more on trust and personal relationships.

Affiliate marketing is frequently overlooked by advertisers. While search engines, e-mail, and web site syndication capture much of the attention of online retailers, affiliate marketing carries a much lower profile. Still, affiliates continue to play a significant role in e-retailers’ marketing strategies.

Performance/affiliate marketing

In the case of cost per mille/click, the publisher is not concerned about whether a visitor is a member of the audience that the advertiser tries to attract and is able to convert because at this point the publisher has already earned his commission. This leaves the greater, and, in case of cost per mille, the full risk and loss (if the visitor cannot be converted) to the advertiser.

Cost per action/sale methods require that referred visitors do more than visit the advertiser’s website before the affiliate receives a commission. The advertiser must convert that visitor first. It is in the best interest of the affiliate to send the most closely targeted traffic to the advertiser as possible to increase the chance of a conversion. The risk and loss are shared between the affiliate and the advertiser.

Affiliate marketing is also called “performance marketing“, in reference to how sales employees are typically being compensated. Such employees are typically paid a commission for each sale they close, and sometimes are paid performance incentives for exceeding objectives. Affiliates are not employed by the advertiser whose products or services they promote, but the compensation models applied to affiliate marketing are very similar to the ones used for people in the advertisers’ internal sales department.

The phrase, “Affiliates are an extended sales force for your business“, which is often used to explain affiliate marketing, is not completely accurate. The primary difference between the two is that affiliate marketers provide little if any influence on a possible prospect in the conversion process once that prospect is directed to the advertiser’s website. The sales team of the advertiser, however, does have the control and influence up to the point where the prospect either a) signs the contract, or b) completes the purchase.

Business-to-business “B2B” refers to commerce between two businesses rather than to commerce between a business and an individual consumer. Transactions at the wholesale level are usually business-to-business while those at the retail level are most often business-to-consumer (B2C).  

Recognizing Business-to-Business

The dollar value of business-to-business transactions is significantly higher than business-to-consumer activity because businesses are more likely to purchase higher priced goods and services and purchase more of them than consumers are. A bicycle manufacturer, for example, will purchase a truckload of bicycle tires or a coffee manufacturer will buy a massive, industrial bean grinder. Compare that with what’s purchased by a biking enthusiast or the individual coffee aficionado.

How Business-to-Business Selling is Different

Selling to a business is different from selling to an individual consumer. Key sales and marketing differences for business-to-business transactions include:

• Selling sometimes requires participating in a bidding process by responding to a purchaser’s request for proposals. On the business-to-consumer side, this compares to asking various auto dealers to provide their best offer on a specific make and model.  
• The decision-making process on a purchase can take days, weeks, or months, depending on how the purchasing company works and the size and nature of the order.  
• Purchasing decisions are often made by committees, so each member needs to be educated and “sold.” 
• The dollar value of goods or services sold is much higher than on the consumer or retail level, so the buyer needs to take steps to minimize risk. That sometimes involves requesting a product prototype or customization.  

Business-to-Business Doesn’t Exclude Business-to-Consumer

A company selling to businesses can also sell directly to consumers. A bead manufacturer selling its beads in bulk to costume jewelry manufacturers might also package them in smaller quantities sold to crafters at craft stores. A telephone manufacturer can sell in bulk to companies or one at a time to consumers shopping online or at an office supply store. A firm that provides health and wellness consulting to corporations can also advise individuals one-on-one or in group presentations.

It’s About the Customer, Not the Transaction Size

While business-to-business transactions often involve high prices and volume, they can also happen on a much smaller scale when a small business sells products or services to another small business. The hallmark of business-to-business commerce then, is the participants – two businesses rather than a business and a consumer.

The exploitation of social media marketing in case of businesses is also different from the one used for the customers. On the other hand, digital marketing, in the case of B2C, is all about entertainment and fun for selling products and services.

1. Past vs. Present

In the past, there were much more differences between these two types of marketing strategies because the primary method of research and point of contact differed greatly. The ground level basis was used by marketers to reach the customers. On the other hand, businesses used to be more formal and restricted in their methods of reaching out.

But today, the situation is completely different; both the businesses and the consumers are capable of working and researching their problems on the internet. A whole new expanse has opened up the opportunity for reaching out and making contact with potential new customers. In the realm of digital marketing, the method of reaching out and contact is nearly identical. A few significant changes suggest that the marketers have to make use of industry jargons for excellent effects on B2B platforms. The B2B marketing process is designed for efficiency and expertise seeking audiences. The B2B purchase process is more rational and logical as compared to the emotionally triggered consumer choices in case of B2C marketing.

2. B2B vs. B2C Audience 

The B2B buyers are top managers or owners of their respective companies. They are more sophisticated and gain an in-depth understanding of the service being offered by the marketers from an organisational perspective. They have an interest in a particular offer with an objective to grow their own company. Therefore, the marketers, when conveying a message through digital media, have to define how the managers or business owners can boost profits, save money and stay competitive in the long run using their product. In such case, the content must have to be thoroughly researched, and the marketers are required to give the audience a reason to utilise their product and service being marketed before it’s too late.

However, typical B2C buyers look for the best price available. They tend to purchase from the most trusted retailer. So, in this case, the marketing content and the website have to convey a feeling of confidence and security to the buyer. That is why the design of the site and the substance matters the most. The consumers are likely to opt for trusted sources for purchase. Therefore, in the case of B2C marketing, the digital marketers have to give priority to trust, security and brand loyalty.

3. Size of the Market

The size of the market is another important consideration in the field of digital marketing. When we talk about B2C marketing, the target market is larger and takes a major sector of the public, i.e., millions of customers are included in this case. On the other hand, in B2B marketing, you are targeting a particular niche, i.e., the number of clients is in thousands only. Hence, the differences in the size of the markets for both cases suggest that the content has to be appealing to the particular market that the company is aiming to target.

4. Marketing Material – Thought Leader or Entertainer? 

B2B marketing means you must have to understand the operational activities of the organisations which you are targeting. It is also essential to know who will be looking at your content and website. In B2B sector, there is a tremendous thrust for knowledge because the business owners are focused on growth and expansion of their companies. Your product will get an active appreciation if it is capable enough to contribute to their development. You have to provide the marketing material to lay out the foundation about how your product and services can save time, money and resources of your client. To captivate B2B customers, you must have to provide the relevant content which the businesses are actively searching for, and relate it with your offerings.

Whereas, B2C marketing is all about entertainment. Your customers are not going to follow the posts having too much of sales pitch. Only the genuinely exciting, emotional and funny content can keep the masses happy and content. In the case of B2C marketing, the marketers must have to utilise the social media channels with a personalized and lively touch. By just being a mere faceless corporate entity will only make you lose a significant number of customers in the long run.

From a client’s perspective, B2B and B2C both are just types of marketing to people like you and me. However, being a professional doesn’t mean that you cannot have fun. Marketing to the public does not say you cannot take advantage of B2B methods. Though both are different, you can utilise both at the same time.

5. Social Media Matters

B2B digital marketing strategy has a slightly different perspective involving long term relationship when compared to the social media strategy in B2C digital marketing. B2C companies flock to Facebook to reach wider audiences, on the other hand, B2B companies gravitate towards LinkedIn as a way to establish networks with active connections. In B2B digital marketing, the utilization of newer and trendier social media networks like Snapchat is not suitable in any way because teenage consumers are the possible demographics of this type of social platform. I am not saying that B2B marketers do not or should not use Facebook for promotional activities. My point is that they have to opt for the best social media marketing approach that targets the exact relevant audience for them.

6. B2B Marketing Builds Relationships 

The ultimate target of B2C marketing is to ‘sell’ the products and services to target consumers. On the other hand, B2B marketers tend to look for ways to establish long term ongoing relationships with their customers. The main aim of B2B marketing is to focus on generating lead and keeping up the long term relationship through emails, blogging and other strategies. B2B is all about building trust and sharing information with each other. It means that the marketers should communicate with their contacts for building a mutually beneficial relationship.

7. Businesses Want Facts 

B2C marketing requires making use of various exciting videos and tweets to entertain the target audiences. However, in the case of B2B marketing, the sole purpose of marketers is to spread information. The target market of corporate buyers includes industry savvy customers, and they seek information that can help them to grow their businesses. Facts and figures drive business customers. They want logic instead of a typical advertising strategy. If you are building an online media campaign, then it is important to keep in mind the interests and needs of your customers. Try to use info graphics, factual links and statistical reports to back up your claims.

8. Sales Cycle

Capturing the attention of your audience in both cases is entirely different from each other. In the case of B2B marketing, the marketers try to capture the attention of smaller markets over the longer period as compared to the marketing done in the case of B2C approach. The sales cycle in case of B2C marketing is relatively lower than the sales cycle in case of B2B. Similarly, business transactions need more consideration as compared to B2C operations and require a high level of trust and bond between the customer and the supplier. The sales cycle for B2B typically starts with driving traffic to the website for finding potential clients. Whereas, the B2C sales cycle is based on a single step purchase. In this case, the customer wants a brand to be perfect. So, for B2C marketing, you should give your clients a reason to buy your product.

9. Brand Value

By providing a branded content, the organizations want to create a favourable impression on their consumers. A little piece of an interesting content sufficiently evokes an emotional and political responsiveness among the customers. For instance, Procter & Gamble is successfully creating a forward thinking impression on its consumers. It markets products for entertainment and opts for emotional response option from them. This behavior reflects their B2C digital marketing strategy. On the other hand, in the case of B2B digital marketing, the marketers tend to provide a general overview. For this purpose, e-Books, whitepapers and other forms of downloads, such as template and documents, can be used to add more worth to your brand. These valuable sources incredibly contribute in enhancing your brand promotions. 

Moreover, to increase brand value, developing online public relations is considered as an integral part of B2C marketing, but it is not sufficient in the case of B2B marketing. In the case of B2C marketing, the marketers strive to get mentioned in various industry publications and blogs for to be read by their target audiences. In this instance, applying some fruitful strategy for media coverage can be a better option. Other than that, you can communicate via interviews, arrange meetings and write advertorials to increase your PR. Whereas, in the case of B2B marketing, a routine surveillance of industry related media outlets is required to enhance public relations.

10. B2B Content is More Accurate and Industry-Driven

The content is an integral part of digital marketing. Whether it is B2B marketing or B2C marketing, content plays a significant role in marketing and advertising your brand over the internet. While sharing or writing the content for B2C audiences, the marketers should have to keep it short. They need to make it as much humorous and catchy as possible to appeal a large number of readers. On the contrary, in the case of B2B marketing, a more detailed, informative and lengthy content is required because the marketers are expected to show off their digital expertise, they have to inform and inspire their prospective buyers.

By using B2B EC, business can reengineer their supply chain and partnership. B2B will offer access to following types of information.

• Product: rice, sales history etc.
• Customers: Sales history and forecast.
• Suppliers: Product line and lead-time, sales terms and conditions.
• Product process: Capacity, product plan.
• Competitors: Market share, product offerings.
• Sales and marketing: Promotions.
• Supply chain process: Quality, delivery time etc.

The following are the ways in the world that are being adopted with the help of B2B EC.

Electronic Marketing

B2B platform can be used to sell the company’s product and services to business customers on the Internet. This model can be called seller oriented marketing because customers visit the web site that the supplier has prepared. Certain group’s items, such as industrial equipment are purchased only by businesses.

Procurement Management

From the purchasing company’s point of view, B2B is a medium of facilitating procurement management such as reduced prices and reduced cycle time. To implement B2B from the procurement management point of view the buyer-oriented market place can be used where the buyer announces the RFQ to the potential suppliers for competitive purchasing. To the suppliers, participating to the customers oriented marketplace and winning the bid is the major concern.

Electronic intermediaries

Individual consumers and business purchases a group of items such as books, stationery and personal computers, in such cases the consumers and business buyers can share the intermediary. Certain items such as industrial equipments and parts are purchases only by business. Since the purchasing party is a business who has to deal with many suppliers and intermediaries, an integrated and tailored buyer’s directory linked suppliers and intermediaries is needed.

Just in time

JIT delivery of parts to manufacturing buyers is crucial to realize JIT manufacturing. Direct marketing requires an internal JIT manufacturing system; the JIT delivery and advanced confirmation of supplier’s inventory are essential elements for B2B.

Electronic Data Interchange

EDI is the electronic exchange of specially formatted standard business documents such as orders, bills approval of credit, shipping details and confirmation sent between business partners. The EDI translator is necessary to convert the proprietary data into standard format. Internet based EDI is an important technology for B2B EC.

Advantages of B2B

• Its is cost reduction technique for the company so as to overcome mediator
• With advancement in technology B2B can be done with the help of Electronic commerce.
• With the help of online auction the buyer of industrial goods can get the product at a cheap deal, as there are many competitors in an online auction.
• With E-Com electronic funds transfer-using EDI can be done between to organizations.
• B2B helps in lowering the cost for selling and marketing.
• It also shortens the selling cycle.
• The most important advantage of B2B is to have JIT just in time delivery, the company can have the track of good as to which place it has reached with the help of electronic commerce.

Transactions conducted through the internet between one business to another is called Business 2 Business. This type of business is carried out only through the internet. This business covers all types of organizations, right from auctioneers to business solution providers. This also includes business-business shopping and sales as well as provision of various services. With the advancement of technology with each and everyday, business transactions are carried out more easily and effectively as well as in a faster and efficient way.

Paper has been replaced by technology which makes the process easier and faster. In the United States of America alone, business to business has generated revenue of more than 7 trillion. Speed and Efficiency is very important in today’s competitive world, no matter what kind of businesses organizations conduct, and business to business has proven to be a big success because of the speed and efficiency. Businesses act with more speed and efficiency satisfying their customers which has proved to be an integral part of today’s B2B business. Moreover the growing resources of online services are helping business grow faster in every possible business area.

The term business-to-consumer (B2C) refers to the process of selling products and services directly between consumers who are the end-users of its products or services. Most companies that sell directly to consumers can be referred to as B2C companies.

B2C became immensely popular during the dotcom boom of the late 1990s when it was mainly used to refer to online retailers who sold products and services to consumers through the Internet.

As a business model, business-to-consumer differs significantly from the business-to-business model, which refers to commerce between two or more businesses.

Understanding Business-to-Consumer

Business-to-consumer (B2C) is among the most popular and widely known of sales models. The idea of B2C was first utilized by Michael Aldrich in 1979, who used television as the primary medium to reach out to consumers.

B2C traditionally referred to mall shopping, eating out at restaurants, pay-per-view movies, and infomercials. However, the rise of the Internet created a whole new B2C business channel in the form of e-commerce or selling of goods and services over the Internet.

Although many B2C companies fell victim to the subsequent dot-com bust as investor interest in the sector dwindled and venture capital funding dried up, B2C leaders such as Amazon and Priceline survived the shakeout and have since seen great success.

Any business that relies on B2C sales must maintain good relations with their customers to ensure they return. Unlike business-to-business (B2B), whose marketing campaigns are geared to demonstrate the value of a product or service, companies that rely on B2C must elicit an emotional response to their marketing in their customers.

B2C Business Models in the Digital World

There are typically five types of online B2C business models that most companies use online to target consumers.

1. Direct sellers. This is the most common model, in which people buy goods from online retailers. These may include manufacturers or small businesses, or simply online versions of department stores that sell products from different manufacturers. 
2. Online intermediaries. These are liaisons or go-betweens who don’t actually own products or services that put buyers and sellers together. Sites like Expedia, Trivago, and Etsy fall into this category.
3. Advertising-based B2C. This model uses free content to get visitors to a website. Those visitors, in turn, come across digital or online ads. Basically, large volumes of web traffic are used to sell advertising, which sells goods and services. Media sites like the Huffington Post, a high-traffic site that mixes in advertising with its native content is one example. 
4. Community-based. Sites like Facebook, which builds online communities based on shared interests, help marketers and advertisers promote their products directly to consumers. Websites will target ads based on users’ demographics and geographical location.
5. Fee-based. Direct-to-consumer sites like Netflix charge a fee so consumers can access their content. The site may also offer free, but limited, content while charging for most of it. The New York Times and other large newspapers often use a fee-based B2C business model.

Advantages:

Catalog Inflexibility: The direct ‘link’ has enough potential to showcase content information and other visual images that already prevail on websites belonging to multiple clients.

Quite interestingly, we’ve been given the liberty to adjust our e-catalog whenever it’s feasible, it includes the addition of the new products and making amendments in their prices accordingly. Unlike, traditional print catalogues, it consumes less amount of time.

It possesses various searching options to assort the items, corporate and division names, partners and even the manufacturer’s label to fulfill the desired needs.

Shrinks The Competition Gap: Minimal marketing and advertisement expense along with openings through which we can compete with high-profile companies in terms of price, quality and availability of the products

Unlimited Market Place: It exhibits unlimited marketplace by enabling the customers to explore and shop as per their convenience. It should be in our best interest that we can check on the desired services from home, offices and anywhere else without the stress of following a restricted timeframe.

We can purchase the products at a global level from every corner of the world. It means that the internet has broken the international barriers and has given us the opportunity to stash various items and equipment without the need of being at the shops in person.

24 Hours Store Reduced Sale Cycle: No need to make excessive amount of phone calls and descriptive e-mail messages.

Lower Cost of Doing Business: The B2C has reduced a number of business components including, employees, purchasing cost, mailing confirmations, phone calls, data entry and the requirement for opening up stores with physical existence. It has influenced and declined the transaction costs for the customers.

Removing Third Party Clients: We have the liberty to sell our products directly to the customers without the need of involving third party clients in the middle of the process.

Business Administration Made Easier: It has made it easier to record store inventory, shipment, logs and overall business transactions compared with the traditional ways of business administration.
These aspects of business are now being calculated automatically with utmost accuracy for the online entrepreneurs. Moreover, it provides real-time update feature through which we can explore all the latest happenings in our business.

Frees Your Staff: Runs our business setup without having the customer service and sales support department.

Customers Appreciate It: The sales process is handed over to the customers. Enhances customer-base and their loyalty level.

More Efficient Business Relationships: Building new and improved associations with the dealers and suppliers.

Work flow Automation: This process gives us an edge over shipping products in a timely manner. Furthermore, it automatically adjusts the stock levels and figures out location availability with a ballistic speed. Highly reliable security system with step by step verification, account entry and admiration mode to look after the business transactions.

The third party direct sales are backed up with familiar banking and accounting features that enable us to reach out to our vendors and perform internal business transactions accordingly.

Disadvantages:

Catalog Inflexibility: However, it is important to reorganize the catalog upon adding new information and products respectively.

Infrastructure: Even though, it provides a massive customer reach and breaks the international barriers by calling people out on the same platform, but the fact remains unchanged. According to a research, a total number of 26 million people in the world are deprived of using a stable internet connection. It should be in our best interest that some portion of the world is still unable to witness our value added services and this issue will take some time to resolve.

Competition: Indeed, the competition is severe since there are millions of online brands and services that can put our business at a stake in terms of customer base. There are certain companies that have managed to maintain a great market share giving them a chance to survive in the long run. We must understand the importance of introducing new and improved products in the world of internet to acquire the best response from the customers.

Limited Product Exposure: It is worth mentioning that in spite of rewarding the customers with ease of access and a unique level of flexibility for choosing products, the e-commerce has restricted the product exposure for the buyers over the internet. Most websites wouldn’t allow customers to go beyond the glamorous product images and their descriptions at the time of purchasing the product. It gives us an ideal that e-commerce is supporting ‘limited product exposure’, which is why some products disappoint the customers at the time of shipment and are sent back to the companies immediately.