What is B2B – The term Business-to-business (B2B), also called B-to-B is the model which focuses on selling products and services to other companies. It is a form of transaction between businesses, such as one involving a manufacturer and wholesaler, or a wholesaler and a retailer. Business to-business refers to business that is conducted between companies, rather than between a company and individual consumer.
What is B2C – The term business-to-consumer (B2C) refers to the process of selling products and services directly between a business and 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.B2C refers to the transaction conducted directly between a company and consumers who are the end users of its product and services.
In B2B (Business to Business)
- Market can be Single, Vertical or Niche.
- Orientation: Relationship Driven
- Time: Long Term/ Multistep Process
- Customer life time value: High
- Branding: Educational and awareness building activities
- Buyer Motivation: Rational/Based on business value.
- Sales type: Consultative
In B2C (Business to Consumer)
- Market are Large/ Broad
- Orientation: Product Driven
- Time: Short Term/ Single Step
- Customer life time value: Low
- Branding: Repetition, Imaginary, point of purchase activities, Merchandising.
- Buyer Motivation: Emotional( status, desire, price)
- Sales type: Convincing
