B2B and B2C are the two very common business models upon which every business entity is based. These two business models are sometimes used interchangeably by many people but there is a clean and clear difference between them. So, in this blog, we will get to understand the complete concept of these two business modules. The content of the blog is as follows.
Definition Of B2B
B2B marketing known as business-to-business marketing refers to the commercial transaction that involves selling goods and services of one business entity to another. In more simple words, the business transaction that takes place between two businesses is known as B2b marketing/business. Such kind of business model is generally utilized by large business corporations or companies.
In B2B marketing, the businesses aim at making good relationships with other businesses in the transaction, so as to approach the excellent outcome and results for their companies. Further, in B2b marketing, the purchaser’s decision to purchase anything is based on logic, keeping eye on ROI. Therefore, marketers should guide their customers about the benefits, features, and other factors of their goods and services.
Definition Of B2C
On the other hand, B2C marketing refers to the business transaction that takes place between a business and the final consumer. In such type of business model, the selling of goods and services by a business entity is done directly to the end-users, rather than to the companies. Moreover, in B2B business, the decision-making activity is quite easy as it involves a single-step transaction and less number of persons.
The B2C business model mainly focuses on the quality of goods and services as well as excellent feedback from the customers on them. If a consumer purchases goods online, it can be also known as a business-to-consumer(B2C) transaction. Ordering pizza, purchasing clothes from a shopping mall, buying eateries, etc are examples of B2C business.
Difference Between B2C And B2B(Table)
|Basis For Difference||B2C||B2B|
|Definition||It refers to the business transaction in which a business sells its goods and services directly to the end-users/consumers, rather than to a business.||If the selling and buying of goods and services take place between two business entities, it is known as B2B business model.|
|Target Audience||Individuals or consumers||Businesses|
|Focus On||The quality of the products||Relationship|
|Buyers Decision Of Buying||Based on requirements, emotions, and wants.||Buyers in B2B consider ROI, logic, and plans.|
|Buying And Selling Term||Short and quicker||Lengthy and slow as it involves decision-making by many personalities.|
Key Differences Between B2B And B2C
The major difference between B2B and B2C is as follows.
- B2B marketing known as business-to-business marketing refers to the commercial transaction that involves selling goods and services of one business entity to another. On the other hand, B2C marketing refers to the business transaction that takes place between a business and the final consumer.
- The customers in B2B are businesses while the customers in B2C, are consumers.
- While B2B primarily focuses on relationships with business entities, B2C focuses on the products.
- In B2B the relationships between the two business parties last for the long term. On the other hand, in the case of B2C, the relationships between buyer and seller last for comparatively a short period.
- In B2B, a large volume of goods/merchandise is sold. On the other hand, in B2C a small volume of merchandise is sold.
- In B2B, the brand value is made only on the basis of confidence, trust, and the relationship between the two businesses. On the other hand, in the case of B2C, brand value is created with the help of advertisement and promotion.
So, we can conclude that both B2B and B2C are two very common business models that ultimately focus on making a profit and increasing sales for different businesses. B2B model is for those business entities that buy stuff, add value to them, and then resell them to other businesses. On the other hand, the B2C model suits only those businesses that are engaged in the selling of goods and services directly to the end users or consumers.