The acronyms B2B and B2C are very well known and business models, but do you really understand what they mean? They have different meanings, advantages and applications.
What is B2B and B2C
The acronym B2B stands for “Business to Business”, it refers to companies that sell to companies. The target audience in this case are executives, entrepreneurs, business influencers, suppliers and others.
As customers are legal entities, they make the purchase to renegotiate what was purchased. Operations can be done with food supplies, outsourced services, consumer goods for companies, software and many others.
B2C is the acronym for “Business to Consumer”, that is, transactions made from companies to end consumers. It is the most common and well-known model in the market, where the company sells products or services directly to an individual.
It covers retails, food, apps and many others. It is aimed at the masses and seeks to meet the basic needs of its audience.
Difference between B2B and B2C
With all the information and definitions of the concepts, it is possible to understand the difference between the two, which is mainly characterized by the target audience for which the business model is intended.
B2B is about business-to-business transactions, and B2C is business-to-consumer. In addition to the difference in target audience, they differ in the marketing strategies and sales models used to reach their consumers.
But that alone does not explain all the differences in strategies between these business models. We can identify distinctions in relationship time, decision criteria, communication channels, sales time and people involved in the purchase process.
The communication channels used are generally similar but differ in the means of use. They are blogs, social networks and marketing emails, but in B2B the production of content is done in a more segmented way, while in B2C the content is made for mass and focused on relationships.
The decision criteria are also an important difference to note, since in the business-to-business model, negotiation is always based on reason, while in the end-consumer model, the purchase is usually made by emotion.
The relationship time, negotiation and people involved in the B2B buying process differ from the B2C we are used to. In B2B, the relationship and negotiation time are longer and there are many more people involved in the purchase process.
B2C is a model characterized by the immediacy of purchase, relationship between company and customer, in addition to recommendations, also called word of mouth marketing.
B2B has some key elements as well, such as data needed for content production, decision makers are personas, and the lifespan of products or services is important.
Examples of B2B and B2C
Moving on from concepts and differences, it is much simpler to understand the examples in the best way.
B2B sales are made for consumption, transformation and resale. For example, a supplier that sells parts to an industry, that sells its products to a store, that resells them to the final consumer.
The sales process in this case is also a little different, it is more segmented and focused on meeting the needs presented by decision makers. It should be something that serves the customer for a long time or has a long shelf life.
A practical example of this model is the company VR alimentation, which provides benefits solutions for employees.
B2C, on the other hand, is found in basically all the stores and establishments we visit on a daily basis. Its model is focused on retail, wholesale and service provision.
Its sales processes are focused on attracting the mass and recommending customers. In addition to the shortest possible decision time by the customer. An example that can be mentioned are brands and companies like Schutz and Corello.
Advantages of the application
By applying B2B it is possible to generate high volume sales more often, establish a long-term relationship with your customer, the sales cycle is well defined and have a good average ticket.
The advantages found in B2C involve a simpler sales process, purchases driven by emotion, high frequency of application and a much broader market.
Conclusion
Now you are definitely on top of almost everything that involves B2B and B2C in the business and marketing world. The production of content for a specific audience in these models is very important, as it is what will draw the attention of customers.