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Difference Between B2B and B2C

B2B Vs B2CMarketing involves a broad spectrum of activities, whose ultimate goal is sales. B2B and B2C are the two business marketing models where sales are the end-result, but, this doesn’t make the two business models alike. B2B is an acronym for Business to Business, as the name signifies, it is a type of commercial transaction where the purchasing and selling of merchandise are performed between two business houses, such as entity supplying material to another for production, or entity providing services to another.

Business to Consumer is another model which is abbreviated as B2C, where the business sells its goods and services to the final consumer. Those companies whose products and services are consumed directly by the end user are known as B2C companies. There are many important differences between B2B and B2C, which you can see in the article below.

Content: B2B Vs B2C

  1. Comparison Chart
  2. Definition
  3. Key Differences
  4. Conclusion

Comparison Chart

Basis for ComparisonB2BB2C
MeaningThe selling of goods and services between two business entities is known as Business to Business or B2B.The transaction in which business sells the goods and services to the consumer is called Business to Consumer or B2C.
CustomerCompanyEnd user
Focus onRelationshipProduct
Quantity of merchandiseLargeSmall
RelationshipSupplier - Manufacturer
Manufacturer - Wholesaler
Wholesaler - Retailer
Retailer - Consumer
Relationship horizonLong termShort term
Buying and Selling cycleLengthyShort
Buying DecisionPlanned and Logical, based on needs.Emotional, based on want and desire.
Creation of Brand ValueTrust and Mutual RelationshipAdvertising and Promotion

Definition of B2B

A commercial transaction that takes place between two business organizations is known a Business to Business like supplier and manufacturer, manufacturer and wholesaler, wholesaler and retailer.

B2BThe decision making is quite difficult due to voluminous transactions. In B2B, the businesses are oriented towards making a good personal relationship with the other party to the transaction, as the size of the target market is small in size their major objective is to make customers from prospects.

For understanding B2B marketing, we will take an example of Shoe, How they come to the showroom and reach us? The leather, go through various levels to become a footwear. First of all the merchants will acquire raw material from the suppliers, after that cutting and machining is done, which is followed the making of the shoe and finally the finishing is performed on it. Then they are packed in boxes and distributed to the showrooms, which are available for us to buy. In this example, there are a series of transactions that occur for making a single shoe. B2B starts when the raw material is purchased and ends till it is distributed to the showroom.

Definition of B2C

The transaction, which exists between business and the final consumer is known as B2C. This may include any sales process where selling of goods and rendering of services by the company is done directly to the end user.

B2CThe decision making in B2C is quite easy because the transaction is a single step, and does not involve many persons. The target market is very large and there are millions of consumers, so the major try to make buyers from shoppers. Nowadays, the consumers can purchase goods online too, which is also a business to consumer transactions where a consumer can select the product online and order it, the company will deliver it at the residence of the consumer.

For example, Purchasing clothes from a mall, having pizza in Domino’s, pay for internet connection, taking beauty treatment from a parlor, etc.

Key Differences Between B2B and B2C

The points given below clarifies the difference between B2B and B2C:

  1. B2B is a business model where business is done between companies. B2C is another business model, where a company sells goods directly to the final consumer.
  2. In B2B, the customer is business entities while in B2C, the customer is a consumer.
  3. B2B focus on the relationship with the business entities, but B2C’s primary focus is on the product.
  4. In B2B, the buying and selling cycle is very lengthy as compared to B2C.
  5. In B2B the business relationships last for long periods but in B2C, the relationship between buyer and seller lasts for a short duration.
  6. In B2B, the decision making is fully planned and logical whereas in B2C the decision making is emotional.
  7. The volume of merchandise sold in B2B is large. Conversely, in B2C small quantities of merchandise are sold.
  8. Brand value is created on the basis of trust and personal relationship of business entities. In contrast to, B2C where advertising and promotion create brand value.

Conclusion

The two business models cover the complete business process when they bring together. B2B is mainly for those entities which sell their products to other business entities by adding value. If we talk about B2C, it is for those entities which are engaged in the sale of their products to the final consumer who is not going to resell them.

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Comments

  1. chitraksh says

    June 4, 2016 at 11:16 am

    Nice article. It provided me a lot of help to understand this concept.

    Reply
  2. Simon says

    November 18, 2017 at 6:02 pm

    Great Comparision!

    Best,
    Simon

    Reply
  3. Ravi says

    May 8, 2019 at 9:39 am

    Topic explained in clean terms, nice one.

    Reply
  4. Yuki says

    June 19, 2019 at 9:59 pm

    Easy explaination.

    Reply
  5. Steven says

    August 28, 2019 at 9:01 pm

    The first time I fully understood the differences and both concepts.

    Thank you very much!!!

    Reply
  6. bless says

    October 22, 2019 at 1:27 pm

    Thank you, this helps me understand the difference between these 2.
    Best regards.

    Reply
  7. ExportHub CN says

    November 25, 2019 at 2:42 pm

    Your blog is provides the Interesting information always.Thanks to sharing the great information..

    Reply
  8. henish says

    February 5, 2020 at 5:22 pm

    Well done Inforrmation

    Reply
  9. Dhriti says

    September 22, 2020 at 7:29 pm

    Finally after so much research I got a best website. Information is specific ,clearly mentioned, good presentation. Quality content!

    Reply
  10. Anil says

    August 14, 2023 at 2:21 pm

    well defined and simple to understand the basics

    Reply
  11. JackE says

    November 6, 2023 at 10:44 pm

    That is Great

    Reply

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