Business-to-Business (B2B) and Business-to-Consumer (B2C) models

Last week I introduced you to what this blog will be focusing towards i.e. understanding internet marketing. One of the main components of this is to understand the relationships defined in the online world between governments, consumers and, businesses. In doing so, in this blog, we will look at two of the many models. These are Business-to-Business (B2B) which defines the relationship of businesses with other businesses in processes and operations, and Business-to-Consumer (B2C), that of businesses with consumers.

Business-to-Business (B2B)

The model tends to businesses that work with other businesses. Through the internet, this can be observed through the web hosting, website designing and sales done between businesses.

The model is the working environment between businesses, how their relations go about, offline or online. As I am focusing towards the internet marketing aspect, it is necessary to highlight what goes in this model online.

A good example is of the company alibaba.com. Alibaba.com has successfully taken the role as a key supplier to other business by providing means for bulk purchases at cheap rates. Through providing businesses a platform similar to that of ebay.com, which assimilates the model of Consumer-to-Consumer (C2C).

Another component of the B2B model is the decision-making process which is established at multiple levels. This incorporates departments, representatives, suppliers and even the product/service. A business, unlike a consumer, has contacts with other businesses established to carry out operations and cannot be at a singular level of communication.

A feature relating to the layered decision-making process of businesses is the lengthy relationship with other businesses. an example is that of a multi-national company which chooses to purchase a certain product/service from another company. Not only will the purchase take time to induct as a result of the aforementioned decision-making, it will also mean a specific deal has been established which may be spread over a time to cover, in the case of an order placement.

Business-to-Consumer (B2C)

This is the most commonly known form where you have the business and its customer. Where B2B focused the relation between businesses, B2C does not hold the same structure. It is not a two way set-up and primarily has a one-sided product/service flow. Furthermore, the Customer is not a business, rather the common man.

A good example of an online B2C is that of Amazon which provides shoppers with a means to purchase products. The decision making process is limited to the consumer only and the relationship does not engage on multiple levels. Another aspect of B2C is that in it, the sale cycle is shorter and encourages the buying immediately.

It would be plausible to say that B2B helps lead to B2C as that is the flow chain in managing the products/services. Both need to work simultaneously, though focused in different aspects, to operate and achieve the final target of sales.

References:

Cohn, C., 2015. Differences In Selling B2B Vs. B2C. [Online] Available at: https://www.forbes.com/sites/chuckcohn/2015/06/16/differences-in-selling-b2b-vs-b2c/2/#6f3c6fec4de0 [Accessed 24 August 2017].

Smallbusiness.chron, 2017. What Do B2B & B2C Mean?. [Online] Available at: http://smallbusiness.chron.com/b2b-b2c-mean-56101.html [Accessed 25 August 2017].

Thebalance, 2017. Understanding the Differences Between B2B and B2C Marketing. [Online] Available at: https://www.thebalance.com/b2b-vs-b2c-marketing-2295828 [Accessed 25 August 2017].