The terms b2b and b2c came into Russian business practice from Western marketing. These types of markets differ both in terms of sales entities and in terms of marketing promotion.
What is b2b and b2c
The term b2b (Business to Business) literally translates as business to business. This is a type of informational or economic cooperation between legal entities. In this case, companies do not work directly with end customers, but with other businesses.
An example of b2b markets is such a supply organization model, when a manufacturer of any goods initially ships them in bulk to their distributor, who distributes them among dealers. Those. in this case, the goods do not go directly to retail outlets.
For example, manufacturers of stretch ceilings may initially ship their goods to the companies that install them. The end consumer, in whose apartment the stretch ceiling will be installed, is absent with such interaction. This also applies to PVC window manufacturers.
B2b companies also include those that work in the field of marketing or legal consulting or are engaged in advertising activities. In the Western sense, b2b is precisely the support of other business with various services.
Often, b2b refers to e-commerce systems that serve as procurement tools for large companies.
The main tendency of the Russian b2b market is that many manufacturers seek to develop their own retail lines of sales. Thus, they eliminate supply intermediaries and can operate in consumer markets with higher margins.
B2c (Business-to-consumer) literally means business for consumers. This is a type of commercial interaction that is aimed at private or end consumers.
It is also a form of e-commerce with direct sales to the private consumer. For example, an online store or sales through message boards.
Examples of the b2c market are retail stores of food, clothing, electronics and other goods.
Companies can simultaneously operate in the b2b and b2c markets. For example, shipping goods in bulk to another company and owning their own retail outlets.
Differences between b2b and b2c
The key difference between b2b and b2c is the end consumer of products and services. In the first case, these are companies, legal entities, and in the second, ordinary consumers.
Another difference is that the volume of b2b transactions is larger than b2c.
When developing a marketing plan, it is necessary to take into account a number of fundamental differences between the b2b and b2c markets. Among them, in particular:
- the volume of purchases - on b2b we are talking about large wholesale consignments of goods;
- products on b2b are often more complex in technical terms (equipment, machines), which do not require special promotion, but create a need for highly qualified managerial personnel;
- purchases on b2b are characterized by high risks, since the buyer risks not only big money, but also the existence of his business structure;
- it is the high risks that lead to a longer purchase time and a complex decision-making process;
- on b2b markets, the relationship between the buyer and the seller is closer;
- often b2b sales generate a derived demand for components, raw materials or accompanying services.
B2b and b2c also differ in marketing channels. Anything that is optimal for promotion in consumer markets can give zero results in industrial ones. In the practice of b2b markets, such promotion channels as participation in specialized exhibitions, advertising in professional publications, direct sales, direct marketing are most often used. Whereas in b2c advertising on television, radio, outdoor advertising is popular.
