Monday, March 3, 2014

B2B? B2C?

What is a B2B what is a B2C?

Let me start with the B2B first.

B2B
This terms refers to "business to business" 
It describes the process of "transection" that comes from between businesses ONLY. Typically everything involves purchasing is already a business. But B2B is describing the business relation between manufacturer and a wholesaler, or between a wholesaler and a retailer but not to consumers.

And the process is much more complex than B2C. In B2B process, we can see business men dealing with another business men where items are mostly categorized assets rather than daily product. Such as machinery like photostate machine, vehicles (van), stock and more.

On the other hand, B2C means business to consumers. Which describes business men that sell products to the end user consumers. Items sold are normally daily goods product. 

As an example for the whole picture.
B2B is where retailers purchase 2sets of photostate machine from wholesaler, then the photosate machines will work for the retailer. These assets produce photocopy that will provide services for consumers. This is how the business works.

A further explaination can be explained through this table, which I found very useful, it talks about marketing, relationship, and the innovation.
It is a very good summary :)

Differences between B2B and B2C marketing
B2B B2C
Relationship driven Product driven
Maximize the value of the relationship Maximize the value of the transaction
Multi-step buying process, longer sales cycle Single step buying process, shorter sales cycle
Brand identity created on personal relationship Brand identity created through repetition and imagery
Educational and awareness building activities Merchandising and point of purchase activities
Rational buying decision based on business value Emotional buying decision based on status, desire, or price


Differences between B2B and B2C customers

B2B  buyer B2C buyer
often understands your product/service better than you do looking for the best price
wants or needs to buy products or services to help their company stay profitable, competitive, and successful often looks for trusted brands
has high interest in – and understanding of – your product will research the competition prior to shopping
interested in quality customer service interested in quality customer service


B2B and B2C Customer Service innovations
from B2B to B2C From B2C to B2B
provide value-based service add human touch when automate online interactions
promise service levels and deliver on them Exploit consumer-centric interaction channels and rich media
take a process-centric approach to customer service, allowing seamless and trackable collaboration generate revenue from marketing and sales through POS (point of service) captive marketing
digitize and integrate paper-based communications maximize customer service RAS (reliability, availability, and scalability)

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