Friday, May 8, 2015

What are B2B and B2C?

                                                What are B2B  and  B2C ?

Most small business sell to other businesses or to consumers and the acronyms B2B and B2C represent these relationships in abbreviated form. And there are exceptions, as a cleaning service could clean office space as well as privates homes.

Whom you sell to makes a different in what marketing methods are effective.

Business to business

B2B is shorthand for business to business. The products and services of the business are marketed to other businesses. Examples include advertising agencies, web hosting and graphic design services, office furniture manufacturers and landlords who lease office and retail space.

Business to business relationships are developed and ongoing, and the sales processes involved take longer than business-to-consumer relationships. B2B decision making may take place at more than one level.

For instance, the salesperson meets with the department manager, who then has to get approval from the business owner before the sale is closed.  Emotions have no place in B2B sales.

Business to consumer

The final customer is the consumer with a B2C business. Housecleaning services, restaurants and retail stores are example of B2C companies.  Websites that offer consumer products are B2C.

The B2C sales cycle is shorter. The consumer is encouraged to buy the product immediately. For example, a mother is looking for educational toys. She finds the site, reviews the product and buys the toy.

Purchases are made on an emotional bases as well as on the basis of price and product. It gets a little confusing when the product is marketed to consumers but goes through several steps to get to the customer.

By source: www.smallbusiness.chron.com

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