Pi M Square

What is B2B and B2C in Marketing

Marketing processes has changed a lot since the last two decades. But still there are some of the commercial transaction which has not changed its process and meaning. Let us discuss two of them now, about B2B and B2C here.

B2C- Business to Consumer : It is a process of selling products or services directly to consumers.

For Ex: Consumer directly going to the store and buys the required product. Here the business owner (Store Manager) or the product seller is having business directly with the consumer. Some other examples are coffee shop such as coffee day, Starbucks etc. Few other examples are McDonalds, Walmart and Amazon too.

“The retail transactions which occur directly between the consumer and business is B2C”.

Evolvement of e-commerce business, online transactions, and payment integrations is another example of B2C. Where the consumer is not interacting physically but there is a business happening directly between a consumer and an online business. Here the consumers are completing transactions virtually.

B2B- Business to Business : It is a process of selling products or services to other business.

Here the business is happening either between two companies or two business owners. To make it much clear let us discuss it with an example. Dell is the hardware manufacturer for the PC’s (laptops, Desktops, Monitors, keyboards, Mouse etc.), if Dell sells directly to other business owner (does not matter the size of the business), then it is called as B2B marketing, where the business is happening between two companies/business entities. B2B is majorly used in corporate business world. Growing no. of start-ups and small businesses does lot of B2B marketing.

Let me give another example: if an IT/software development company sells its product or services to other company or business entity then it is B2B, or else if it sells to the end user directly then it is B2C. Sometimes It may happen, that there is a middlemen involved in the selling or purchase process. Let me describe it through the below image.

Hope it is clear through the above images. B2B helps the business owners to do the business with the other business owners/companies whereas, B2C business happens with consumers directly.

After discussing the differences between B2B and B2C, we can conclude: It is important for every business to understand their target audience well so that they can draft the marketing strategies accordingly. B2B and B2C markets have different sales prospects. Understanding the transaction terms well helps you to crafting and executing your strategies.