entire area of sales of all kinds of goods and services are divided into two major segments.First - this is B2C, the second - B2B.Quite often, having met these cuts, many are wondering: B2C - what is it?Or what is B2B?So, let's see.Description
market B2B
If literally translated transcript, you get "business to business", from the English business to business.The term refers to any B2B business, focused on the sale of goods or services to other businesses.As an example retailers, who sell their goods in bulk, trade organizations representing the major manufacturers and sellers acting alone, and so on. D. So, B2C market - it's what the B2B and what are their differences?
characteristics market B2B
for sales in this market segment is characterized by a number of features.Among them are:
- volume .B2C focused on selling business, therefore, companies operating in this segment, more interesting wholesale than retail.At a low value of the goods (compared to the one offered to the end user), these companies are making big money turnovers by volume of all kinds of products.A striking example - the company's distribution centers and dealers.
- The limited market. If we compare the number of customers in the retail market with the number of potential consumers in the market-oriented business, we can conclude that the latter is much inferior in number to the first.Naturally, this fact increases competition in the B2B segment, and requires a completely different approach to customers than the market B2C.
- informed decisions. Unlike conventional buyer, almost every businessman is suitable for any purchases for their business very seriously.This is primarily due to greater risks.Let's say you can buy a new batch of goods, and it will not be in demand among consumers.Or, for example, to buy a production line, but it will issue a marriage.In fact, a great many of these risks.And the businessman should take them into account, especially since the financial and time costs for the acquisition of goods in the retail market vary considerably.
B2C - what it is
With the market-oriented business, more or less sorted out, move on to the segment focused on the consumer.So, B2C - what is it?In English - business to customer, and translated into our mother - "business to customer".If you compare it to the business segment focused on selling to vendors, you can see that these concepts are radically different.
Key features for business customers
- assortment .Typically, sellers are working in the retail trade, trying to cover as much of the market.This is done by maximizing the range of goods sold and services provided.Perhaps the most striking example of B2C - is supermarkets.In these stores the consumer can buy almost anything he wants.Plus get additional services such as delivery, setup and installation of household appliances.
- customer value. The retail value of a customer is not very large, because the main money supply is due to sales to different customers.Therefore B2C segment is focused on the needs of the market as a whole, and in rare cases, take into account the needs of the individual.A good example can take any consumer goods, such as bread.This product has all the features that can attract maximum number of customers.And if one person wants to buy bread with a taste of mint, it is unlikely to get done.And no plant will not do just one loaf to satisfy the need of the client instead of the thousands.On the contrary: for example, the owner of the supermarket for some reason decided that the bread with mint flavor will diverge with a bang.He negotiates with suppliers - and they do it a trial batch of the bread.Naturally, for these experiments, the amount should be large.The situation is, of course, is quite unnatural, but, nevertheless, on it you can understand how different methods of promotion of products on the market with a focus on business and the consumer.
B2C: express delivery
As the commodity market, the market for services is different from B2C B2B.This applies to all business sectors.For example, B2C - express delivery.Focus on the consumer market obligate carrier has a very wide network of warehousing and transport.This is necessary because the company needs to reach the maximum audience and create the best conditions for customers.
Combining markets
If you look closely to many businesses, especially large ones, then we can understand that in a certain place wears a clear distinction between the two types of promotional items.The natural desire of the owner of any enterprise - getting more profits, and if given the opportunity to get an extra helping customers, no one will refuse.A good example would be all sorts of base construction materials.Either dealer firms that distribute products to retail outlets.
examples of companies working with different markets
Consider an example: there is a small organization engaged in the manufacture of metal products.In its work, the enterprise uses paint products.The owner takes it in DIY stores or on building databases, as for the purchase of goods directly from the manufacturer in his small volumes.Alternatively, the owner may find an organization that has a dealership agreement with the factories and that distributes its products at the most DIY stores.Given that these companies have a so-called minimum order, for example $ 100, ordinary consumers are automatically eliminated.But for the owner of a small business, this amount is acceptable, given that in the production process it uses these products.Working with the dealership company, he receives substantial savings, since in this case the price he pays for goods, almost equal to the purchase price of any store.
In this case, a small business owner acts as small consumer purchases because its volume is much less than that of the shops, and, nevertheless, he is able to take advantage of better conditions than other consumers.
difference in approaches
What is the difference B2B from B2C?Between these two markets there are quite significant differences, though at first glance they are very similar.These differences are enclosed in marketing approach, and in order to end consumers.
The main differences between the market for consumers on the market for sellers:
- Prudence and rational purchase decision.In B2C characteristic emotion, the need to meet the desires.
- volumes .If an ordinary consumer makes a purchase to meet their needs, the businessman buys to provide your business.Therefore, the volume of purchases could be enormous.
- price of the product. For the ordinary consumer goods cost plays a big role, but often not crucial.But in the case of B2B market difference of $ 1 per unit can result in tens of thousands throughout the party, so the value of the goods is paid great attention.
- sales techniques. If sales B2C great attention is paid media advertising, the sales in the B2B market to the fore personal contact with customers and working with databases.
Thus, we can conclude that corporate sales are substantially different from sales in the B2C, it is this separation that require completely different approaches and methods.
