Differences Between B2B and B2C

Differences Between B2B and B2C

Well, those are commonly used terms in the marketing world. You probably don’t know their meanings and disparity, do you? If you do not, the good thing is, you already know all that. In this article, we will take you through everything you need to know about the two words.

What is the Difference Between B2B and B2C?

What is the difference between B2B and B2C? If you are still wondering what the distinctions are between the two acronyms, we will break them down for you. There are many contrasts between the two approaches. Below are some of the comparisons:

  • Target: While enterprise-focused firms concentrate on doing business with other enterprises that need their services, this is not the case for consumer-focused firms. Well, the latter focuses on the final consumer. Most of the times, they reach the end users without necessarily going through any third party.
  •  Decision-making process: With regard to decision making, it is always fast and easy within the consumer-centric ecosystem. The reason is that there wouldn’t be any management meetings from two firms. The firm involved will go ahead to decide on how to deal with the consumers and then goes ahead to implement the strategy. On the other hand, decision making takes some time within enterprise-focused space because the two organizations will have to meet several times to agree on how they would operate.
  • Volume of transactions: Unarguably, the volume of transactions involved in end user ecosystem is massive because the company deals directly with many different consumers. But with enterprise-focused ecosystem, that is not the same.
  • Term of Contract: Very often, corporate behemoths engage in long-term relationships with their partners. Well, this is not often the case with the corporate ecosystem. For instance, a consumer who has just purchased a product from Amazon may never do so again. This is not the same as a company that has signed an agreement with another to always provide raw materials to them.       
  • Focus: It is important to note that while corporate companies focus on how to strengthen the cordial relationship that they have, B2C enterprises expend a significant amount of their energy on how to improve their products.

Definitions of B2B and B2C

What does B2B and B2C mean? Well, we will explain B2B and B2C meaning now. Essentially, B2B is a marketing term that simply means business to business. In this concept, a company targets another for business. Transactions could mean suppling raw materials for production, outsourcing a component of the business process, and providing other services related to the business.

In addition, the enterprises involved in this context could be supplier and subcontractors, retailers and wholesalers, manufacturers and wholesalers, etc. Despite the enterprises involved, the end-user has no activity here. So, this is how things work here. In this context, decision-making is always difficult because many transactions are involved. This is usually called B2B marketing strategy because the enterprises involved try to focus on the most optimized marketing channels with enterprises in focus.

Now, what does B2C mean? Well, B2C, on the other hand, is a marketing strategy where an enterprise targets a final consumer. The transactions that happen in this concept involve direct sales to the end-user. More often, the firms involved in this business concept are retailers. Given that it is a simple process, the decision-making is as easy as ABC. Also, the target market is usually massive, so the consumers are encouraged to buy directly from the retailer.

This is common among online retail malls, where consumers buy directly from the dealer. While the volume of transactions involved in the context is massive, each purchase from buyer is nothing compared to that of enterprise-related deals. Additionally, there seems to be a lot of data generated here as many transactions take place every minute.

If you are still searching “What is B2B B2C” and “What is B2B and B2C” all over the Internet, the table below will give you more insight in the subject.

B2B vs B2C Comparison Table

Basis of ComparisonB2BB2C
MeaningThe relationship that two or more enterprises haveThe relationship that an enterprise and the final consumer have
CustomerEnterprises End-user
Quantity of purchase per customerHuge Small
Volume of overall transactionsSmall Huge
Decision makingTakes time. It is always planned and logicalIt is fast, and it is based on emotions and desires
Nature of relationship Usually long term Immediate or short term

Conclusion of the Main Differences Between B2B vs B2C

Wrapping up, what are the differences between B2B and B2C? The thing is, since you have successfully got to this point, we believe that you now know the disparity between the two terms. While these are the two approaches that major companies adopt in marketing and doing business in general, there are companies that employ both strategies. Yes, it is uncommon, but they exist.

The objective is to significantly ramp up their revenue. Looking at B2B and B2C examples, we can point to business intelligence (BI) firm New Relic, which helps companies to analyze their big data. With respect to consumer-centric space, a classic example is the relationship that Amazon and its end-users (buyers) have. At this point, we firmly believe that you know the disparity.