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Lucid Gen › Marketing knowledge › Compare the difference between B2B and B2C markets

Compare the difference between B2B and B2C markets

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In Marketing, there are two types of markets: B2B (business to business) and B2C (Business to customer). These two markets have a lot of differences. In terms of price, distribution channel, customer audience and purchasing process…

The most visible in their name, B2C’s customers are mass. B2B’s customers are businesses such as schools, hospitals, organizations… To be more specific, we can compare the differences B2C and B2B according to the following criteria.

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Table of contents
  1. Fundamental differences between B2B and B2C
  2. Distribution channel differences between B2B and B2C
  3. Price difference between B2B and B2C markets
  4. Ending

Fundamental differences between B2B and B2C

Features B2b B2c
Number of customers Often more restrictable Large crowds
Purchase volume Many Little
The buying process Complex Less complicated
Relationship with NCC Sustainable Unsustainable
Geographical focus of the bridge More focused More often dispersed
Coordination characteristics of needs Appearances Little appearance

Distribution channel differences between B2B and B2C

Factors B2b B2c
Importance It is important because there is no inventory, or not really good contract, late delivery will gay out a lot of costly for customers Important because consumers value the prestige of retailers in the market
Channel control Channels are often controlled by manufacturers, although industrial distributors also play a controlling role Channels are often controlled by large-scale manufacturers or retail organizations
Channel length Usually short and direct, without intermediaries. Even if there is an intermediate channel it is still quite short Often long and through multiple independent intermediaries
Intermediate types There are two most common types: industrial distributors and manufacturers’ wilds There are many types (sales officers, retailers and dealers…)
Volume of goods sold through intermediaries The majority (more than 75%) products sold directly to customers, especially high-value products The majority of products are sold through intermediary channels, only 5% of products are sold through consumers
Guest features Less choice based on sentiment, on performance Retailer’s choice based on emotions and images, impressions
Inventories Focus on multiple channels Concentrated in retailers and retailers
Direct sales Very important, usually the basic distribution channel in industrial marketing Depending on the type of product that may be important or not
Important customers Frequent with large and intermediate customers Usually only with large intermediary channels such as retailers, retailers
Relationships with customers Close relationship between manufacturer and intermediary channel Relationships built on customer loyalty and satisfaction

Price difference between B2B and B2C markets

Factors B2b B2c
List price Not the final price Is the final price when the product comes to consumers
Actual price Not the list price
Is the price passed negotiated
Is the final price when making a trade
Is the list price
Discount price Cash discounts
Commercial discounts
Quantity discounts
End-of-term discounts
FOB & CIF Prices
The form of discount is more limited than B2B, rebates in quantity
Partnership Greatly affects the actual price
If the two sides have a good relationship, the negotiating price will be better
Less impact
Importance Less important More importantly
Bridge elastic Less sensitive to price Price sensitivity
Competitive bidding Very popular Less common
Price negotiate Appearing in all cases of purchase Fewer appearances

Ending

As such, B2B focuses on long-term cooperation with each other. However, it is a bit complicated in terms of the trading process. B2C, customers are public, the relationship is less close, favorable to buy and sell.

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