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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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.
