Question

Do some research to examine the differences between the business-to-business (B2B) and the Business-to-Customer (B2C) business models. What their primary characteristics? How do they fundamentally differ? Are there any similarities that are of note? How have electronic tools changed the relationship for better, and not?

Answer 1

B2B and B2C are the two business marketing models.

B2B (Business to Business) is a type of commercial transaction where the purchasing and selling of goods or services are performed between two business.

B2C (Business to Consume)r is another model where the business sells its goods and services to the final consumer. The products and services of these companies are consumed directly by the end user.

Difference along with characterstics of each:

BASIS FOR COMPARISON	B2B	B2C
Meaning	The selling of goods and services between two business entities is known as Business to Business or B2B.	The transaction in which business sells the goods and services to the consumer is called Business to Consumer or B2C.
Customer	Company	End user
Focus on	Relationship	Product
Quantity of merchandise	Large	Small
Relationship	Supplier - Manufacturer Manufacturer - Wholesaler Wholesaler - Retailer	Retailer - Consumer
Relationship horizon	Long term	Short term
Buying and Selling cycle	Lengthy	Short
Buying Decision	Planned and Logical, based on needs.	Emotional, based on want and desire.
Creation of Brand Value	Trust and Mutual Relationship	Advertising and Promotion

Similarity: A similarity between B2C, B2B is that as marketers we are always developing communications directed to people. Sales is the end-result for both the models.

Electronic Tools:

B2B sites are more informational and technical. There is less branding, or at least a different kind. It is not so much an emotional connection as an intellectual connection. B2C sites are more entertainment. They often change with promotions and products, and are made simpler for ease of navigation for the common people.