What is B2B and B2C sales? What is B2C sales by B2b clients what

More than one businessman has been burned by not taking into account the differences in sales models between commercial firms, government organizations and end consumers. We will not repeat their sad experience, but consider what b2b, b2c, b2g and c2c are, what is the difference between them, and how to organize a business in each of these segments.

B2b, b2c, b2g, c2c - what is it? The names of the business areas described in our article come from English-language business usage. These are sonorous abbreviations that allow you to literally describe an entire market niche in just three characters.

B2b – what is it?

The term itself is an abbreviation for the English “business to business”. This is a commercial activity in which the clients are other companies and entrepreneurs. This includes the notorious “production of means of production”, and services for business, etc.

B2B companies can be any size. For example, consumers of products from a large conveyor production of hair clippers and other similar equipment can be very small hairdressing salons. And a company consisting of ten programmers can supply entire corporations with exclusive software.

More detailed and illustrative examples will be below.

B2c – what is it?

This abbreviation comes from “business to consumer” - “business for the [end] consumer.” It refers to the sale of goods and services to individual clients for personal consumption. A food hypermarket, an online store or a small legal advice office for the public is all b2c. This area is characterized by a large number of clients with a relatively low average bill.

B2g - what is it?

The term “business to government” refers to the sale of goods and services to government agencies and institutions. In Russia, commercial relations between the private sector and the state are built through the public procurement system. Each step of the supplier is regulated (depending on the customer) either by Federal Law No. 44-FZ (“On the contract system in the field of procurement of goods, works, services to meet state and municipal needs”), or by Federal Law No. 223-FZ (“On procurement goods, works, services by certain types of legal entities"). These documents describe in detail procurement procedures, their methods, capabilities and limitations. b2g is characterized by the following features:

• tender mechanism of business relations;
• high level of stability of cooperation (customer is reluctant to change supplier);
• complex decision-making mechanism for the customer;
• in competitive areas, administrative resources can be used (compiling orders for specific suppliers);
• specific methods and mechanisms of calculations (depending on the budget process).

C2c - what is it?

The abbreviation c2c stands for “consumer-to-consumer” (consumer to consumer). This includes both online sales and real-life trading, where individuals act as both seller and buyer. Officially, the seller is most often not an entrepreneur (except for cases where c2c imitates b2c).

A feature of the C2C segment is the participation of third parties - owners of trading platforms - sites on which the seller can display goods and the buyer can purchase, newspapers for free advertisements, etc. In Russia, these are Avito, Yula, “From Hand to Hand” and other similar resources.

How do sales areas differ?

The most popular types of b2b

The scope of “business to business” is very wide. The most popular directions are:

The most popular types of b2c

We use business-to-consumer services every day. Their range is quite wide:

• Stationary retail outlets– All types of stores fall into this category. And “Magnit”, and “Pyaterochka”, and “Auchan” with Ikea, and “Perekrestok”, and the cigarette stand on the corner - all this is b2c.
• Mobile retail outlets- This is most often a small business that sells on the streets in provincial settlements. We arrived in the morning, laid out the goods, packed up in the evening and moved on. In villages there are still auto shops that replace stationary trade.
• Public catering– this includes both fast food chains such as McDonald’s or Burger King, as well as all cafes, restaurants and canteens, including in industrial production. Wine bars and snack bars too.
• Services for the population– legal advice, notaries, consumer services from shoe repair and tailoring to key making, repair and setup of digital equipment, photo studio, and so on.
• Internet commerce– all official sales to individuals on the Internet. These are online stores, services of websites with advertisements, all paid online services for end consumers.

The most popular types of b2g

Since the main way of “doing business for the state” is participation in government procurement, types of b2g are determined precisely by competitive procedures:

• Sale of goods and services to state and municipal organizations. The range of government procurement is very wide - from consulting services to luxury cars, from organizing coffee breaks at conferences to school meals and medications.
• Rent of premises and land plots in state or municipal ownership. This is a mutually beneficial business: the state receives income from unused space and territories, and entrepreneurs do not have to invest in the purchase of offices and industrial facilities (renting is much cheaper).
• Public-private partnership - in the field of housing and communal services, road construction, education and other areas. Usually the state provides tax and other benefits, land plots and the opportunity to receive part of the income from the results of work. The business acts as a contractor and subsequently receives a share of the profit from the use of the facility established by the contract.
• Concession agreements are the use of state or municipal property by business on the terms of investing in modernization and repairs. Most often, concession agreements are concluded for the restoration of historical buildings, which are then used by entrepreneurs for the purposes of their business. The state also grants concessions to energy and utility capacities so that the concessionaire company invests in their repair, and in return receives the right to collect money from consumers.

The most popular types of s2c

The interaction of private individuals in the c2c scheme occurs through intermediaries, therefore the types of such commerce depend on the type of this intermediary.

• Electronic resources for organizing sales - the well-known Avito, Yula, Avto.ru, BuyProdai and many, many others. Here, the sellers are individuals who either sell a product or service one-time, or actually engage in business without registration. End consumers also buy – most often for personal use. We would like to specifically mention electronic resources that help in the provision of services in the C2C segment. For example, the famous BlaBlaCar service: a driver who wants to slightly reduce his travel expenses gives a ride to a passenger, who also saves time and money. And the service helps them find each other.
• Auctions (on the Internet or regular ones, with a hammer) operate on the same principle as ad sites, only the intermediary provides more services: product evaluation, sales support, security. The purchase and sale transaction takes place in a strictly defined place (in an auction hall or on an online auction site - for example, Ebay).
• Advertisement services in newspapers and electronic media are the simplest form of the C2C segment: the seller publishes an advertisement, the buyer contacts the seller directly, the transaction takes place in a place convenient for both parties.

A special feature of c2c is the ability to quickly change roles: today you are selling a car through Avito, tomorrow you are purchasing skis from yesterday’s buyer.

In the business-to-business segment there are several rules, without knowledge of which sales are unlikely to be effective.

Rule 1. The purchase of goods or services for business is usually caused by necessity (unlike the b2c segment, where the subjective desires of the client are more important). In b2b marketing, marketing is aimed at making a decision when a request has already been formed. What does it mean? The fact is that the purpose of purchasing a product or service is not to satisfy a subjective need, but to derive benefits later.

Rule 3. In the b2b segment there are very marginal niches that bring high profits. When organizing sales, profitability has at least equal importance with volumes, and often prevails. Sometimes it is more profitable to conduct one large transaction than a hundred small ones.

The algorithm for building a b2b business looks like this:

1 Analysis of the needs of potential clients.

To do this, you need to have experts in your company in the field where you plan to build a business. Or possess insider information received from friends, acquaintances, employees of key companies in the industry. Clients' development plans or problems that hinder their development need to be known with a high degree of certainty. An attempt to identify the needs of a partner business in a speculative, logical way often leads to mistakes, after which further actions turn out to be meaningless - they simply will not cooperate with you.

2 Determining a product or service that will find demand among entrepreneurs.

Let's say you are going to sell computer software and provide support services. Your focus will be on companies whose development requires, say, the introduction of more effective CRM systems. Your task will be to shape the product in such a way that it can be used for different types of customers. Some will need both the software systems themselves and the work involved in installing and troubleshooting them. And most large companies have their own specialists in maintaining information and management systems; they will need software solutions and one-time staff training. Accordingly, your arsenal should have offers for both types of clients.

It is important that this is not just a list of works with a price list, but a package of services that is understandable to the consumer. This will also give you advantages: it will allow you to include higher-margin goods or services along with less profitable ones, and on average the package will give a good level of profitability.

3 Formation of a marketing strategy.

Options for promoting a product or service to the market depend on the product and your capabilities. Having a large sales department allows you to reach a large number of potential customers, group them by type of product in demand and target the product to a whole group of buyers. If there is only one sales manager on staff, it makes sense to focus on working with several large clients and not scatter resources.

Research your competitors. This is necessary to position your product and highlight its advantages. Keep in mind: in the B2B industry, uniqueness is valued less than functionality and reliability.

4 Organization of interaction with customers.

In b2b, clients are not found by advertisement. To build a reliable and stable business, you need to look for specific companies interested in your product and negotiate with decision makers (there is even a special abbreviation - LPR). Cold calling is not very suitable in this case. Finding clients at exhibitions, technical conferences and other specialized events is more effective. Here you can not only communicate with decision-makers in companies, but also understand the real needs of a business in a particular niche. Hiring specialists with experience (and most importantly, connections) in large companies as consultants or as staff has a good effect. This will allow you to reach employees who are responsible for procurement budgets and make decisions on interaction. In some areas (for example, equipment sales), mailing catalogs, booklets and other promotional materials is effective.

Direct negotiations cannot be conducted without preparing for them. You need to clearly understand the decision-making mechanism in the company with which you intend to cooperate.

As the first transactions are carried out, key clients will begin to be identified. They need to be provided with most favored nation treatment. The tools of this mode are:

• Discounts for strategically important partners are not just a one-time price reduction, but a system that encourages further purchases. For example, a percentage of the cost that increases with the volume of purchases from you. Or a personal discount on the least marginal product. Or free shipping. And so on.
• Personal service – the client will be pleased if you allocate a separate manager for him and provide an immediate response to any requests (including through automation of interaction).
• Customer training – if you supply, for example, equipment, you can organize staff training, seminars, webinars, online consulting, etc. for key customers. This will give you even more confidence.
• Branded gifts - promote and establish your brand among the client. Let you be everywhere - in workshops, in offices, on the manager’s desk.
• Successful cases of cooperation - if you cite a key partner company as an example of successful cooperation, this will prove your special relationship with the client and stimulate his loyalty.

How to effectively organize sales in the b2c industry

Products or services in this segment are purchased for personal consumption, and a sales strategy is formed on this basis.

Rule 1. The most important incentive to purchase a product/service is the consumer’s desire. Therefore, in b2c marketing approaches are considered decisive for success. The task is to convince the buyer that he wants to buy just such a product and right now. The emotional factor prevails over the rational. The buyer’s real need for a product or service, unlike b2b, is significantly less important.

Rule 2. There are several orders of magnitude more private consumers than businessmen (who are also end consumers). Therefore, b2c sales are aimed at mass demand and are as universal as possible; As an example, we can name large retail chains, where the assortment, merchandising, and staff work style are standard. There is no need to adapt to a specific buyer; adjustments are made to entire groups of consumers (for example, for pensioners, both products and marketing are different when compared with sales aimed at young people).

The algorithm for building a b2c business is as follows:

1 Business model positioning, brand development and promotion.

Competition in b2c is very high, you need to find a twist that customers will appreciate. Bring to market a brand that will be a marketing tool in itself. For example, you decide to create an online children's clothing store. There are dozens of large and not so large market players working in this niche, and in order to stand out from the crowd, you will have to come up with something more interesting than just another “pants for babies.”

2 Determining the target audience.

These are not general words; in b2c, success directly depends on correct customer segmentation. In relation to the same online children's clothing store, you need to decide whether your main customers will be mothers with small incomes, business women accustomed to buying only the best, or are you going to satisfy demand in several consumer niches at once? Depending on this, a marketing and advertising strategy is built.

3 Stimulating the audience to make purchases.

It has already been said above that the emotional factor is of utmost importance for sales to end consumers. There are two strategies for stimulating purchases: active and passive.

At active strategy the seller himself looks for customers - through online mailings, advertising on social networks, sales on the streets, in transport and other places visited by potential buyers.

Passive strategy typical for a business in which the buyer is interested himself: the sale of utilities, medical services, energy resources, and other products in conditions of low competition. If the buyer comes himself, why invest in advertising?

For a highly competitive environment, the so-called triggers are important - psychological elements that clearly and definitely encourage you to make a purchase. This is the message “we will do it for you” (product comparison service, price calculator, etc.); association with other customers (“5,000 people have already bought this product. Are you with us?”) or emphasizing individuality (“Our product is not for those who need “popular offers”). Triggers “Greed” (discounts, promotions, sales) or “Hurry” (“Have time to buy before...”) also work well.

4 Building a sales system.

If you are going to sell in a “real” store, think about merchandising (product display), easy navigation around the sales floor, availability of information, and competent and informative price tags. There is no point in starting sales without organizing.

For an online store, a convenient interface, a simple order form, fast confirmation, reliable packaging and, of course, an ideal delivery service are important. Information spreads quickly on the Internet; if you miss several orders or send something that is not what the client wanted, then the stain on your reputation will take a very long time to wash off.

If you organize online legal advice or other online services, make sure that users receive answers to their requests within the specified time frame. This requires a functional system for recording applications, and it is not always possible to use Excel tables.

How to effectively organize a business in the b2g field

Since all trade with state and municipal organizations is carried out using the government procurement website, you will need a specialist who knows the functionality of this resource perfectly.

The essence of b2g is to search for suitable tenders, quickly analyze notices of planned purchases and draw up applications. Organizing a business in government procurement includes several stages:

1 Determination of procurement selection strategy. This could be participation in as many tenders as possible (you’ll be lucky somewhere) or a strict selection of the most profitable lots.

2 Selecting a tender based on your physical capabilities as a supplier. If it is possible to supply stationery from Kaliningrad to Vladivostok, then providing catering services over long distances without organizing a branch of your company on site is unrealistic.

3 Determining the minimum possible delivery margin(in simple terms, you calculate how much you can reduce the price by participating in the auction). It is important to make these calculations in advance, since in the hustle and bustle of an electronic auction you can make a mistake and then have to work to your detriment.

4 The most accurate calculation of the cost of work, goods or services in the selected tender. This must be done before submitting an application in order to understand, taking into account the minimum margin, whether there is a chance of winning or not. It is better if an experienced professional economist calculates the cost.

Separately, we note that business in the b2g segment requires a very careful and responsible approach. Failure to fulfill the contract will automatically put you on the list of unscrupulous suppliers, and you will no longer be able to participate in government procurement - only if you close this company and open a new one.

How to effectively organize C2C sales

As already mentioned, a C2C business usually involves a third party - offline, or more often - an online resource where the seller meets the buyer. The organization of C2C sales depends on the functionality of the chosen trading platform and on what task the seller sets for himself.

1 One-time sales of your own belongings/car/real estate. In this case, the most important thing is to correctly compose an ad and place it on sites like Avito, Yula, and social networks. Competently means clearly identifying the benefits of the product, its characteristics and noting that you are not an intermediary, but the owner. Since goods in this segment are usually sold second-hand, the seller’s task is to maximize the value of the item in the eyes of the buyer. On Avito there are often advertisements in the style of “I’m selling my car because I don’t need it. I bought it as a cart for transporting goods to the country, it has been sitting idle for three years, I thought for a long time whether to take it for scrap, but decided to sell it.” Such texts do not motivate to buy, but they are very motivating to reduce the price: if the seller could easily do without this car for three years, then, having given it away for next to nothing, he probably won’t worry either. There are many ways to present an item as meaningful to a buyer. If these are used clothes, you can appeal to the quality (“they don’t do this now”), to the brand, to a rare design, or to the difference in purchase and sale prices (“the shoes were bought a year ago for 10,000 rubles, I wore them a couple of times, I’ll give them back for 2,500 "). The positioning of used electronics can also be based on the higher quality and reliability of previous generations of gadgets and devices, on a significant reduction in price, and on the opportunity to get a copy from the top series for the price of a new budget laptop or smartphone.

As a rule, administrations of services or groups on social networks strictly monitor user texts for compliance with the “one ad – one product” requirement, so this rule should not be violated (otherwise the service may refuse to publish any ads from the violator’s account). Since the flow of posted ads is large, yours will quickly leave the first page, and it is not a fact that the user will scroll to it. “Raise” an ad (re-display it on the first page of the search) or pin it (determine a permanent place at the top of the list for a day or a week) – this is usually a paid service. It makes sense to use it if there is a demand for the product (there were calls after the first placement) or the cost of the product is significant compared to the cost of the service (sale of real estate, car).

2 Sales of your own services and handmade goods. This is closer to business and to the essence of the C2C segment. If you are a good plumber, electrician, or are a master at making soft toys, why not use your skills for additional, or maybe main income? The sales strategy in this case should be like this:

3 B2c business under the guise of c2c

Let's consider this scheme using Avito as an example. Let's say you decide to resell car parts - new and dismantled - on an ongoing basis under the guise of one-time sales. From a moral point of view, this is not entirely beautiful, but as a business it will do just fine. The development algorithm will be like this:

I. Open a private account on Avito. Let it be real - to your phone number, to control the process.

II. We are drawing up the first, basic ad, which will be posted on Avito throughout your sales. We select one of the spare parts that is in greatest demand. We write the text taking into account the analysis of competitors and our audience, insert keywords - everything is the same as when selling our own products. If you are selling new spare parts, it is possible (though not necessary) to come up with some kind of intelligible explanation for how this product ended up in your possession. “I bought it for myself, but had to sell the car,” “I was clearing out the garage and found it” – something like that. There is no need for a legend for used spare parts. At the end of the text, add a note: “I will also sell other spare parts for such and such a make of car.” Be sure to take beautiful photos (or take them on the Internet, but without watermarks and in an adequate interior - it’s like you’re selling yours).

III. We place an ad, select the “Quick sale” mode, or even better – “Turbo sale”. In the latter case, the product will hang on the first search page for a whole week. It is recommended to publish an ad on Monday morning in order to completely capture all segments of the audience we need within 7 days.

IV. Now we are faced with the task of maximizing sales. This cannot be done from one account - on Avito the system blocks mass publication of advertisements. So, you can go two ways. If you have an individual entrepreneur, or you are the founder of a legal entity (no matter in what area), you can open a commercial account for the company. To do this, you need to enter a company or individual entrepreneur. As a last resort, you can try to buy a commercial account - for example, on http://accounts.net/ or on any similar site. No one will check you. After registration, you are allowed to publish up to five free advertisements in one category.

Another way is mass registration of individual accounts. To do this, you don’t need to purchase a bunch of SIM cards - there are much less expensive SMS activation services. or each account activation will cost you only 4-5 rubles. It is enough to register 10-15 pieces.

V. We are making five more advertisements for the sale of other spare parts. If the account is commercial, use the same template so that the buyer understands that these are advertisements from the same seller. The advertisement here should not be similar to the one you advertised from your personal account: if Avito detects similar texts, it will display a message about possible duplication and reject new advertisements.

Texts from individual accounts will have to be made unique in each ad. If any of the accounts is blocked, a backup one comes into play. The biggest difficulty is to place all advertisements on one or at least two phone numbers. As an option, in some advertisements you can offer to write to your Avito account, and give your phone number in the response letter.

VI. We are starting to rotate ads. We periodically turn off some, and turn them on after a few days (at the same time they rise in the search), we invest money in others and order paid raising and securing. As the business model develops, we identify the most effective ads, invest specifically in them, and the rest of the advertising has a supporting function. You will have to put in a lot of work, but the result can be very good.

Conclusion

Depending on the seller and buyer, all business models can be divided into four main areas.

• b2b – sale of goods and services of one commercial company to another;
• b2c – sale of goods and services of commercial companies to individuals for personal use;
• b2g – sale of goods and services by commercial firms to state and municipal organizations;
• c2c – sale of goods and services by one individual to another

Each of these models has its own goals, supply volumes, average transaction amounts, and so on. If business representatives make purchasing decisions based on an accurate calculation of their needs, then individual buyers are more often guided by emotions. If in b2c the seller focuses on entire groups of end consumers, then in b2b it is important to determine the needs of specific customers.

Sales success depends on the right choice of a marketing strategy that is suitable specifically for your business segment. B2g does not require high-profile advertising campaigns (it is much more important to correctly prepare tender applications). For b2c, on the contrary, advertising is needed like air - massive and varied. And in c2c you need to skillfully combine advertising aimed at a specific group of buyers and technical methods of promoting a product.

Each business segment has its own pros and cons, in each you can earn good money (in a business oriented towards business or government agencies - more, in online trading through trading platforms - less), and in any one you can end up broke. We hope this article will help you define your strategy correctly and achieve success in your chosen market niche.

Video for dessert: Mom doesn’t want to take her daughter’s unusual friend for a walk

Business-To-Consumer (B2C, b cost to the consumer) - marketing activities, the purpose of which is direct sales of goods and services to the consumer.

B2C (business-to-consumer) is a term denoting the commercial relationship between an organization (Business) and a private, so-called “final” consumer (Consumer). The consumer buys a product to satisfy individual needs. The object of interaction is a product or service, and the subjects are: a company selling a product (providing a service), on the one hand, and a private buyer, on the other hand.

B2c relationship system is one of the links in the chain of modern business processes, and this link builds direct, personalized business relationships: “Business-client”. B2C allows direct sales with a minimum number of intermediaries. Elimination of intermediaries makes it possible to set competitive prices locally and even increase them, eliminating the number of intermediaries, which naturally leads to an increase in trade margins.

B2C sales is a term often used to describe the activities carried out by a retailer. B2C companies use special trading and marketing technologies aimed at mass buyers, which are called retail technologies.

B2C Marketing characterized by the fact that:

• the company is a manufacturer of goods and services focused on interaction with the end consumer;
• the consumer buys a product that satisfies individual needs and makes decisions individually;
• the buyer is not an expert in the product;
• In addition to the rational one, the emotional component of the purchase is important;
• the sales process cycle is very short;
• relatively low importance for the business of an individual buyer, but at the same time, the effect of scale is significant due to the mass of sales;
• the need to use mass communications;
• Sellers use the same type of solutions and “marketing templates” in the sales process.

E-commerce - b2c form of sales, the purpose of which is direct sales to consumers through electronic means of commerce - online stores.

Number of impressions: 45921

This time we will talk about the B2C segment: the specifics of interaction between organizations and their clients, the role of assortment and mass sales.

Definition and explanation of the abbreviation

Abbreviation B2C (from business-to-consumer) serves to designate the commercial relationship that arises between the selling organization and the final buyer (which, as a rule, is a private individual).

The buyer purchases the goods for himself. The product (service) in this situation is the object of the business, while the consumer and the selling organization are its subjects.

Relationships in the B2C sphere are one of the links that make up the chain of business processes in modern commercial activities. The essence of B2C is to build a direct, personalized relationship between business and customer. This type of relationship involves direct sales and the desire to reduce the number of intermediaries. The fewer intermediaries, the easier it is for organizations to ensure competitive prices locally and control price fluctuations. These measures are aimed at increasing sales margins.

Distinctive features of the B2C market

• The role of assortment. Businessmen who have chosen retail trade as their area of ​​activity are always interested in expanding the range of services and goods: this way they extend their influence to all market segments. This process can most easily be traced using the example of supermarkets, where consumers can buy literally anything they want. In addition, here he will be offered related services - for example, delivery, installation and repair of kitchen equipment or computer equipment.
• The role of the individual client. It should be recognized that in this business segment the role of the buyer is small, since the merchant makes a profit due to large sales volumes, which are provided by different consumers. In other words, he (the businessman) is more concerned about the needs of the market, rather than a specific client.

  A good example is beer. Low alcohol is always in demand. The beer that is currently displayed on supermarket shelves is quite satisfactory for the majority of consumers. And if some connoisseur returning from abroad suddenly wants “something like that,” his requests are unlikely to be satisfied. Not a single manufacturer will brew (or sell) exotic “for the elite” to the detriment of the interests of the target audience. However, if a business owner decides that unusual beer can attract new customers to his store, he will invite one of the suppliers to brew a new variety and immediately purchase a large batch. Of course, this doesn't happen often. But it’s immediately clear that the leaders of B2C companies think big.

About B2C sales

B2C sales- This is exactly the activity that retail businesses engage in. They use special business methods and specific marketing technologies aimed at the mass consumer. They are also called.

Key features of B2C marketing:

• orientation of the manufacturing company towards interaction with the end consumer;
• the product is purchased by the client for himself, and the decision about the need to purchase the product is made by him independently;
• the client is not an expert;
• when buying a product, the client is guided not only by his needs, but also by his emotions;
• the sales cycle is short;
• an individual buyer is not important for a business - only sales volume matters;
• mandatory use of mass communications;
• orientation of sellers towards template solutions.

Thus, we can draw conclusions about the key features of the B2C sphere. Despite the fact that the seller is not very interested in an individual consumer, he (the seller) provides the consumer with ample opportunities to satisfy his needs. The client can buy everything in one place. B2C profitability is ensured by mass sales in the absence of numerous intermediaries.

What is the marketB2 C? What distinctive features does it have?

Business modelB2 C (Business to Consumer) is a form of relationship between business and customers, in which the latter are the final consumers of goods and services. The B2C segment is significantly different from where trade is carried out between enterprises.

The term became very popular in the US during the dot-com boom of the late 90s and was used primarily to refer to online stores selling goods to end customers. The B2C idea was proposed and actively used by British entrepreneur Michael Aldrich.

The essence of the innovative approach was that previously manufacturing enterprises sold their products to retail stores, and they, in turn, sold them to end consumers. With the development of e-commerce and Internet technologies, factories and factories have the opportunity to sell their goods directly, bypassing retail chains - through websites.

Although numerous dot-com companies were victims of the dot-com bubble that burst and the flow of venture capital dried up, some B2C leaders survived those times and are now thriving (for example, Amazon).

In addition to e-commerce, the traditional B2C sector includes shopping centers, catering establishments, and the entertainment industry.

B2C marketing should focus on maintaining good relationships with customers to ensure they return and make repeat purchases. The emotional and psychological component of relationships with clients is important here. B2B marketing is more focused on demonstrating the value of a product.

The challenge for a B2C business is to maintain stable sales. During an economic downturn, it suffers to a greater extent than B2B, in which companies are still forced to order a minimum set of goods and services for themselves in order to stay afloat. In the B2C space, consumers are simply tightening their belts and showing less purchasing activity.

Therefore, B2C companies always strive to target a wide range of consumers, and firms with large budgets use national television to advertise their products and brands. In addition, B2C marketing is characterized by aggressiveness and intrusiveness - hence the attention to merchandising, sophisticated methods of price and non-price incentives, etc.

B2C sales have the following three characteristic features:

• Lower prices. Prices in the B2C segment are significantly lower than in the Business-to-Business segment, even if we take into account the market for such expensive consumer goods as cars. In commercial relations between enterprises, transaction amounts can reach six or more zeros on the check.
• Shorter sales cycles. Due to lower prices, the B2C market has shorter sales cycles, but not always.
• Fewer decision makers. The B2C system is very simple: the decision is made by the end consumer. Between enterprises, several persons are usually involved in the process of concluding a transaction, and this process is bureaucratic in nature.

Thus,B2 Csales have their own characteristics, which consist in establishing closer relationships with clients who make purchases based on psycho-emotional motives.

In this material you will find answers to the following questions:

• 1. B2B sales - what is it?
• 2. What is B2C sales?
• 3. What is the difference between B2B and B2C sales?

What is B2B sales?

B2B sales - business to business (business to business)- this means that a company or a division of a company sells its product/services to corporate clients, that is, other companies. As a result, something (products/services) is sold, with the help of which other companies do their business in the B2C market.

B2C sales - business to customer (business to consumer)- means the sale of goods/services by companies to individuals. Thus, B2C companies are at the forefront of communication with the end consumer, and the B2B segment is always in the middle of the food chain :). That is, in their work, B2B companies must focus on the needs of other businesses.

Can a company sell in the B2B and B2C segments simultaneously?
Of course it can. Let's take the same brick that is sold on the regular construction market. It can be purchased by a company for the construction of a turnkey cottage (B2B sphere), or by the owner of this cottage himself in order to independently build a booth for his St. Bernard (B2C sphere).

An even more striking example is the Sellers company, on whose website you are. You can be a representative of a company that is thinking about increasing sales or is looking for effective courses to increase sales, this will be B2B sales. Or perhaps you are less fortunate, and you are a sales manager who is not cared about by the company, and who is looking for ways to increase his efficiency and earnings, in this case this is B2C sales. It would seem that the same business can simultaneously be a product of both markets. But you need to sell it differently for a company and an individual.

Is it possible to draw a parallel between B2C and B2B sales clients?
For the most part, these concepts coincide, but there are also discrepancies. Let's take, for example, the construction market. Half of the goods are purchased from them by private traders or private traders who provide repair services to other people. That is, an individual buys a product, but in order to use this product in the process of creating another product.

Key differences between B2B and B2C sales

There is a common saying among ordinary people: “A good sales manager doesn’t care who he sells what to.” And, probably, the greatest disappointment is experienced by lovers of this saying, who came from one type of sales to another. In fact, the basic laws of sales are the same. But the nuances... make the work of sales managers completely different.
What is B2B selling? Below I will give a few examples that will help you understand the specifics of working in B2B sales.

There are five nuances that make buyers so different:

• 1) Purpose of purchase

What does a buyer do with a product in the B2C market? That's right - it consumes it. That is, the pleasure of consumption is a priority factor when choosing in the B2C market. The product is purchased for personal use and its consumer properties are the most important in the product. What's wrong with B2B sales?

In principle, this is true, only the consumer properties of this product are completely different. Almost all of them are related to how the company can increase profits with the help of the proposed product (increasing sales conversion).
Now answer the question of how such typical B2B products affect a company’s profit:

• IT systems
• Office
• Office equipment
• Accounting outsourcing
• Raw materials
• Machine tools

Were you able to explain how each of the listed services increases the company’s profit? Some directly, some through cost savings, some through streamlining work, but all of them influence profits in one way or another.
From this follows the most important difference between B2C and B2B sales:

When selling b2 c the client spends money to get pleasure.

When selling b2 b the client spends money to earn more.

Of course, there are nuances. We pay the dentist not for pleasure, but, ultimately, the absence of pain afterwards is pleasure. And yes, a printer cartridge does not bring money, but if it runs out at the wrong time, it can disrupt the conclusion of a contract.

• 2) “Buyer-consumer”

In B2C, the buyer and consumer are almost always the same person. Of course, there are exceptions in the form of gifts and shared consumption. But the interests of the buyer and the consumer almost always coincide. What happens to the B2B buyer? The company's money, and the decision to purchase is made by a person with his own personal interests. So it turns out that such a concept as “rollback” appears.

But not only and not always can kickbacks influence the decision; there is also personal comfort in working with this supplier, personal ambitions, friendly relations and 1001 other reasons that are in no way related to the properties of the product itself. Therefore, the effectiveness of sales often depends on these “minor factors,” while a private buyer much more often makes a decision to purchase a product not on the basis of the consumer properties of the product, but spontaneously, thanks to the emotions that advertising or the seller aroused in him. I describe how to evoke emotions that will help increase sales significantly in the article “Word of Mouth.”

• 3) Method of decision making

The higher the purchase price of a company, the more people are involved in the purchasing decision. The more people need to be satisfied with the same product. If most private clients make decisions based on emotions or beliefs in the brand, “quality” and other myths, then corporate clients most often make a decision based on our first point: “How the purchase will fit into the overall system of the company and help you earn more.”

Of course, cases are not excluded when an individual analyzes a purchase worse than the design department in a company, and the CEO makes a decision to supply because he liked this particular color, but most decisions in the B2C market are made on emotions, otherwise there would not be so much advertising on streets. And most companies are based on analysis, otherwise such companies would not be able to exist on the market for long. Accordingly, the method of influencing decision making is different.

• 4) Method of communication

There are orders of magnitude more individuals than legal entities. The transaction amounts are almost always an order of magnitude smaller. Therefore, the main method of communication in the B2C market is mass communication. Because it is expensive to contact each consumer individually. With B2B sales, it’s just the opposite: there are significantly fewer companies, and there may be only a few companies buying some products.

For example, equipment for cellular operators. And how effective is it to advertise on television: “The best equipment for cellular operators”? It will be much more effective to hire professional managers who will enter the company, make a personal presentation and make a sale. So it turns out that when a consumer comes to a store, he is influenced by advertising, PR, advice from friends (how to make your company recommended to others) and not so much depends on the seller.

Again, there are exceptions and competently trained sales managers can change the client’s opinion. When a B2B sales manager contacts a company, much more depends on his skill. And sales depend to a greater extent on this manager, and not on the company’s advertising or PR activities. Accordingly, a natural outflow of successful managers from B2C to B2B is formed, where the manager will not depend on store traffic, brand promotion and consumer activity.

• 5) Sales process

As a result of all of the above, a situation is created in which the global success of B2C depends on:

• Advertisements
• Consumer properties
• Ease of purchase
• The clarity of the service system

And in the B2B market sales from:

• Manager skills
• Opportunities to increase profits using a product

To summarize what has been written, we can say the following.
Working with corporate clients in the field of B2B sales is more complex, requires communication with many people in the company, and in most cases depends on the qualities of the sales manager.

And success in working with individuals (B2C sales) requires the creation of a well-functioning system where the manager’s sales skills are one of the elements of success. I hope that after reading the article you will not wonder what B2B sales are, but if you still have one, call us, we will definitely help you!