What is B2B, B2C, C2C? Interior Define makes available furniture under the order. To new meetings

What is B2B, B2C, C2C? Interior Define makes available furniture under the order. To new meetings
What is B2B, B2C, C2C? Interior Define makes available furniture under the order. To new meetings

All sorts of sales area is made to divide into two large segments. The first is B2C, the second - B2B. Quite often, having met these cuts, many wonder: B2C - what is it? Or so, let's figure it out.

Description of the B2B market

If literally translate the decryption, it will be "business for business", from English Business to Business. The term B2B denote any business focused on the sale of goods or services for other businesses. As an example, the wholesale bases that sell their goods are large parties, trade organizations representing large manufacturers and protruding only by sellers, etc. So, the B2C market - what is it, what is B2B and what are their differences?

Characteristics of the B2B market

For sales in this market segment, a number of features are characterized. Among them can be allocated:

B2C - what it is

With a business-oriented market, it was more less figured out, we turn to the consumer-oriented segment. So, B2C - what is it? In English - Business to Customer, and translated to our native - "Business for the Buyer". If you compare it with a business-oriented business segment for sellers, you can see that these concepts differ dramatically.

Basic business features for customers

  • Range. Typically, retailers working in retail, try to cover as much part of the market. This is done due to the maximum expansion of the range of goods sold and the services provided. Perhaps the most vivid example of B2C is supermarkets. In such stores, the consumer can acquire almost everything he needs. Plus, get additional services, such as delivery, setting up and installing household appliances.
  • Customer value. In retail trade, the value of one client is not very large, since the main money supply is made at the expense of sales for different consumers. Therefore, the B2C segment is focused on the needs of the market as a whole, and in rare cases takes into account the needs of a separate person. As a visual example, you can take any product of widespread consumption, for example, bread. This product has all the characteristics that can attract the maximum number of buyers. And if one person wants to buy bread with a taste of mint, it is unlikely that it will work out. And no factory will not make one loaf only in order to satisfy the need for one client instead of thousands. Almost: let's say, the owner of the supermarket for some reason decided that the bread with the taste of mint will disperse with a bang. He agrees with suppliers - and they make it a trial batch of such bread. Naturally, for such experiments the volume should be large. The situation, of course, is rather unnatural, but, nevertheless, it can be understood how different methods with orientation on business and the consumer are.

B2C: Courier delivery

Like the market of goods, the service market for B2C differs from B2B. This applies to any business areas. For example, B2C - courier delivery. Consumer orienteensions oblige a carrier company to have a very wide warehouse network, as well as transport. This is necessary because companies need to reach the maximum audience and create the best conditions for customers.

Combining markets

If you carefully look at many businesses, especially large, it can be understood that a clear line is erased between two types of products promotion. The natural desire of the owner of any enterprise is to receive greater profits, and if it is possible to get an additional portion of customers, no one will refuse. Good illustrations will be all kinds of building materials. Or dealer firms that distribute products on sales points.

Example of a company operating with different markets

Consider an example: there is a small organization engaged in the production of metal products. In its work, this enterprise uses paint products. The owner acquires it in construction stores either at the construction bases, since it is small volumes of small volumes directly from the manufacturer's factory. Alternatively, this owner can find an organization that has a dealer agreement with factories and which distributes their products to those building stores. Considering that such companies have a so-called minimum order, for example, $ 100, ordinary consumables are automatically sifted. But for the owner of a small business, this amount is quite acceptable, given that in the manufacturing process he uses these goods. Working with a dealer company, he receives substantial savings, because in this case the price he pays for the goods is almost equal to the purchase price of any store.

In this case, the owner of a small business acts as a small consumer, since the volume of its purchases is significantly less than that of stores, and, nevertheless, it is able to take advantage of the best conditions than other consumers.

The difference in approaches

What is the difference between B2B from B2C? There are quite significant differences between these two markets, at least at first glance they are very similar. These differences are enclosed both in marketing approaches and for the purposes of finite consumers.

The main differences in the market for consumers from the market for sellers:

  • Weightedness and rationality of making money decisions. B2C is characterized by emotion, the need to meet desires.
  • Volumes. If the usual consumer makes purchases to satisfy your needs, then the businessman buys to ensure his business. Therefore, the volume of purchases can be huge.
  • The price of the product. For an ordinary consumer, the cost of the goods plays a big role, but very often not decisive. But in the case of the B2B market, the difference in 1 dollar per unit can pour out in tens of thousands throughout the party, so the cost of goods is paid to great attention.
  • If a large attention is paid to the B2C for sale, then in sales in the B2B market, personal contacts with buyers and work with databases are published.

Thus, it can be concluded that corporate sales differ significantly from sales in the B2C market, which is such a separation that requires absolutely different approaches and methods.

B2C is the term meaning sales to individuals, B2C can be translated as Business-to-Consumer, that is, business for the consumer. In this case, the consumer needs to be considered an individual, business this legal entity sells sales.
B2C perhaps the most mass market segment in which is busy, a significant part of the population of developed countries. With all the apparent insignificance of small sales, for the global economy, consumer activity has a huge role. The demand for consumer goods FMCG depends on consumer welfare, in turn companies producing these goods provide most jobs in the world. B2C segment is very diverse in the methods of implementing goods and services. The most common ways to retail sales can be attributed:

  • Stationary shops. They differ in the area and the magnitude of the commodity matrix. From the smallest tobacco shops, to hypermarkets of several thousand meters.
  • Internet Trade. Annually the volume of Internet sales increases. Now via the Internet you can buy almost anything.
  • Tele sales, they are also called.
  • and. Exercised using self-search clients.
  • Markets and nonpatient sales points. It is worth noting that in the markets can trade as individuals, such sales are called C2C.
  • Passive advertising.

In general, B2C sales are characterized by active advertising support, for the promotion of goods is thought out. The main purpose of these actions to raise consumer activity. It is worth noting that it is consumer activity that is the main stimulant of the economy and gives an impetus for development.

Features B2C sales.

In the world of sales there is an opinion that if a person knows how to sell, he can do it in any situation. In fact, this is not quite so, between sales sectors there are quite large differences. The main differences between B2C from B2B sales are that the goals and risks from the transaction are not comparable. Business can not as a consumer to buy not necessary products, to meet their desires, business is not characterized by emotional purchases, in B2B sales is much longer himself.

Perhaps the main feature of B2C sales is high, and sometimes decisive, emotional component in making a decision on purchase. Making a purchase, for the most part, the client does not satisfy its basic needs, but simply buys the thing you like. Responsibility for the perfect purchase, we carry only before yourself, whereas in business, a decision about the deal often takes not one person, but a group of people and responsibility is much higher. If you deepen in the sales stages, it becomes clear that the needs of the client of an individual and legal are different. Therefore, the stages and presentations of the goods will be very different from each other.

It is also worth mentioning that sales to individuals as a rule have a short cycle, that is, the transaction itself takes a lot of time. While in the corporate and especially state segments of the market, the transaction can last for months, and sometimes years. Although there are exceptions, such as real estate and car sales, more about short and long sales you can read in the article.

Effect of Marketing on B2C

Over the past century, B2C sales have advanced far forward in public opinion management. Global corporations through the application of marketing strategies began to form consumer demand. In recent decades, the growing consumer demand developed countries has actively stimulated the development of the global economy.

Companies that successfully keep up for progress.

Methods that people make purchases change daily. Thanks to the distribution of smartphones and innovations in data processing technologies and delivery of goods, the ratio of retailers varies with unheard of speed.

We have chosen 25 companies that bring revolutionary changes to this area. From the recognized giant e-commerce, which begins to use drones, before the inventive network of pizzerias - all these companies are directly changing the B2C market ("Business for the consumer").

1. Zulily applies model TJ MAXX to e-commerce

Darrel Cavence. Seo Zulily.

Head office: Seattle

Year of foundation: 2010

What is this: Like the TJ Maxx retail discounter (NYSE: TJX Companies), Zulily (NASDQ: ZU) is arranged every day for mothers who make online shopping, a real treasure hunt. While TJ Maxx specializes in the model Sales, Zulily website offers large discounts on clothing items, home products, toys and much more.

Unique, constantly changing proposals force buyers to come again and again, and now the e-commerce site, which in 2013 held public placement of shares, has almost 4 million users.

2. KROGER Specifies the tone for grocery stores

Head office: Cincinnati

Year of foundation: 1883

What is this: KROGER (NYSE: KROGER COMPANY) 45 quarters in a row reports a continuous sales growth and is expected to have the Whole Foods Market (NASDAQ: Whole Foods Market) for two years on the leader's position in the field of selling organic and natural food. The network is famous for its excellent customer service level and a wide choice.

Retailer is stronger than other companies based on the supply of goods under its own brand, which helps Keep Prices are low and well known for its KROOGER Plus Card loyalty program, which provides customers with discounts and savings when buying fuel.

3. Brandy Melville builds a business-oriented business in Instagram

Head office: Santa Monica, California

Year of foundation: 1994

What is this: Brandy Melville retail chain of fashion store was founded in Italy more than 20 years ago. Thanks to a brilliant Instagram account, which is a mixture of photographs of professional models and real customers, a retailer does not come out of the top 10 brands of teenage clothes and makes great progress in e-commerce.

The brand is also known for its concept "one size fits all".

Head office: Austin, Texas

Year of foundation: 2009

What is this: BigCommerce helps retail to adapt your business under an online format. BigCommerce users enthusiastically respond about the company's peculiarities, including more advanced search engine optimization compared to other platforms.

The company maintains more than 70 thousand retailers in 150 different countries and has already conducted transactions for more than $ 5 billion. Among the clients of BigCommerce - Cetaphil, Gibson and Ubisof guitars.

5. Starbucks makes a revolution in the field of mobile payments and delivery

Head office: Seattle

Year of foundation: 1971

What is this: Starbucks (NASDAQ: Starbucks Corporation) in response for the widespread distribution of the coffee house format. Now the company with her 21 thousand institutions was in the forefront of mobile payments technology.

Starbucks mobile application allowed consumers to pay for drinks using a smartphone before Apple Pay. By this point, with the help of smartphones in Starbucks, impressive 16% of transactions are held. The company also tests the delivery program in Seattle and New York.

6. Poshmark creates a reliable market for secret hand

Head office: Menlo Park, California

Year of foundation: 2011

What is this: Poshmark uses a platform like Instagram to help customers sell used clothing. For an additional fee, users can easily upload photos of their own things. Unlike eBay, which stuns a wide range of products, Poshmark is focused on clothing and accessories.

Users can search by brand or watch that they offer their friends, and this gives the application a social aspect.

7. Under Armour challenges recognized sports brands

8. Pirch creates a new kind of home shopping

Head office: San Diego, California

Year of foundation: 2010

What is this: Pirch - high-end home store. The creators of the company are striving to make the shopping process "inspired and joyful." Retailer builds stunning spacious exhibition halls. Customers welcome Barista, offering latte for their taste.

Buyers can try all products, including shower with aromatherapy or heated toilet seat. While more shopping is performed online, Pirch is the leader in attracting customers into its non-virtual stores.

9. Kohl "S re-opens the concept of the department store and challenges all - from Macy" S to Wal-Mart

Bella Thorn is purchased by the goods of the Candie brand in Kohl "S in Los Angeles

Head office: Menomoni Falls, Wisconsin

Year of foundation: 1962

What is this: According to a recent study, Kohl Department Stores "S (NYSE: Kohl" s Corporation) - Favorite place of American women to buy clothes. A small network offers impressive discounts on domestic brands like Nike, Vera Wang or Izod. Analysts say that the excitement of the search for successful transactions makes the hunters for discounts come again and again. The well-thought-out connection of brands and pricing policies in Kohl "s is much hurting on competitors like Wal-Mart (Xetra: Wal-Mart Stores), which offer low prices every day.

10. Editd shows retailers for buying their customers in real time

Head office: London

Year of foundation: 2009

What is this: Editd is a technological company that helps retailers such as Target, GAP or ASOS, offer "right products in the right place and at the right time." The company tracks that people buy in real time. It helps retailers to make more informed decisions on merchandising and faster reserves.

11. Trader Joe "s recesses product brands from the pedestal

Head office: Monrovia, California

Year of foundation: 1958

What is this: Sales of Trader Joe per square meter is twice as high as the Whole Foods, but rest on a very small number of brands. Consumers consider TRADER JOE products with high-quality and inexpensive (the price of many basic products is twice as low as other sellers). An important is also called the originality of goods for home use.

The list of the most popular products includes chicken cutlets with chili and lime, "liver oil" (peanut pasta with cookies taste) and salsa with corn and chili.

12. Lululemon headed the movement to the style "Athleisure" - the largest revolution in the world of fashion over the past decades

Head office: Vancouver, British Columbia

Year of foundation: 1998

What is this: Lululemon (Nasdaq: Lululemon Athletica) was perhaps the first company, who offered women's clothing for training, which they would like to wear all the time. Now, according to analysts, this style, called "Athleisure", can be an integral part of the range of many brands.

Now among the company's imitators - Nike and Under Armour. Lululemon continues to introduce innovations - her "pants that do not hise in groin" have become very popular among men. The company also expands IVIVVA, line for young girls.

13. Pet Food Express leads the market to "conscious capitalism" in food production for pets

Founders Pet Food Express with their pets

Head office: Auckland, California

Year of foundation: 1986

What is this: It is easy to understand why Pet Food Express, which in California more than 50 stores is so popular. The company holds prices by 10% lower than that of competitors, and allows you to enter pets with pets.

She also sacrifice funds to help animals, only in 2013 allocated $ 1.7 million for this. Pet Food Express is known for the fact that it offers employees worthy of labor and benefits, and is considered one of the best companies for work.

14. Swipely offers small business "all-in-one" platform for marketing and payments

Head office: Providence, Rhode Island

Year of foundation: 2009

What is this: Swipely is a platform that helps thousands of small retailers and restaurants to attract and hold customers.

The company tracks cash desk data, sales and customer information, so that the seller can track exactly which sales technology are successful - a service that used to be only available to large companies. Companies using Swipely are reported to the total of annual sales in the amount of 4 billion dollars.

15. Brilliant Gamestop strategy helps her avoid the BlockBuster fate

Head office: Grapewin, Texas

Year of foundation: 1984

What is this: In the e-commerce era, many assumed that Gamestop (NYSE: Gamestop Corporation), a network trading in video games will go along the tracks offering books, music and video.

But Gamestop managed to force customers to come for digital content in real shops. It positions its retail stores as a place where young people can talk, and this means that online competitors will not undermine her business. The company also offers the redemption of old games and loyalty programs that have no analogues from competitors.

16. Stitch Fix Changes Women's Shopping

Head office: San Francisco

Year of foundation: 2011

What is this: Stitch Fix eliminates the most difficult part of the shopping: choice. With its help, women no longer need to come to the store or view sites to find the clothes that they like.

The company's stylists pick up goods for customers based on an extensive profile of their style preferences, sizes and types of physique, and each month is sent a box with selected wardrobe objects. Customers can try on clothes at home and send back what they did not like.

Over time, the service becomes more accurate in predicting preferences of specific customers due to the algorithm that takes into account feedback.

17. Aldi invented how to be cheaper than Wal-Mart, and sales grow

Head office: Essen, Germany

Year of foundation: 1913

What is this: Aldi, which is called the best food store in the US, keeps lower prices than Wal-Mart, offering a small selection of goods mainly under its own brand. Aldi also saves money, demanding from customers to come with your bags and packaging products themselves.

In the US, the network has almost 1.3 thousand shops, mainly in the Midwest and East, and over the next five years it plans to open another 650 points.

18. Abine protects consumers from hackers with the help of "fake" credit cards

19. Interior Define makes available furniture under the order

Head office: Chicago

Year of foundation: 2014

What is this: Interior Define Designs every piece of furniture to order and allows customers to determine all the characteristics, including size, shape, color, fabric, filler and frame.

For average price About 1.7 thousand dollars for the product Interior Define is focused on customers who have grown from IKEA, but until they can afford design brands.

20. Amazon makes a revolution in the "Economics on request"

Rhode Island

Year of foundation: 1963

What is this: Pharmacy CVS network shocked the world's retail world last year, when she decided to stop selling cigarettes and other tobacco products in their stores, stating that tobacco "is not a place where it is about health care."

It was expected that the decision would cost CVS (NYSE: CVS Health Corporation) about $ 2 billion, but the pharmacy chain fill out a part of the missed benefit using a new premium program for CAREMARK clients who buy prescription drugs in pharmacies selling tobacco products. Change gives Caremark customers incentive to go to CVS.

22. Restoration Hardware opens the huge "design galleries", sales on the rise

Head office: Cort Madera, California

Year of foundation: 1980

What is this: At a time, when many retailers close stores or reduce their filling, restoration hardware (NYSE: RH) opens even larger stores - and sales only grow.

The company opens the huge "design galleries", which are more than ordinary stores, and offer a much wider choice of products. Restoration Hardware sales in existing stores in 2014 flew by 20%.

23. TJ MAXX reserves the idea of \u200b\u200bdiscount

Head office: Framingham and Malboro, Massachusetts

Year of foundation: 1976

What is this: TJ MAXX (expenses

Head office: New York

Year of foundation: 2011

What is this: ADORE ME applied a "fast fashion" retailer strategy, such as Zara and Forever 21, to the business for the sale of underwear.

The set of linen from Adore Me costs about $ 39, while one bra from Victoria "S SECRET costs $ 50-60. The first brand offers large sizes, while the second is criticized for a limited choice.

The most common type of business in Russia is the B2C scheme, which translated from English denotes business-to-Consumer, that is, business for the consumer. We will analyze what applies tob2C segment, what other work schemes are available and what is the feature of this business.

Introduction

B2C is a classic business that sells its goods to the final consumer, and not to other enterprises. It is this scheme of work that is considered the most mass all over the world. The opposite of B2C is the B2B version, that is, business for business. According to this scheme, the business sells goods to business, and the main purpose of buying is not consumption, but an increase in profits. For example, the plant purchases from the manufacturer of 20 machines in order to open a new workshop and master the production of new products. B2C is a classic store, in it people buy products to consume them on their own.

B2C is sales to the final consumer

A key position on sale for consumers is an assortment. What it is wider, the more efficient sales (as an example is a hypermarket, in which the visitor can buy everything you need for life). At the same time, the rate is done on the mass of sales, that is, a large number of transactions concluded. Thousands and tens of thousands of sales are held in the supermarket a day. In this case, the client actually does not have value in the B2C system, because they are a big stream and spend time to clarify its preferences and needs. B2C works on a stream, focusing on the needs of the market, so some unique and expensive goods are sold rarely (but there are exceptions everywhere). For example, the company manufactures the yacht under the order and sells them to private traders. One yacht can be manufactured for a whole year, that is, the transaction is one, but nevertheless it is the principle of the business consumer.

How to sell to the consumer

Classic B2C Sales Technology it is very different from B2B, so to take a manager who worked according to the B2B scheme in the B2C company is not entirely appropriate. Consider what is being focused in sales to the consumer:

  1. Emotions. Buyers often acquire unnecessary things to them, yielding to emotions. Red price tags in supermarkets are also emotions, the buyer understands that some product is cheaper and takes it "for the future", although just a few seconds ago did not plan to buy. Also, emotions are popular brands, impact of managers, etc.
  2. Marketing, analysis of the target audience, outdoor advertising. Here everything is simple: the marketer draws a portrait of a middle buyer and based on the data obtained creates a promotion strategy.
  3. Creation of the necessary atmosphere. The supermarket does not just lay out the goods on the shelves, it creates a special atmosphere that has intensive purchases. The same thing is done in cafes, restaurants, hotels, and even on sites.
  4. Seller. The more experienced, friendly, competently seller, the more sales. But this is also an optional requirement, in many businesses the seller is only an application to the cash register. But nevertheless the seller is still a kind of store.
  5. On a product that is sold (or service). Buyers need to be interested, they need to offer the best version of the goods. That is why there are not only its characteristics, but also the packaging, feed, its fame, and so on. What do you choose on the supermarket shelf? In most cases, a familiar brand or product with interesting packaging.
  6. After sales period. No need to assume that the deal is completed after the client handed you the money. Many companiesb2C marketthey sin with this, as a result of which clients leave negative reviews about them and cease to use the services. Remember that you have commitments: warranty, service, delivery, etc.
  7. The competent collection of statistics with the definition of key parameters: the number of visitors, the number of buyers, the average check, the effectiveness of shares, conversion, etc.

Sale of users is different from the sale of business

Difference B2C from B2B

Consider what is the main difference between the tool and toconsumer:

  1. Purpose of acquisition. The client acquires a thing either for his satisfaction, or yielding to emotions, whereas in business it is simply inappropriate - everything is aimed at extracting maximum profits.
  2. In most cases, the buyer and the consumer is the same person. Of course, the purchase can be made for another person, but in general the interests of the consumer and the buyer coincide. In to business, everything is somewhat different, the company spends money, and the purchase of goods is made by a person who has its own interests, that is, the situation may arise with kickbacks, and with the purchase of equipment from "their" companies or people.
  3. Solution option. The usual buyer makes a decision based on the fame and cost of goods. Business makes a decision based on the feasibility of purchase, on the basis of how the purchase fit into the budget, how it will increase the company's profit, etc.
  4. Communication option. Insofar asb2C business model is mass sales, then communications with customers here are often minimal. The seller may simply explain to the buyer the product characteristics and help find the desired option. Many sales are generally conducted without communication, for example, in a supermarket. In business, everything is different: there is a bet on building a reliable communication channel - managers can be recorded on the reception, directly communicate with the management of the company or the persons responsible for the purchase, hold presentations, etc.
  5. Sale of goods or services. In order to sell, you need to choose a suitable product, carry out competent marketing and create a valid, convenient customer service system. In business, the emphasis is on the skills of managers and the characteristics of the goods, that is, the work is carried out more addressable and jewelry.

Attention:the same company can work simultaneously in two systems. For example, the restaurant can serve customers in the hall and sell lunches to companies with delivery to the office.

Methods for increasing sales

B2C is usually focused on the mass of sales, and not on a high markup, since competitors do not dreamed and always seek to offer the best conditions. How can I increase sales of goods, if it would seem, the situation went into a dead end and sales do not grow? It all depends on what exactly you trade, but the main task is to offer something interesting to the client, which will solve his problems.

B2C sales are focused on emotions and satisfaction

Consider an example. Not so long ago, antiviruses for mobile devices appeared on the market. The cost of antivirus for mobile was higher than that of a classic computer, besides, on mobile phones, significantly less viruses than on a computer. The developed application was very poorly sold: for the year over the Internet and communication salons managed to sell only about 3 thousand copies at an average cost of 750 rubles for the whole of Russia. Then marketers changed the approach, they offered customers a lifetime license for this amount, while computer antiviruses needed to buy a license once a year, spending 300-500 rubles for it. That is, in fact, an additional value for the buyer was created, he bought the application for a lifetime, it could be transferred to new devices, it was not necessary to constantly extend the license and spend money. Marketing strategy was built on it. And she completely justified himself: for the year the number of sales increased almost 10 times.

After that, another action was made. The store received a memory card for the phone to which the anti-virus distribution was recorded with a license file. That is, in fact, the buyer made one purchase, acquiring two necessary things. As a result, the number of sales increased by another 3 times from the initial one.

There are similar examples in almost any industry. One entrepreneur tells that he leased the area in the shopping center, which was in a difficult place - already five entrepreneurs working on these squares were raised. He organized the sale of elite alcohol, but trade was extremely bad. Then he created a beautiful showcase and put inside the music apparatus on which the pleasant music was playing. People heard music and came to him, or simply noticed beautifully highlighted bottles on the shop window and made purchases. Such a simple way he raised sales by almost 20 times compared with the first two months of work.

So, you already know everything you need aboutb2C sales - what it is, how they work and what happens. Now consider several classic ways to increase sales:

  1. Bonus system for sellers. If he manage to sell more, he must receive a premium, and not just work at the rate.
  2. Learn to work with customers and make them loyal. According to statistics, most people return to the store, if the sale has passed successfully and comfortably, and post-sales service was done qualitatively.
  3. Try to use merchandising strategies, experiment with looting goods. Usually, products with affordable cost are put on the fore, and expensive install a little away.
  4. Use the discount and system of discounts to attract buyers and tie them to the store.
  5. Sell \u200b\u200badditional services to raise the check size. For example, selling suits, offer customers ties or shirts. Selling sneakers, offer socks, insoles, shoelaces, and so on.
  6. Use promotions and acquaint customers with your goods. The perfect option is if a person can test or taste the goods in place. In this case, he will remain satisfied and guaranteed to make a purchase, even if it was not going to buy anything.

So, let's summarize everything that has been said above.B2C is this simple words? It is a sale of the goods to the end user, that is, not a company, but a person. Most of these sales are made on emotions and to meet the buyer, because of which the marketing strategy should be built accordingly. There are always options, how to increase sales, the main thing is to correctly analyze the situation and think that you can change for the better.

In contact with

B2B or B2C. We will deal with terms.

Terms B2B and B2C seem to be clear. One of them (B2B) indicates sales for business, the second (B2C) sales for personal use. However, in some cases it is not clear to what to take the sale, for example, one air conditioner of the company, or fax lawyer who uses it for its activities. It turns out ambiguity, at first glance, the practice is contrary to theory - let's try to figure it out.

According to the formal definition of B2B (eng. Business to Business, literally business for business) - term defining the interaction of legal entities. In other words, if one company sells something else to another company, this action by definition enters the sphere of B2B activities. Similarly, the term B2C (eng. Business-to-Consumer, Rus. Business for the consumer) is a term denoting commercial relationship between the organization (Business) and a private, so-called "final" consumer (Consumer).
However, in Russian, there are concepts like the corresponding B2B and B2C definitions - wholesale and retail trade. But whether everything is so unambiguously with definitions. Let's figure it out.
First on definitions.
"Retail trade is to trade in goods and provision of services to customers for personal, family, home use that is not related to business activities."
"Retail trade enterprise is a trade enterprise that sells goods, performing work and the provision of services of trade in customers for their personal, family, home use. (GOST R 51773-2009)
"Wholesale trade is an integral part of the internal trading; The initial stage of circulation of goods, their movement from manufacturers to retailers or, in terms of production facilities, enterprises. " - (BSE)
"Wholesale trade - trade in large batches of goods, sale of wholesale buyers consuming goods in a significant amount or selling them then retail." - Glossary.ru.
"Wholesale trade is to trade in goods with subsequent resale or professional use." - (GOST R 51303-99)
"Wholesale to trade enterprise, selling goods, work and provision of services to buyers for subsequent resale of goods or commercials. (GOST R 51773-2009)
Note - Wholesale to enterprises include wholesale-distributive logistics centers, commodity warehouses, warehouses, wholesale food markets, wholesale and small-pool trade centers, etc.

Any definition of wholesale trade, or wholesale (even the last) implies trade in batches of goods, which implies special characteristics of the product (packing of a batch of goods, storage service, loading, delivery, etc.). Just in the last definition, it will be an industrial purchase, implying a product that includes characteristics other than a single product.
Therefore, I do not agree that any sales from the enterprise is an opt. Based on the essence of the definitions, the wholesale is the sale of a batch of goods (no less packaging *) for subsequent resale or use in the enterprise. And in Guest there are contradictions. Therefore, it is easier to use the term B2B sales, to exclude confusion.
* Melkoo-alloy trade: a type of wholesale trade related to the sale of goods, the minimum batch of which cannot be less than the number of units in one manufacturer's packaging for retail. - GOST R 51773-2009

Let's start on the concepts presented above, we will give strict definition of terms B2B and B2C
B2B The market is a set of consumers who carry out purchases for professional use, as well as buyers (wholesale trade enterprises) carrying out purchases for subsequent resale of goods.
Sales on the B2R in the market are carried out either through the sales department of the manufacturing enterprise, or through wholesale enterprise.

B2C market is a set of buyers who are purchased for personal, family, home use.
Sales on the B2C market are carried out through retail enterprises.

Pay attention to the first definition in each pair implies the definition of the buyer, t. e. Definition of the macrogerage, and the second, the process of interaction between the seller and the buyer. From here, confusion may occur, depending on what to understand the market: "Consumer totality" or "seller's meeting place". In the first case, we will talk about the macroegment, in the second - about the industry (trade enterprises). In our discussion speaking about the market, we are talking about the totality of consumers, adding wholesale buyers to them - intermediaries.
If you depict the system in the diagram - we get the following.

B2B and B2C markets - sales channels and end consumers. © Andrey Minin

Thus, depending on which category of trade enterprises (wholesale or retail) includes an enterprise, it is focused on the B2B or B2C market.
In some cases, it can be focused on working immediately in two markets. For example, construction bases that are happy to work with both private and business buyer. In this case, it is also called the wholesale and retail enterprise. Approximately the same situation with the sales via the Internet, the site can be viewed as a showcase, but sales are actually carried out from the warehouse. That is, this is a wholesale and retail store. Formally, we can divide B2B or B2C sale either for an enterprise operating on a particular market (selling one segment), or (for mixed trading type) by the purchase of a purchase.

Now let's go back to our examples. In my opinion, the next logic (based on definitions) is applicable for all cases. If you buy through a retail store - B2B, in another case, B2B. According to the formal sign, if the transaction is carried out as a sale between legal entities - this is B2B for sale. Accordingly, if the sale was in the retail store for cash is B2C.
But, in fact, the introduction of these terms was intended to carry out macroscreaming, since the methods of working with private buyers and organizations are distinguished in almost all elements of the marketing complex, starting with the product and ending with marketing communications.
Accordingly, the company selling air conditioners on the B2C market will form a product that differs from the proposed retailers, at a minimum, it will be focused on a turnkey complex for the object, whose owner is another company. Therefore, the purchase of an air conditioner in the retail store (or from the supplier's company's warehouse), and further independent installation of its own installers in the office of the Director or Negotiate does not make this transaction related to the B2B market. After all, the company has been initially focused on other methods of work and other customer needs, as well as models of their behavior.
In the event of a fax if the company seller is focused on working with companies to which the lawyer's office attributes and organizes work in such a way as to attract them to their office (store), where sales exercise competent consultants, then this can be viewed as work on the B2B market. Regardless of who is formally a buyer.
In some cases, the company can simultaneously work in two markets. For example, small companies are computers sellers that can focus on consumers of two markets immediately. At the same time, they will differ mainly, marketing communications aimed at two different markets.

Thus, the company can be focused in its work on the B2B or B2C market, and at the same time use the appropriate marketing tools. If, at the same time, individual sales are carried out by buyers from another segment, it does not mean that the company operates on another market, just a buyer made a buyer from a misuse segment. In this case, everything becomes in its place. There are no contradictions in theory.

© Andrey Minin 2012