...Business-to-business B2C & B2B A B2C site is defined as a consumer shopping on the Web, often called business-to-consumer (or B2C). B2C ordinarily refer to on-line trading and auctions, for example, on-line stock trading markets, on-line auction for computers and other goods. B2C e-commerce refers to the emerging commerce model where businesses /companies and consumers interact electronically or digitally in some way. One of the best examples of B2C e-commerce is Amazon.com, an online bookstore that launched its site in 1995. In a B2C e-commerce the focus is more about enticing prospects and converting them into customers, retaining them and share value created during the process. The ultimate goal is the conversion of shoppers into buyers as aggressively and consistently as possible. In a typical B2C flow of information between business and consumer typically is through the medium of Internet. This flow includes product orders/service requests from customers, product information, specifications, providing of services by Business etc. In addition, it may also include, flow of tangibles (e.g. goods ordered from customer, documents transfers between business and customer etc.) Giving credit to the author retrieved from http://projects.bus.lsu.edu/independent_study/vdhing1/b2c/ A B2B site is defined as transactions conducted between businesses on the web. In simple words B2B commerce can be defined as "doing business electronically" or business that is conducted...
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...B2B vs. B2C For more than a decade usage of the Internet has increased exponentially changing the way companies interact with their customers. According to Ralph Oliva (2007, p.1), “Forecasters expect domestic B2B purchases will continue to total trillions of dollars annually.” He goes on to say that in 2004, “domestic B2B online sales totaled $2.7 trillion” while online retail sales in 2004 reached $184 billion. This increase has opened up new opportunities and challenges for marketing to these customers electronically. Because business customers and individual customers react differently to marketing, strategies and tactics used to reach one segment may differ from those used to reach the other. This paper will first look at how the business customer and retail customer are different, then delve into the differences between B2B and B2C marketing. Relationship Differences One important aspect of marketing is to build good relationships with customers. “In B2B or business to business this requires a commitment of time and good customer service prior to ever making that first sale.” (Warholic, 2007, p.1). One of the differentiating factors between B2B and B2C sales is the B2B sales process takes longer because business customers require more communication and product details. Business customers are not apt to purchase during the first contact with a vendor. Usually the sale, especially the first one, takes multiple contacts creating a bonding relationship. Business...
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...Creola Williams 11/11/2013 E-Business Professor Nick Lo Preiato Key Elements of B2B and B2C Types of business models: * E-distributor, supplies products directly to individual businesses. * E-procurement-single firms create digital markets for thousands of sellers and buyers. * Exchange-independently owed digital marketplace for a vertical industry group. * Industry consortium- industry-owned vertical digital market. * Private industrial network-industry owed private industrial network that coordinates supply chains with a limited set of partners. Companies will buy from other companies directly when products are available at cost and they have what their looking for and can deliver on time, companies earn money by eliminating the third party and selling products for more than the cost to make them. These companies also have to analyze their competitors and how well they are doing in the same environment. To be able to bring a competitive advantage to this environment the company has to have something special that other companies do not have. Companies must have a strong market strategy, they have to know how to market their products in the market space to attract the audience they need for purchasing their products. For organizational development companies must divide work into compartmental sections and form a plan as how best to carry it out, with hiring and organizing departments within the company. All companies need a good management...
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...Business-to-business (B2B) markets products or services to commercial businesses, government bodies and institutions for various purposes including for resale, commercial use or for incorporation in their products or services (Hutt & Speh, 2010). Business-to-consumer (B2C) markets products or services to individual buyers for their own personal consumption (Hutt & Speh, 2010). Although both are selling products and services, there are differences that distinguishes these two types of market from each other, especially when it comes to formulating strategies and marketing activities. Therefore, I agree with the statement. In general B2B is relationship-driven whereas B2C is product-driven. B2B focuses on relationship marketing efforts by retaining loyalty and meeting the needs of buyers while B2C focuses on developing products that fit into specific target markets rather than based on buyer needs. One of the difference is the market structure of both markets. B2B market is niche size. There are relatively few buyers however those buyers are large buyers. B2C market is large in size but consists of small buyers. Also, B2C market is pure competition whereby there are many sellers and buyers in the market. Due to the target market being a mass market, a single buyer or seller does not have much effect on the market. However, the niche size B2B market is oligopolistic competition with very few sellers, hence they are sensitive to each other’s pricing and marketing strategies...
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...B2B Marketing Verses B2C Marketing Opportunities Business-to-business (B2B) and business-to-consumer (B2C) marketing is different. Some people think marketing is marketing and whether it is marketing to consumers or marketing to businesses, it is still just marketing to people. E-commerce is rapidly becoming the new frontier of the 21st century. As a business strategy with tremendous potential, is worth taking a close look at what works and why and why it can work. In the today business environment, there is a clear advantage to being on the Web ahead of the competitors and in presenting a high quality image and positive, productive communications through Internet contacts. Advertising by promotional pages is an extremely effective way to highlight a single product and is rapidly becoming the product presentation form preferred. Especially when combined with e-mail or newsletter programs, it offers terrific versatility in adapting your advertising to specific interest groups and retail customers. Promotional pages have been regularly used in print media to introduce a product, but the electronic version can be used and reused for as long as needed without additional printing expense. It is clean, focused, concise, and detailed, is the next best thing to putting a product sample in the consumers hands. Marketing by means of the Internet offers both opportunity and hazards for businesses that choose to operate online. On the opportunity side, the B2B electronic market is an remarkably...
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...Course Project Developing B2B and B2C types of e-commerce at Midea Corporation Abstract This project discusses that what e-commerce can do to help Midea gain more profit or reduce the spending. In China, most of the IT technologies that customers use are at the initial stage. The development of the Internet is just at the beginning. Therefore, customers can’t make an order for what they want only by viewing the company’s homepage. As the leader in the area of Chinese household appliances, Midea should play a leading role to run the e-commerce which is good for running the business. This project says that how Midea finds out its problem and deal with it by e-commerce. Brief Company background Midea which produces the home appliance, mainly involved in the field of logistics and other large-scale comprehensive modernized enterprise was established in 1968. What is more, it has four industry groups, therefore it is China's largest home appliance production base and export bases. In 1980, Midea officially entered the home appliance industry. Currently, there are 130,000 employees are hired by Midea. Looking to the future, Midea will continue to adhere to the effective, harmonious, scientific policy of development, in order to form the industrial diversification, the development of large-scale, business specialization, regional operations and management of differentiated of industrial pattern. Moreover, it strives to establish a healthy financial structure and enterprise...
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...How The Supply Chain Differs On A B2C Site Compared To A B2B Site The coined term B2C or business to consumer describes a form of business where a company sells products to consumers. An example of a B2C in tangible terms would be walking into Wal-Mart and buying something. An example of a B2C eCommerce would be going to Wal-Mart’s website and making a purchase. B2C eCommerce can be any business selling a product, service or information to consumers online. B2C in eCommerce is basically electronic retailing or shopping electronically. B2C’s can be anything from vacations, cruises, airline tickets, games, books, clothes etc. The coined term B2B or business to business describes a form of business when one company buys from or sells to another. An example of a B2B in tangible terms would be a copy machine salesman going door to door to business’s trying to sell copy machines to offices. An example of a B2B eCommerce site would be a copy machine website serving the copy machine needs of offices all over the world. B2B eCommerce is more than just buying or selling however, many B2B sites now outsource their supply chain as well. B2B’s include processes that either enable or improve relationships between individual firms or multiple companies. B2B’s can include design, engineering, supply, delivery, accounts payable, accounts receivable, product search, electronic payments and managing logistics. There are many differences in B2B and B2C sites, in which I will try to outline...
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...The coined term B2C or business to consumer describes a form of business where a company sells products to consumers. An example of a B2C in tangible terms would be walking into Wal-Mart and buying something. An example of a B2C eCommerce would be going to Wal-Mart’s website and making a purchase. B2C eCommerce can be any business selling a product, service or information to consumers online. B2C in eCommerce is basically electronic retailing or shopping electronically. B2C’s can be anything from vacations, cruises, airline tickets, games, books, clothes etc. The coined term B2B or business to business describes a form of business when one company buys from or sells to another. An example of a B2B in tangible terms would be a copy machine salesman going door to door to business’s trying to sell copy machines to offices. An example of a B2B eCommerce site would be a copy machine website serving the copy machine needs of offices all over the world. B2B eCommerce is more than just buying or selling however, many B2B sites now outsource their supply chain as well. B2B’s include processes that either enable or improve relationships between individual firms or multiple companies. B2B’s can include design, engineering, supply, delivery, accounts payable, accounts receivable, product search, electronic payments and managing logistics. There are many differences in B2B and B2C sites, in which I will try to outline and define through the course of this paper...
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...Session 01 Introduction to Business Marketing Girish Ketkar B2B Marketing @ BIMM 2012-14 Semester 1 Session 01 Agenda B2B perspective Differences between consumer and business marketing Types of customers Girish Ketkar B2B Marketing @ BIMM 2012-14 Semester 1 Session 01 1 Reading Business Marketing Management: B2B (Hutt, Speh) – Chapter 1: A Business Marketing Perspective Industrial Marketing (Krishna K Havaldar) – Chapter 1: The Nature of Industrial Marketing – Chapter 2: Understanding Industrial Markets and Environment Girish Ketkar B2B Marketing @ BIMM 2012-14 Semester 1 Session 01 B2B Perspective Girish Ketkar B2B Marketing @ BIMM 2012-14 Semester 1 Session 01 2 B2B Marketing Industrial Marketing Business Marketing Organizational Marketing Girish Ketkar B2B Marketing @ BIMM 2012-14 Semester 1 Session 01 Business Markets Markets for products and services – Bought by • Businesses, Government Bodies and Institutions – For • Incorporation – Raw materials, ingredients, sub-assemblies… • Consumption – Stationery, housekeeping services, security services, fuel… • Use – Machinery, forklift trucks, computers, air-conditioners, furniture, cars… • Resale Girish Ketkar B2B Marketing @ BIMM 2012-14 Semester 1 Session 01 3 Business Marketing (B2B Marketing) Many definitions… – Marketing activities of an organization which has exchange relationships...
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... let me first define what Business to Business or B2B. Then I introduce what business to consumer or B2C in short form. Both B2B and B2C describe the nature and selling process of goods and services. While B2B products and services are sold from one business to another, B2C products and services are sold from a company to the final user. Any products or services exchanged in B2C mode can be considered a part of B2B. However, products which are transacted in the B2B market are never a part of B2C. An example will clear the difference between B2B and B2C. Personal Computer, for example, is a typical product of B2C. When a Cyber Café orders PC for a large quantity, the transaction is considered B2B transaction and as a result, the product is no longer B2C, but B2B. Building a brand in a business-to-business context is different from doing so in the consumer market because of the nature of buyers. In the B2B mode, buyers are normally another manufacturer, wholesaler or a retailer. While in the B2C market, transactions occur between a company and end users. By entering a new markets Cisco has gained new competitors such as IBM, Microsoft etc. In order to compete against these competitors Cisco uses the outstanding methods of both business to business and the consumer marketing. Initially, Cisco has been selling products to other businesses. B2B markets are generally small vertical markets, often niche in size. Branding in B2B is centered on the relationships of many different...
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...Companies in Transition Hans Kristian Tjemsland(a) , Ole Christian Wigestrand (b) A :Student , HH UIS, Anvendt Finans B: Student, HH UIS, Strategi & Ledelse Abstract: This article will highlight important differences between the traditional manufacturing business and the modern type of firm, come to known as business to business manufactures. The objective is to find differences using historical literature and data obtained from IMSS IV. In our search to find distinction between business to business (b2b) and business to consumer (b2c) we have use SPSS to statistical test the data we found. One of the main goals of this article is to give the reader some clear opinions about the development of a modern manufacture. Keywords: B2B, B2C, IMSS, Supply Chain and Customization. Background: Traditionally in Rogaland, the industry has manufactured products for end users. This implies that the manufacturers themselves have produced their entire product from scratch. High employee cost and government taxes have forced the companies to change. Today the manufacturers have changed to produce parts and components manly for the oil industry. This has led to longer supply chains and more use of outsourcing. In operations management there is many ways to control the manufacturing process. The change from producing products for end users to produces parts and components for other businesses have impacted the use of operations management. For instance, it has changed their strategy...
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...E-Commerce Business Models: B2B & B2C Name of the Student Name of the Institution Definition of B2B Model (Business to Business): The B2B business model is defined as a form of trading in which the buyer and different companies come together to make purchases and sales in an electronic environment (Yeoman, 2004). In this kind of trading on the electronic medium both the buyers and the sellers are business people or two organizations. The example of this trade can be when the wholesalers are selling their goods to the retailers through internet. Another example can be when the manufacturers advertise and sell their productions online to the wholesaler or to the retailer. In this kind of trade the end consumer of the product is not involved. Definition of B2C Model (Business to Consumer): Business to consumer model in electronic environment is very effective model in the study of commerce. This model has opened the ways to access to a wide market of customers. In this kind of trade there are more chances of involving the potential customers into sales. B2C model is defined as internet based trading that’s allows the different buyers (manufacturer, wholesaler or retailer) to communicate and sell its product to the end consumer. This model is also defined as all the e-commerce activities that take place to cater end consumer of the product (Coteanu, 2005). Unlikely B2B model the seller is the business person and the buyer is the individual consumer...
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...INTRODUCTION The idea or concept of Business to Business (B2B) marketing has existed for centuries but for a long time it had been ignored and remained in the shadows of the more traditional Business to Consumer (B2C) marketing (Pitt & Honeycutt, 2001). It is over the last two decades has more light been shone on this important phenomenon- where businesses trade with other businesses, governments and Institutions . It is essential to first and foremost understand that B2B marketing cannot exist in isolation, the existence of B2B and B2C markets are in many ways dependent on each other for its survival and growth, a single demand for a B2C product such as a car gives rise to millions of B2B market demands such as aluminum, leather, steering systems, engines, etc (derived demand). Furthermore a failure in one market will have significant detrimental impact on the other. This essay however aims to identify the differences that exist between the two markets and how multinationals such as Hewlett-Packard (HP) implement separate marketing strategies based on the distinctions that exist within the market and their consumers. PRODUCT DIFFERENCE (standardized vs. complex) Hewlett Packard (HP), famous for its laptops, desktops and printers and storage devices sells its products in both markets. The B2C market it operates is more standardized and less complex that its B2B counterpart. Large groups of individual customers exist whose specifications for the products are more or less...
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...BCG La compañía de transporte Transinc tiene negocio de B2B pero sin embargo está pensando en pasar al mercado de B2C porque parece que va a crecer de la ostia y tal. Entonces la primera pregunta es que estimes el tamaño del mercado B2B y los datos que te dan son los siguientes: -Ellos venden a 25€/envío (y cada envío tiene 5 packs) -Diariamente de cada uno de sus centros salen 10K packs tanto de B2B como de B2C (entiendo que en total 10k, vaya) -Operan 250 días/año -Sabes que esta empresa tiene 32 centros de recogida y 50 de distribución (ESTO ESTA EN UN DIBUJITO ABAJO Y LO NECESITAS, A MI SE ME PASO) -Transic tiene una cuota del 20% en el mercado B2B -1/6 de las operaciones que tienen son de B2C pero con un margen del 0% y no están haciendo nada para incrementarlo de momento -El margen del mercado B2B es 18% -El margen del mercado B2C es solo del 4% -El precio de un envío en B2B es 25€ -El precio de un pack (que no envío) en B2C es 3€ -B2C va a crecer a un 10% al año -El crecimiento de B2B se queda flat. Vale las opciones de la pregunta del tamaño b2b eran: a)400M b)40M c) y d) del orden de B el doc1 te daba un poco info general de transinc y los datos que te he dicho, el doc2 eran solo postits como de un workshop q decían eso q la empresa era la leche, q de momento hacían solo 1/6 de b2c sin sacarle profit (xq algunos clientes lo pedían), q iba a crecer 10% b2c, y que tenían optimizadisimo el tema de la carga de camiones y colección de pedidos ah por cierto hay preguntas...
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...Evaluating products and supplier performance performance Follow up on purchase B to C organization. Selling goods and services to customers like Amazon.com serve the customers directly. Amazon Retailer Customer In business to customers, the purchasing process is as follows: B to C buying process Identifying need Looking for information Checking for alternatives Purchase decision Post purchase evaluation Business-to-business (B2B) B2B describes commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer. Business-to-consumer (B2C) B2C (sometimes also called Business-to-Customer) describes activities of businesses serving end consumers with products and/or services. General Buying Cycle 1. Acknowledging the need 2. Awareness 3. Research 4. Consideration (the short list) 5. Evaluation 6. Purchase 7. Applications 8. The Experience 9. Reaction 10. Opportunity for advocacy Differences between B2B and B2C sales 1. Speed of Sales Process — B2C sale is typically faster 2. Number of Decision...
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