B2C stands for business to consumer market wherein businesses sell their product or services directly to customers for household or personal usage. B2B stands for business to business market wherein businesses sell their products and services to other businesses for their consumption, resell or to use them as component in their own product or services. Differences between them are as follows: 1. B2B has oligopolistic competitive market and has fewer buyers to buy their product or services. B2C had monopolistic competitive market and has large number of buyers to buy their products or services. • Example: Companies like TATA steel has very fewer buyers as generally companies have their raw material or secondary material fixed from their respective dealers and in B2B market one company has few purchasers. Steel is used by construction companies so they are the target groups. Whereas companies like coca cola directly make soft drinks for customers, which can be directly marketed to the customer itself without any add-ons and there are large number of buyers. Bharat tin works is packaging company which makes tin cans which acts a add-on product for company like lakme, manekchand who store their product inside tin cans and sell the final product. 2. In B2B market, the buying behavior is very distinct. There are large order sizes with strong purchasing power and also the process of buying is lengthy and complex due to paper work and also risks are high due to bulk purchases. In B2C market, the customers have less purchasing power and the company sells small order sizes. The buying process is less complex and less risky. • Example: Wire Company in order to make wires purchase the raw material needed from another company in ... ... middle of paper ... ..., social media, radio etc. The wire company promotes through local billboards, brochures, trade shows etc. 6. In B2B, there is maintenance of relationship between buyer and seller. Relationship is given importance as functional involvement is there. Relations are stable. Whereas B2C the relationship is more transaction oriented. There are no personal relationship between buyer and seller. • Example: Tata supplying raw material to packaging company, they will have stable relation for years as they need to do business together and also their bond will be strong. Company selling biscuits to customer will not have personal relation with any customer as it serves large customers. The company which buys cotton from ginning company in order to manufacture shirts will try to maintain inter-personal relation as it needs to do business with the same company for years.
both B2B and B2C is that it gives to both business models a more effective control over theri customer
Considering infrastructure costs and their 12-person staff, StickK’s B2C business has not been profitable to date. The company may have a viable business model, however, by expanding its B2B segment while
This is all thanks to the company's ability to stay competitive in the world marketing competitive environment. "The competitive environment, also known as the market structure, is the dynamic system in which your business competes. The state of the system as a whole limits the flexibility of your business."-Stan Mack(CHRON) The ability to stay flexible in todays market has enabled company to create revenue through adapting to changing views of the consumers. Although the first thought when hearing the Coca Cola name is still soda, the trend of non-carbonated and sugary drinks is the most revenue producing products of the company today. Don't get it wrong, the company still has 4 name brand sodas that bring in over $1 billion apiece in revenue annually, but the most substantial revenue is the companies investment in non-carbonated and sugar-based drinks. Products such as Smart Water, Vitamin Water, and Fairlife Superkids(milk) are among the nearly 400 products produced by the company that are not soda-related.(Fortune) So even with soda sales at the 30-year low, The Coca Cola Company continues to adapt to the ever-changing competitive market environment and sustain its household name and
This threat is especially high when The buying industry has a higher profitability than the supplying industry. Forward integration provides economies of scale for the supplier. The buying industry hinders the supplying industry in their development (e.g. reluctance to accept new releases of products). The buying industry has low barriers to entry. In such situations, the buying industry often faces high pressure on margins from their suppliers.
The organization consists of cement manufacturing and importing, sugar manufacturing and refining, salt refining, flour and semolina milling, pasta manufacturing, noodle...
TATA Steel. "The Facts: Behind the Figures." The Whole Story: From Cradle to Grave (2011): 10-13. Print.
When the term business is mentioned, the first idea that comes into our minds is profit. However, before that profit is earned, other sectors of the “business” must participate. Every business should at least have the product and the idea about who should buy the commodity. What the business is selling is not important now but the one who buys it (customer) is. The customer is what we generally refer to market in business. Thus, every business needs to be fully aware of the market it serves. Every business has its own type of customers hence it has its own market model known as the market structure. Based on this idea, in business economics we have four types of market structures namely; Monopoly, Oligopoly, Monopolistic Competition and Perfect Competition market structures. Let us briefly explain these market
Online Auction e.g. eBay. In common with new online retail brands, before the emergence of Internet technologies, this concept was not possible. Essentially eBay is a Consumer-to-Consumer (C2C) business. For more information on how online auctions work, see the lesson on eMarketing and price.
Xia, M. & Xia, N. (2008) 'The Complementary Effects of E-Markets on Existing Supplier--Buyer Relationships in a Supply Chain', J.Manage.Inf.Syst., 25 (3), pp.9-64.
Although relationship customers also use the BAS system, it is more valuable for transactional customers. Since transactional customers emphasize more on quick delivery and low prices, but less on relationships, A/S focuses its efforts with the BAS system on providing the transactional customers with these values.
Both from the customer and the company point of view, each customer interaction is part of an iterative learning process (Ballantyne, 2004). Further, Yau et al. (2000) advocated that the relationships between business firms and its customers have been constantly encouraged as successful business practices worldwide. The strategy of relationship marketing is of high relevance particularly in the service industries because of the intangible nature of service and their high level of customer interaction (Al-Hersh, Aburoub, & Saaty, 2014). Relationship marketing is defined as the process of engaging in proactively creating, developing and maintaining committed, interactive and profitable exchanges with targeted customers (Haker, 1999). Furthermore, Gronroos (1990) asserted that relationship marketing is to establish, maintain, enhance and commercialise customer relationship so that the objectives of the parties involved are met which can be done by a mutual exchange and fulfillment of promises. Moreover, the implementation of the relationship marketing concept at the operational level refers to relationship marketing orientation (Hau & Ngo, 2012). Relationship marketing orientation indicates the firms’ philosophy of doing business concerning relationship building by propagating developing trust, empathy, bonding, and reciprocity between a firm and its customers (Sin et al., 2005a, b; Tse et al., 2004). Trust is an important element for a successful relationship between the firm and its customers (Berry, 1995). First, trust is an essential component for a successful relationship between the firm and its customers (Berry, 1995). Trust It refers to a willingness to rely on an exchange partner in whom one has confidence (Morgan & Hunt, 1994). Empathy, as a dimension of business relationship, enables the two parties to see the situation from
Although there is evidence to suggest that there exist some similarities, it would be wise to also point out the factors that differentiate the two markets. Business-to-business marketing concentrates on meeting the needs of other businesses, the demand for the products made by these businesses is likely to be driven by consumers.
Business models are possibly the most discussed and least understood facet of the web. Brokerage models, such as Priceline.com are market makers: they bring buyers and sellers together to facilitate transactions. Priceline.com leads the way to a unique new type of e-commerce known as a "demand collection system". Priceline.com is the world's first online buying service through which consumers name the price they're willing to pay. Leveraging the unique attributes of the Internet, Priceline.com finds sellers willing to meet buyers' needs and price.
Relationship marketing is a part of the marketing concept and strongly applies to this article. A company wants to build trust with its customers in order to build customer loyalty and a long-term bond. This gives the customer a value-added feature of doing business with a particular company. In marketing orientated companies, the customer's needs have to be targeted and different social classes or issues need to be taken into account. If a company does not take different sensitive and social groups into account when marketing, then they will not build a feeling of goodwill with the consumers. The consumer will think that the firm cares more about selling its goods than the consumer.
Business to Business Application is the relationship between to businesses or companies. It is used to perform financial and commercial transactions over...