Please follow the tutorial below and make references to the books and link below for your research paper.
B2B means business to business. B2C means business to consumer. B2B - transactions between two businesses where both the buyer and seller are business owners. Hence, in B2B environment, the product is not sold to end users. Buyers purchase products in large quantities to satisfy the demands of their local consumers.
Key players involve manufacturers, resellers, retailers and institutions such as governments. For instance, local and provincial governments. Firms also sell to the government. (Source: Grewal et. Al 2008)
B2C - transactions between a business and end-user/customer. An example of B2C can be a convenient store. The store is a business which sells products to local consumers or end users.
Generally, the differences between B2B and B2C markets can be seen through the analysis of market characteristics, product characteristics, the buying process involved and the market mix.
B2B: (Source: Grewal et. Al 2008)
Generally fewer customers, geographically segmented
Orders are large and demand is more frequent
Products that are purchased are technical in nature and are based on specifications.
Emphasis on delivery time and technical assistance
Buying processes are involved competitive bidding, complex financial arrangements, qualified buyers, multiple participants in the buying process.
Direct selling and physical distribution important
Price is also often negotiated
For example, buying process includes need recognition, product specification, Request for proposal (RFP) process, proposal analysis and vendor/performance assessment.
Expand on the points above.
Based on the above, one can deduce that B2B focuses on relationship building among businesses, multi-step buying process, and rational decision-making. The B2B market has a thirst for knowledge and they are information seekers. Most effective marketing message will focus on how your product or service saves them time, money and resources.
B2C: (Source: http://apextwo.com/b2b-vs-b2c-marketing-difference-why-it-matters/)
• Product driven
• Maximize the value of the transaction
• Large target market
• Single step buying process, shorter sales cycle
• Brand identity created through repetition and imagery
• Merchandising and point of purchase activities
• Emotional buying decision based on status, desire, or price. Focus is on the benefit of the product. Consumers don't want to work to understand your benefits; instead they will want you to clearly point out the benefits to them. Your most effective marketing strategies will focus on the results and the benefits that your product or service will bring to them.
Very helpful information (Source: Gillin & Schwartzman ...
The difference between Business to Business and Business to Consumer market.