Fundamental Differences Between Two Types of B2B and B2C Businesses
Understanding of business in general can not be separated from the activities of production, buying, selling, and exchanging goods and services involving people or companies. Whereas in a narrower context, the notion of business is often associated with businesses, companies, or organizations that produce goods and services to generate profits or profits.
When a business is built, one of the main focuses that needs to be matured is the target market. Determining the target market of the business is the key to business development because business models and strategies for developing the business depend on their target customers.
There are two basic types of business namely Business to Business (B2B) and Business to Customer (B2C). know more fully about the differences between the two.
Business Objectives & Business Interests
Fundamental Differences Between Two Types of B2B and B2B Businesses The purpose of a business is to serve the needs of customers and try to make a profit. In general, everyone runs a business because he sees an opportunity to create goods or services that have not been offered by other companies. It also can be influenced by the desire to produce goods that are cheaper than other companies. Thus, the opportunity to get profit can be more open because it can provide goods and services for consumers. There are five parties involved in a business. Namely the owner (owner), creditors (creditor), employees (employees), suppliers, (suppliers) and customers (customers).
Know the Types of Business
The Basic Difference Between Two Types of B2B Business and B2CBusiness to Business is a business transaction that is carried out electronically or physically and occurs between one business entity to another. B2B is the sale of products or services provided by one business and is intended for other businesses, not to consumers. For example, you run a business that sells groceries and you sell to restaurants or culinary businesses. This is called B2B because your business or service is for other companies, not directly to individuals or groups.
In contrast to Business to Business, Business to Customer is a business that provides services or sales of goods or services to individual consumers or groups directly. In other words, this type of business is directly related to consumers not companies or other businesses. For example, you have a groceries business. When you sell goods to individual consumers, it means your business is B2C. However, if you sell large quantities of groceries to other businesses, your business is B2B. In general, almost all B2C products can become B2B products. Whereas B2B products are used very little by individual consumers directly.