The document outlines the key differences between B2B (business-to-business) and B2C (business-to-consumer) models, emphasizing their distinct marketing strategies, purchase processes, and company sizes. B2B transactions are characterized by complex, multilevel decision-making and focus on professional relationships, while B2C involves direct, short sales aimed at a broader consumer base. Additionally, it highlights the unique requirements and mindsets needed for professionals working in these different business environments.

1. Basic differences between
B2B and B2C Businesses
Anita Ray
Experienced writer and blogger at Marvist Digital
Marketing. Marvist offers professional services to
SME market segments.
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2. Business model of any company is defined as either B2B (business-to-
business) or B2C (business-to-consumer) based on its marketing approach. If
a company is doing business with another company for selling its products
and services or for exchange of information then we say it is following B2B
model.
Examples include, CA firm offering audit services to companies, advertising
agencies helping other businesses with graphic design needs etc. On contrary,
if the final customer is consumer rather than business like in restaurants,
retail stores and e-commerce websites, then it can be termed as B2C.
These two business models are entirely different to work with and require
varied outlook, discipline and skills. A person having B2C mind-set may feel it
very difficult to adjust and work in a professionally driven B2B environment.
For better understanding, let us discuss the basic difference between B2B and
B2C business concepts
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3. Business infrastructure
The business process in B2B is streamlined to customize the end product or
service according to the need because the customer is valued much due to
higher cost of sales.
To make things easier, sometimes businesses also integrate their system
processes to the client business so that they can handle the requirements
with more efficiency.
Generally, businesses in B2B focus on maximizing the relationship using
various marketing activities to convert the prospects into customers. It is
quite opposite in case of B2C where business have to deal with large number
of people with different outlooks.
The business transaction in B2C is product driven and companies focus more
on merchandising activities to convert the shoppers into buyers. Here, there
is a little chance of retaining customers for long as the sales are short and less
valued.
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4. Purchase process
The purchase process in B2B typically is complex & multilevel, and may even
take months to make decisions on a particular product or service. Since the
purchase is meant for company's use involving large capital, sometimes
members from different group take part in making decisions on the need and
budget.
There is also a possibility that a person who has the authority to select the
product may not hold the power of responsibility in making the final purchase
decision.
The decisions on the products & services in B2B is based on the business
expertise and credibility of the company.
B2C sales are direct, short and sometimes involve the emotional way of
approach to convince the customer unless it is an online purchase.
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5. Size of the company and target market
B2B companies are generally small in size and mostly deal with companies
belonging to same vertical markets to do the business. Dealing with B2B
environment requires high level of maturity as every person involved in the
business process has refined professional outlook.
It typically deals with far fewer but much larger buyers than the B2C market
does. Due to this reason, B2B companies employ less manpower to work on
the projects, but focus on hiring professionals having unique specialization
with good problem solving and decision making skills.
B2C companies are generally large as they have to deal with large targeted
markets.
Since the buying process is shorter, they don't emphasize more on
professional or technical skills but employ people who work aggressively and
consistently to close the sales cycles as quickly as possible.
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6. Corporate and non-corporate B2B business
Not all B2B business segments and markets have professional and corporate
environments. Within B2B, there are two subsets of the marketplaces, one
exclusively focusing on professional corporate environment while the other is
non-corporate.
Just as there is difference between B2B and B2C, B2B corporate and non-
corporate are also very different in their frameworks.
For instance, a business between a CA firm and a limited company is
professional corporate whereas the business supplying furniture to a shop is
not considered as professional and corporate B2B even though the
transaction is between two businesses.
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7. Knowing the difference between B2B & B2C professional and non-
professional concepts are very helpful for choosing a right company to work
and avoid workplace misunderstandings and aggravations.
A person serving B2C market feel very difficult and awkward to fit into a
professional corporate environment. It is important for everyone working in
an organization to be clear on - what kind of organization they are working in
and what type of community they are serving.
Unless people understand the environment in which they are working, it
becomes hard for them to get adjusted to the workplace demands.
Why is knowing B2B & B2C professional and non-professional
concepts important
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8. Marvist Digital Marketing, a 10 year old premium company, has established a
special niche for their high-end professional service to the small and medium
enterprise market segments in US & UK. Over the years, Marvist served
nearly 1000+ medium firms with its expertise and innovative approach that
offered true economic value to the customers.
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