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The Differences Between B2C and B2B

By May 23, 2019 August 28th, 2019 No Comments

There’s no doubt you’ve come across the acronyms B2C and B2B, because you likely work for a company that serves either or both sectors – but do you know the true distinctions between the two?

Let’s start by defining each acronym, which will help us understand these commonly used business terminologies a bit better. B2C is short for “business to consumer,” and B2B is short for “business to business.” These define a company’s customer base.

B2C companies focus on providing consumer goods to the general population – people like you and me, who purchase their products and services for personal use. Examples of B2C companies include Coca-Cola, Nike, Netflix, Tesla and Apple.

Business-to-business companies provide services and products that enhance the daily operations of other businesses – for example, cloud storage, physical security solutions and computer hardware. Examples of B2B companies include Salesforce, IBM, Dropbox and Slack.

Aside from the fact that B2C and B2B companies serve different audiences, a couple of other differences set them apart.

First, B2C companies further define their consumer base according to demographics: gender, age, education, occupation and geographic area. These demographics help B2C companies better serve their current customer base, as well as target new ones, with the products and services that they provide.

Demographics also help B2C companies provide the right marketing campaigns to their target audience(s) by allowing them to understand and classify the types of people who purchase their products and services.

B2B companies classify the businesses to which they sell their products and services by company size (e.g., one to 100 employees, or one to 1,000 employees) and revenue. Knowing their customers’ company size and annual revenues helps B2B companies understand the type of sales cycle, type of product(s) to provide, and customer care needed.

While these are only the most basic distinctions between the two sectors of businesses, having an understanding of how they differentiate will help marketing and PR teams assist their clients with targeted campaigns and content.

Yvonne Gonzalez

Author Yvonne Gonzalez

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