B2B marketing is the abbreviation for "Business-to-Business". We can translate it as "company-to-company" or "firm-to-firm" in Turkish. B2B's marketing and trade model includes intercompany purchases,
where companies are buyers and sellers. Generally, we can say that there are three different B2B trade models:
The first model includes selling a physical product from one company to another. For instance, a company supplying various raw materials can sell its products to another company that uses these raw materials in its production.
The second model includes the sales of services among companies. Consultancy companies providing consultancy to companies or agencies with advertising and marketing services can be given as examples of this model.
Lastly, the third model includes the sales of software. This model includes software integrations, CRM tools, and software updates & projects.
B2C means 'Business-to-Consumer'. In Turkish, it is translated as "Producer-to-consumer". Here, the seller is the company, while the buyer is the consumer.
Producer companies often sell their products on online marketplaces or eCommerce platforms in this model. Today, eCommerce platforms are widely used, becoming popular in society. Accordingly, popular platforms such as Amazon and eBay can be given examples of the B2C model.
The B2C marketing mainly includes two different models:
The first is the trade made via online marketplaces. Online marketplaces allow companies to sell their products on their platform in return for a commission.
However, the second model includes the trade made via eCommerce websites. Aiming to boost their profits by not paying commission fees to online marketplaces, companies draw customers' attention to these eCommerce websites to close sales.
The C2C marketing is the abbreviation for "Consumer-to-Consumer".
. It also means the same in Turkish. In this model, the consumer is both the buyer and the seller. We can consider this model the sales made among end-users. Here, consumers sell their products as new or second-hand products on online marketplaces or eCommerce websites.
Differences Between B2B vs B2C Business Models
Since the B2B model parties are companies, they make contracts after evaluating the product and price with specific parameters they use in their business. However, in the B2C model, customers have a subjective approach.
The business continuity between two companies in the B2B business model is considerably longer than the one between the company and the customer in the B2C.
Also, the B2B business model provides a higher chance of negotiating the product price compared to B2C.
Differences Between B2B vs C2C Business Models
In the B2B business model, both parties are legal entities. In the C2C model, however, the parties are natural persons.
In the B2B model, the pricing policy of the product or service to be traded is determined by considering various parameters and financial issues. However, the pricing policy in the C2C model is determined by the traditional pricing policy specified by the general population.
While the services or products in B2B are constantly growing and developing based on the industry, the C2C products are often in limited quantities.
In this blog post, we have touched upon the business models we always encounter in business life. At Softtech Ventures, we would be happy to be by your side through your stimulating entrepreneurship adventure to make the world beautiful together. Remember to follow us on our social media accounts as well :)
See you soon and stay healthy!
Fatih Berk Şener
Digital Marketing&Law Assistant Specialist