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B2B classification and customer typology in B2C

The business sector involves different formats of interaction with customers, determining for each of them the most acceptable form of sales of goods and services and their acquisition. Conditional dividing the market into buyers of retail (individuals) and wholesale (legal entities) facilitates the process of interacting with customers, suggesting specific sales and action algorithms.

B2B - This English abbreviation stands for business to business. Simply put, this market segment involves the activities of manufacturers and importers who sell goods to dealer and distribution networks, and those, in turn, sell products to shops and retailers. The process of interaction between partners in the field of B2B involves complex supply chains and sometimes takes a considerable length of time.
B2C stands for business to consumer and encompasses the interaction of retail companies and customers, suggesting direct contact between them. Each of us daily takes part in the B2C chain, making purchases in shopping centers, supermarkets or online stores.

Criteria for distinguishing customers in B2B and B2C segments

Understand the specifics and characteristics of customers in each of the market segments will help the main criteria by which they are determined. At first glance, everything is simple: B2B are enterprises, firms, companies are legal entities, and B2C are ordinary consumers, buyers are us. But such a gradation is not objective, but superficial. Clients in the B2B and B2C segment are divided according to the following principles:

1. The purpose of acquiring a product or service
A B2C buyer buys a product in order to use it for its intended purpose. In other words, the incentive to buy is the pleasure of consumption. Products are purchased for personal or family use, and its consumer properties are considered the main qualities of the product.
In B2B sales, companies are also interested in consumer properties of products, but slightly different. Firms are looking at how the acquisition and subsequent sale of products can increase the company's profit, make the business successful, and the leaders of the company successful business people.
The classification of buyers, based on the objectives of the purchase, allows us to conclude that the B2B market and the B2C area are different. A B2C buyer buys a product to enjoy it. A B2C market representative buys a product to make even greater profit.

2. Who is the consumer in B2B and B2C segment?
In B2C, the client and the consumer are one and the same person, and in the B2B segment, the buyer is not a consumer, but only one of the links in the sales chain. However, often in the business sector decisions are made on the basis of personal interests, forming a favorable ground for such an unpleasant phenomenon as kickbacks.

3. Decision making principle
The more impressive the purchase price of goods for the company, the more employees (procurement department, management) participate in deciding whether to purchase. If we are talking about an ordinary buyer from B2C, then most of the decisions we make are based on the need to purchase, brand awareness, affordability, quality indicators.
Naturally, there are cases where the buyer analyzes the need for a new acquisition more thoroughly than the supply unit in the company, and the head is guided exclusively by emotions when concluding contracts for the supply of equipment. Nevertheless, decisions in the field of B2C are made more based on one's desires, and in the B2B sector, based on a thorough analysis.

4. Communication method
Different types of customers in the field of B2C and B2B have their own ways of interacting. For ordinary buyers from B2B, this is an advertisement aimed at informing potential customers about the advantages of goods, new products, interesting promotions and great offers. In B2B sales, individual negotiations are held, the most profitable business partnership schemes are selected, and business development prospects are determined.
For example, take refrigeration equipment for shops. Conducting advertising campaigns through the media is not very effective, since there is a low probability that there will be representatives of the target audience among viewers, radio listeners and Internet users. Personal interaction between the manager of a company that sells refrigeration equipment in the B2B sphere and potential customers is much more effective: managers and departments of equipment for shops, retail chains, restaurants, cafes, and catering enterprises.

5. The process of selling goods and services
Based on the above differences between the BTC and BTB segments, the successful sale of products and services in the B2C sphere depends on the presence of excellent consumer properties of the product, promotions, affordability, convenient purchase format and a well-established customer service work scheme. In the B2B market sector, the success of a sale depends on the experience and qualifications of the manager, product quality, and promising opportunities for increasing the company's profit after acquiring products.
Thus, interaction with B2B clients requires the manager to do more serious work, the ability to thoroughly cover the advantages of the offered goods, as well as the ability to negotiate, focusing on the benefits of the proposal. Success in working with ordinary B2C buyers requires the creation of active advertising campaigns that arouse consumers' desire to buy goods, satisfying the need for high-quality, modern and affordable products.

 

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