Business+customers+versus+consumers.


 * Module 3**


 * Business customers versus consumers**

B2B (Business to Business) model differs from B2C (Business to Customer) model by its purpose, marketing approach, value chain, buying decision and customer support.

When a company makes product for business customer, it has to add value (make money) to his/her business. If the product is for consumers than it has to add value (fun, pleasure) to their lifes. Accordingly the relationship, the way of communication and the value chain are different. Business customers are approached directly via marketing representatives and deals are made directly. Buying decision is made on collective level by senior executives. Usually few big customers account large percentage of company's revenue. Unlike them consumers are approached indirectly via different types of advertisements in communication's media. They can buy the product in warehouses or supermarkets, thus the value chain is more complicated, going via retailers. Buying decision is made on individual level and every customer represents small percentage of company's revenue. B2B products are customized according to the particular needs of the customers, while B2C products are same for all consumers.

The other difference is customers support. In B2B environment particularly in high-tech market, there are large customers support departments which are available (offer support to customers) 7 days per week, 24 hours per day). Individual consumers do not have such a strong support.

In very general terms B2B market is more rational based on logic, while B2C market is more emotional based on liking.