Quick Summary
B2B refers to business transactions conducted between companies rather than between a company and individual consumers. It involves larger order values and longer sales cycles.
B2B (Business to Business) refers to commercial transactions and relationships between two businesses rather than between a business and individual consumers. Examples include manufacturers selling to distributors, wholesalers selling to retailers, or service providers serving other businesses.
Characteristics of B2B
- Larger Transaction Values: Orders are typically larger than B2C
- Longer Sales Cycles: Decision-making involves multiple stakeholders
- Relationship-Based: Long-term partnerships are crucial
- Rational Buying: Decisions based on logic, ROI, and specifications
- Complex Negotiations: Terms, pricing, and contracts are customized
- Professional Marketing: Content marketing, trade shows, LinkedIn
B2B Business Models
| Model | Description | Example |
|---|---|---|
| Manufacturer to Wholesaler | Bulk sales to distributors | Pharma company to distributors |
| Wholesaler to Retailer | Supplying to retail stores | B2B marketplaces like IndiaMART |
| Service Provider to Business | Professional services | Consulting firms, IT services |
| SaaS (Software as a Service) | Cloud-based business software | Salesforce, Slack, Zoho |
B2B in India
- B2B E-commerce: IndiaMART, Udaan, TradeIndia
- Enterprise Software: TCS, Infosys, Wipro providing IT services
- Manufacturing: Auto components, textiles, pharmaceuticals
- Financial Services: Corporate banking, insurance for businesses
B2B vs B2C Comparison
| Factor | B2B | B2C |
|---|---|---|
| Customer | Organizations | Individual consumers |
| Decision making | Multiple stakeholders | Individual or family |
| Order size | Large volume | Small quantity |
| Relationship | Long-term contracts | Transaction-based |
Key Points
- Transactions between businesses
- Larger order values than B2C
- Longer sales cycles
- Relationship-driven business
- Rational decision making
- Includes SaaS, manufacturing, services