Question

Topic: Student Questions

Difference Between Btb And Btc

Posted by Anonymous on 12/19/2006 at 1:17 AM ET 50 Points
Hello,

I a doubt about the difference between BtB and BtC.

If a company sells products to a multiple retailer (a chain of shops), is this BtB or BtC?

Thanks for the answer.

Daniele
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  • Posted by wnelson on 12/19/2006 at 1:29 AM Accepted
    Daniele,

    What makes a difference in B2B versus B2C is in who the end customer is, not the sales channel partners. The end customer primarily is whose needs you are satisfying, who you design the product for. If you are selling an article of clothing through a distributor to a wholesaler and then to retail chains, it's still a B2C offering because the end user is the consumer, not the businesses in between.

    This is not to say that you don't look at the needs of the channel partners too. For instance, in consumer electronics, the packaging is designed to work well with distributors - cartons are recyclable, bar codes are place on the outside of the package and cartons, the size and weight of cartons are designed for certain shelving, etc. The channel partners can make a difference in sales by not selling the product if you don't meet their needs. In this way, they appear like a "customer." But it's still the end customer that makes it a B2B or B2C.

    I hope this helps.

    Wayde
  • Posted on 12/19/2006 at 5:31 AM Accepted
    B2C- selling to end users
    B2B- selling to businesses who sells your products to end users

    Hope this helps.
  • Posted by wnelson on 12/19/2006 at 4:38 PM Member
    Daniele,

    B2B products are built into another product by the customer. At the end of the line, someone probably uses the food chain of B2B stuff to build something for a B2C consumer. Sometimes, a company can be both. For instance, maybe I'm selling ball bearings to a machine maker. The machine maker builds a machine to build car doors. A car manufacturer builds doors and many other parts and makes a car in Japan. The car goes to an importer who ships to the US. The importer sells to a distributor who sell to dealers. I am a B2B as is the machine manufacturer. The car manufacturer is a B2C and a B2B - fleet cars can go to businesses too, since the primary customer is the consumer, then it's B2C. Actually, the car manufacturer may have a B2B division dedicated to business customers.

    If you look at the importer and distributor, they are B2B companies. The dealer is probably both B2C and B2B also.

    OEM sales are not always B2B. In the computer industry, Dell is an OEM - original equipment manufacturer. They are primarily B2C - about 90% of their sales are to consumers. They are also B2B because 10% goes to business. On the otherhand, companies like Quantum in Taiwan are ODM - original design manufacturers - because they specify,design and manufacturer notebook computers for HP. HP resells them to consumers. Quantum is a B2C, primarily, because computers go to comsumers (mostly). HP is a B2C (mostly) for the same reason. OEM and ODM really signify who owns responsibility for the design, for the most part.

    It gets complicated in the real world, but in general, if the product is designed for the consumer, it is a B2B product and company. If it goes to a business who makes something else, it's a B2B product.

    Wayde
  • Posted on 12/20/2006 at 10:33 AM Accepted
    I think it's as simple as the sales and marketing channel you are using.

    If you promote yourself B2B with B2C oriented sales and marketing, you're still promoting B2B first encouragiing them to let you get to the B2C channel. I wouldn't think you could use the same message to reach both channels.

    B2C to me would be a direct line to the consumer.

    B2B to me would be a product solely for business or using the B2B relationship as a channel to the B2C.

    You could also take a direct line to the consumer who begins demanding the product from business in which case it would B2C as the channel to the B2B :)

    True or false?

    I think it's as simple as knowing who you are talking to and why.
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