The crucial question that companies should ask when finding a target market is whether they address to other businesses or consumers. Business to business (B2B) refers to organizations selling their services or goods exclusively to other companies (Reklaitis & Pileliene, 2019). In B2B, sales have longer sales factors, higher value orders, and usually are more complex. The example of a B2B company is Xerox that provides print and paper services to other businesses. Business to consumer (B2C) refers to organizations that sell their products directly to customers. Market size for this type of seller is limited by the geography of where the product is being sold or the county, city, or country population. For example, if the company sells clothes, it will be distributed across the country, or even further, while stretching classes will be known only locally. Adidas is one of the numerous examples of B2C companies that sell clothing, accessories, and sneakers. The customers at which businesses aim to sell their products are called target markets (Kotler & Keller, 2016). Thus, Adidas’s target market is those who do sport or like this kind of clothing, while the target market of stretching classes is those who want to become flexible.
Another aspect that affects the difference between B2B and B2C is a decision-maker. In B2B, there is usually more than one person who makes decisions (Reklaitis & Pileliene, 2019). That is why knowing these people and the process is essential in this type of sector, whereas in B2C, there is only one person who decides whether to purchase the product or not. I am participating in a B2C environment because I regularly buy goods or use services.
References
Kotler, P., & Keller, K. L. (2016). A framework for marketing management. (6th ed.). Pearson.
Reklaitis, K., & Pileliene, L. (2019). Principle differences between B2B and B2C marketing communication processes. Sciendo. Web.