Sales Models in Business and Digital Business: What Is It in Simple Words and How Do They Differ
3 min read
If you are planning to develop a digital business, then you must be well-versed in existing sales models. Digital business is hard work, so if you are tired, you can relax and visit the Avalon78 login website.
Thousands of companies were forced to close because an incorrect model was chosen when developing a development strategy or this factor was not taken into account at all. In order not to repeat such an unenviable experience, we will tell you in simple words about the features of the B2B, B2C, B2B2C, B2G, and D2C directions.
Read to the end and you will find out how they differ and which option is best suited for a particular business.
What is B2B?
B2B (business to business) is a business segment aimed at cooperation with other companies. Within this model, the product can be a means of production, consumables, outsourcing support, as well as many other goods and services. The scale of a B2B business can be very different.
For example, this area includes large enterprises that produce automatic marking lines. But also in this segment, small service centers can operate that provide printer maintenance services to printing companies.
What is B2C?
B2C (business to consumer) is a model that provides for doing business, the product of which is aimed at the direct end consumer. The target audience is represented by individuals who buy goods or services for personal consumption.
Supermarkets, online stores, hairdressers, dental clinics, and many other companies operate in the B2C segment. What is the difference between B2B and B2C? In the field of business to consumer, there are usually more customers, but the average check is less. In the B2C segment, sales are effectively stimulated by advertising with appeals, since the desire to buy can arise spontaneously.
What is B2B2C?
B2B2C (business to business to consumer) is a sales model that provides for the organization of close cooperation between the main business and auxiliary companies. Their joint activity is always aimed at meeting the needs of the end-user of the product.
A striking representative of B2B2C can be considered an online pizzeria that cannot sell its product without the mediation of a delivery service. Manufacturers of plastic windows work in the same segment, which delegate delivery and installation to third-party contractors. The main difference between B2B and B2C is that the B2B2C format allows you to concentrate on activities, and transfer non-core business processes to specialized contractors.
What is B2G?
B2G (business to government) is a business model that assumes a focus on selling goods or providing services to government agencies.
The B2G segment has the following characteristic features:
- tender mechanism of supplier selection;
- high level of transaction security;
- the significant impact of the administrative resource;
- specific payment mechanisms for goods and services;
- strict regulatory regulation of all processes;
- a fairly high level of competition.
What is D2C?
The D2C (direct-to-consumer) sales model provides for the organization of a complete chain – from production to sale to the end consumer. The format is quite complex, but recently more and more companies are trying to adapt to it.
The attractiveness of the segment is explained by the fact that in classic models distributors and retailers receive a significant part of the revenue. If the business performs its functions independently, it will be able to receive more financial resources for development. The D2C model allows you to remain confident that the product will be positioned in the best way at the stage of delivery and implementation.
Confectionery and dairy companies that sell their products through a network of branded stores can serve as an example of working in the direct-to-consumer format.
Results
Now, when you come across the concepts of B2B, B2C, B2B2C, B2G, and D2C, you will understand exactly what these business models are and how they differ. Also, this knowledge will help you choose the right strategic model for running your own business.
