EB - Business Models Lesson

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Business Models

Introduction

Business Model Thinking Map

There are two main business models – business to business and business to consumer. The image shows how the two compare. Business to consumer is when a business sells to individuals. Business to business is when a business sells to other businesses. The two have excellent customer service, consistent and customer-centric sales process and a customer loyalty goal in common. The B2C is product driven; large market; simple and short buying process; have a single decision maker; uses merchandising and point of purchase actions; generally, have lower product knowledge and short-term relationships. The B2B is relationship driven; has smaller, focused markets; have a longer and more complex buying process; have multiple decision makers; use relationship building and customer education to sell; require a high level of product knowledge and build long-term relationships. 

Business to Business (B2B) Relationship driven small and focused market complex and long buying process multiple decision makers relationship building, customer education high required product knowledge long-term relationship customer loyalty goal consistent and customer centric sales process excellent customer service Business to Consumer (B2C) product driven large market simple, short buying process single decision maker merchandising, point of purchase actions low product knowledge short term relationship excellent customer service consistent and customer centric sales process customer loyalty goal 

B2B and B2C Sorting Challenge

 

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