AND DIFFERENCE BETWEEN B2B AND B2C MARKETS
Market segmentation is the foremost task done in selecting Target markets and is widely accepted as one of the primary aspect in Modern Marketing and Strategy Development.
A market consists of actual and potential buyers of product(s) or service(s) who have ability or willingness to buy the wants or needs which can be satisfied through an exchange relationship. Market Segmentation is the process where market is divided into subgroups of customers where members of each subgroup share certain similarities. Market Segment is a subgroup identified as a result of segmentation exercise. Members of each group have similar needs and purchase behavior. A target market is a subgroup of customers which the firm chooses and develop specific marketing offerings for.
If we take an automobile industry as an example, a market would include people willing to buy a vehicle following a market segmentation process- few distinct market segments could be identified. In this case we might identify segments like families and singled. And, a firm who manufactures sports cars would mainly target singled market.
DIFFERENCE BETWEEN B2B AND B2C MARKETING
Lot of people assume B2B (Business to Business) and B2C (Business to Consumer) Marketing as same thing but they are very different prospects of marketing. These two are one of the most important terms in marketing industry. In order to buy or sell your product or service in market you must know the difference among these two otherwise you would be scratching your head in frustration and wondering that what platform you should be using for buying or selling products/services in a market.
Let’s start with B2B (Business to Business) Marketing, it refers to the transaction between two businesses where both buyer and seller are business owners. For example, a person A owns a big business wants to buy products from person B who also owns a business. When a deal is made, both would get what they agreed on. A purchases large quantities of products from B in order to satisfy the demands of his local consumers.
Now, in B2C (Business to Consumer) Marketing, this refers to transactions between businesses and simple consumers. Again, let me explain you with an example, person C buys a product at a local store. As soon he has paid, the transaction is complete. It majorly includes people like you and me who buy products from basic store and use them.
Another example can be considered is a ecommerce website, which sells products and services to individuals around the world like Amazon, Flipkart, Uber etc.