Specifics of the B2C sales model:
Posted: Sun Dec 22, 2024 8:34 am
High level of competition . There are many companies operating on this system in the market. In order to gain an advantage, you need to invest heavily in marketing.
Needs analysis . Also a characteristic feature of this model. Companies actively study the characteristics of the target audience, which is, in fact, the last link in the product distribution chain. Ordinary buyers (individuals) are the most massive segment of the target audience. Knowledge of their preferences, solvency, and typical behavioral reactions helps to significantly increase sales volumes.
Increased attention to the quality of service . You can stand out from your competitors not only with successful advertising campaigns, but also with the level of service. For example, building a customer base is possible through a convenient website or mobile application, friendly and responsive staff also increases lead generation. There are many ways to attract and retain customers: a flexible system of discounts and bonuses, after-sales service, etc.
Taking into account consumer psychology . Ordinary people can experience quite strong feelings when making a purchase. Therefore, it is important to create a favorable atmosphere conducive to the emergence of positive emotions. This will create an additional stimulating effect to conclude a deal. Advertising should be colorful, managers trained in the correct methods of communication with the buyer. A cozy atmosphere in stores also contributes to an increase in the number of paid orders.
Increase Your Profits by 10X: 5 Key Metrics You Must Track
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
After working with over 300 online projects , I can email lists uk guarantee: monitor these metrics weekly and your company will not only survive, but also increase its profits by 10 times!
In the context of sanctions and crisis, knowing the ROI of your advertising decides whether your business will be successful. Tracking these 5 critical indicators is the key to your prosperity.
What you get for free:
5 Key Metrics to Increase Profits by 220%
Advertising Channels Efficiency Calculator: Optimize Your Budget and Increase ROI by 70%
A Killer Commercial Proposal Template That Increases Conversion to Deals by 60%
We have prepared all the documents and templates with formulas for you. And yes, it is FREE:
Download documents for free
Already downloaded
153115
B2B
If trade occurs between companies, then this sales model is called B2B. The purchasing company uses the purchased product for its own production or resells it.
A good example of B2B is the team collaboration service Kaiten. The tools of this platform allow you to visualize work processes and organize the development of various projects.
B2B
Source: shutterstock.com
Quite a few organizations build their businesses following this model. For example, farms sell their products to stores, outsourcing firms perform a number of functions for the client company, and fabric manufacturers supply their goods to clothing factories.
Let us list the main characteristics of the B2B product sales model:
Documentation . Almost all stages of interaction between business entities require strict accounting. Therefore, buyers and sellers agree on the terms of the transaction.
Extended sales cycle . Discussion and signing of the contract, deliveries, payment methods and other nuances require much more time and effort than in B2C trading. There may be several responsible persons on both sides, so the opinions of each of them must be taken into account to approve the transaction. An extended sales cycle often leads to the conclusion of long-term contracts, the formation of long-term partnerships, so that the procedure of approval and execution of documents does not have to be started over again with each sale.
Large-Sum Transactions . There are many companies operating on the market that sign contracts worth tens of millions of rubles.
Small client base . It is obvious that there are far fewer commercial organizations than individuals.
Targeted advertising . Trade offers of companies are aimed at other companies. Therefore, the objects of marketing influence become a fairly narrow circle of enterprises occupying a specific niche.
Facts as the main incentive to place an order . Unlike B2C, when implementing a sales system according to the B2B model, the emphasis is not on influencing the psycho-emotional perception of the buyer, but on demonstrating reliability and impeccable business reputation.
B2G
A commercial structure can carry out a government order. In this case, the process of interaction between counterparties is described by a B2G sales model.
Cooperation with such private companies helps the state implement various social programs, offering the population goods (services) of the required level of quality.
A striking example of B2G is the largest corporation Boeing. The products of this manufacturer of aviation, space and military equipment are in demand by many government departments.
The state works not only with giants; even small companies can supply their products within the B2G model. Repairs in municipal clinics or schools, development of specialized software, sewing uniforms - all this can be done by private firms on order of state bodies.
B2G
Source: shutterstock.com
The distinctive features of this type of sales model are:
Conducting tenders . Manufacturers are selected on a competitive basis. Each of the interested companies offers its products that, in their opinion, meet the criteria of the technical task in the best possible way. After the tender, the customer concludes a contract with the selected seller.
Large orders . It is quite natural that the state will not limit itself to buying one syringe for a clinic. An order for a large batch will be made at once.
Strict reporting . When one of the parties to a transaction is the state, it is necessary to create and sign many documents. This is required by legal norms and regulations in order to control the allocated budget.
Long-term projects . All stages of interaction between the company and government agencies can last several weeks and even months.
Seller certification . Some product categories require licenses and other permits. The state only works with reliable, reputable suppliers.
The distinctive features of the main types of sales models are presented in the table below:
Criterion B2C B2B B2G
Purchase decision maker Consumer, sometimes collegially with relatives Top management Heads of state institutions after meetings with deputies, the finance department, and the procurement department
Speed of decision making Fast, sometimes spontaneous From a week to several months Up to 6 months
Contract amount Minor Big Giant
Sales volume Small Big Very big
Cycle duration Small Medium or large Big
Marketing For the relevant segment of the target audience For a specific company (or several companies) For government agencies
Consumer type Individual Enterprise Government agencies
Size of the customer base Big Minor Minor
Source of payment for the application (order) Buyer's personal funds Organization budget State budget
Needs analysis . Also a characteristic feature of this model. Companies actively study the characteristics of the target audience, which is, in fact, the last link in the product distribution chain. Ordinary buyers (individuals) are the most massive segment of the target audience. Knowledge of their preferences, solvency, and typical behavioral reactions helps to significantly increase sales volumes.
Increased attention to the quality of service . You can stand out from your competitors not only with successful advertising campaigns, but also with the level of service. For example, building a customer base is possible through a convenient website or mobile application, friendly and responsive staff also increases lead generation. There are many ways to attract and retain customers: a flexible system of discounts and bonuses, after-sales service, etc.
Taking into account consumer psychology . Ordinary people can experience quite strong feelings when making a purchase. Therefore, it is important to create a favorable atmosphere conducive to the emergence of positive emotions. This will create an additional stimulating effect to conclude a deal. Advertising should be colorful, managers trained in the correct methods of communication with the buyer. A cozy atmosphere in stores also contributes to an increase in the number of paid orders.
Increase Your Profits by 10X: 5 Key Metrics You Must Track
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
After working with over 300 online projects , I can email lists uk guarantee: monitor these metrics weekly and your company will not only survive, but also increase its profits by 10 times!
In the context of sanctions and crisis, knowing the ROI of your advertising decides whether your business will be successful. Tracking these 5 critical indicators is the key to your prosperity.
What you get for free:
5 Key Metrics to Increase Profits by 220%
Advertising Channels Efficiency Calculator: Optimize Your Budget and Increase ROI by 70%
A Killer Commercial Proposal Template That Increases Conversion to Deals by 60%
We have prepared all the documents and templates with formulas for you. And yes, it is FREE:
Download documents for free
Already downloaded
153115
B2B
If trade occurs between companies, then this sales model is called B2B. The purchasing company uses the purchased product for its own production or resells it.
A good example of B2B is the team collaboration service Kaiten. The tools of this platform allow you to visualize work processes and organize the development of various projects.
B2B
Source: shutterstock.com
Quite a few organizations build their businesses following this model. For example, farms sell their products to stores, outsourcing firms perform a number of functions for the client company, and fabric manufacturers supply their goods to clothing factories.
Let us list the main characteristics of the B2B product sales model:
Documentation . Almost all stages of interaction between business entities require strict accounting. Therefore, buyers and sellers agree on the terms of the transaction.
Extended sales cycle . Discussion and signing of the contract, deliveries, payment methods and other nuances require much more time and effort than in B2C trading. There may be several responsible persons on both sides, so the opinions of each of them must be taken into account to approve the transaction. An extended sales cycle often leads to the conclusion of long-term contracts, the formation of long-term partnerships, so that the procedure of approval and execution of documents does not have to be started over again with each sale.
Large-Sum Transactions . There are many companies operating on the market that sign contracts worth tens of millions of rubles.
Small client base . It is obvious that there are far fewer commercial organizations than individuals.
Targeted advertising . Trade offers of companies are aimed at other companies. Therefore, the objects of marketing influence become a fairly narrow circle of enterprises occupying a specific niche.
Facts as the main incentive to place an order . Unlike B2C, when implementing a sales system according to the B2B model, the emphasis is not on influencing the psycho-emotional perception of the buyer, but on demonstrating reliability and impeccable business reputation.
B2G
A commercial structure can carry out a government order. In this case, the process of interaction between counterparties is described by a B2G sales model.
Cooperation with such private companies helps the state implement various social programs, offering the population goods (services) of the required level of quality.
A striking example of B2G is the largest corporation Boeing. The products of this manufacturer of aviation, space and military equipment are in demand by many government departments.
The state works not only with giants; even small companies can supply their products within the B2G model. Repairs in municipal clinics or schools, development of specialized software, sewing uniforms - all this can be done by private firms on order of state bodies.
B2G
Source: shutterstock.com
The distinctive features of this type of sales model are:
Conducting tenders . Manufacturers are selected on a competitive basis. Each of the interested companies offers its products that, in their opinion, meet the criteria of the technical task in the best possible way. After the tender, the customer concludes a contract with the selected seller.
Large orders . It is quite natural that the state will not limit itself to buying one syringe for a clinic. An order for a large batch will be made at once.
Strict reporting . When one of the parties to a transaction is the state, it is necessary to create and sign many documents. This is required by legal norms and regulations in order to control the allocated budget.
Long-term projects . All stages of interaction between the company and government agencies can last several weeks and even months.
Seller certification . Some product categories require licenses and other permits. The state only works with reliable, reputable suppliers.
The distinctive features of the main types of sales models are presented in the table below:
Criterion B2C B2B B2G
Purchase decision maker Consumer, sometimes collegially with relatives Top management Heads of state institutions after meetings with deputies, the finance department, and the procurement department
Speed of decision making Fast, sometimes spontaneous From a week to several months Up to 6 months
Contract amount Minor Big Giant
Sales volume Small Big Very big
Cycle duration Small Medium or large Big
Marketing For the relevant segment of the target audience For a specific company (or several companies) For government agencies
Consumer type Individual Enterprise Government agencies
Size of the customer base Big Minor Minor
Source of payment for the application (order) Buyer's personal funds Organization budget State budget