Acronyms such as B2B, B2C, B2B2C and B2B4C determine some ways of doing business worldwide. In short, you can choose between two paths: selling to consumers or selling to companies.
However, there is no denying that trade has become much more complex than these superficial relationships. Today, it is possible to count on new tools and business methods.
Therefore, it is essential to know the types of business models to create more efficient solutions in your company. Next, we will explain more about these four models. Good reading!
What Is A Business Model?
The business model is how an organization creates and delivers value to its customers. This is a macro view of all the steps that make up the actions carried out by the company.
Although it is a relatively simple concept, many managers still need to be convinced when it is necessary to document the business step by step.
The most widely used methodology for structuring a company’s business model is the Business Model Canvas, or simply Canvas.
Created in the 2000s, the methodology is a graphical tool that allows you to visualize the pillars of the organization’s functioning. For example, the most attractive customer segment for the business, sources of revenue and the cost structure of all operations. The Canvas also proposes the definition of five other areas of action that are fundamental to the functioning of the business. By identifying the types of business models, such as B2B, B2C, B2B2C and B2B4C, it is possible to clarify doubts and bring good insights to your organization.
What Are The Main Business Models (B2B, B2C, B2B2C and B2B4C)?
First, the types of business models that exist are about more than just time-to-market implementation. This is because they have lived and been formed since before the digital era.
This implies a lot in the way they were created, developed and applied. The most disruptive business models also ended up using these first models as a basis for exploring new business possibilities. Next, we will explain the B2B, B2C, B2B2C and B2B4C models.
B2B Business Model
In this model, the focus is on selling solutions from company to company. It does not involve the end consumer—for example, wholesalers, industrial suppliers, mining companies, and service providers, among others.
There are also several B2B companies in the services sector, such as outsourcers, consultancies, and agencies.
Therefore, the buying and selling process aims to meet the company’s needs so that it can serve the end consumer.
In business-to-business, the company that sells must demonstrate that its product or service is good. Next, you need to find ways to convince the buyer that you offer the best value for money for a long-term relationship.
B2C Business Model
In this case, the product or service is intended for the end consumer, such as clothing stores, beauty salons, supermarkets, and restaurants. Unlike B2B, which has a relationship focused on the rational, in B2C, the sales action has greater emotional appeal.
This model is also known as “direct sales”, which involves a consumption operation carried out directly for the consumer. It is the most common type of business, covering all retail and its numerous segments, including e-commerce.
In B2C, it is possible to segment consumers into groups, create personas and think of offers that meet the needs of specific audiences. Furthermore, it is possible to have several communication channels to communicate with them.
B2B2C Business Model
B2B2C is the combination of the two previous acronyms: B2B and B2C. In other words, it defines a company that targets other companies.
In other words, it is when a company offers the product or service directly to the consumer but with an intermediary channel, such as a marketplace. As an example, we can mention Mercado Livre or Submarino.
By paying a commercial and service fee, companies use these platforms to reach the end consumer. In other words, they take advantage of the entire structure of the virtual space and benefit from marketing campaigns and attractiveness from other brands.
In short, a B2B2C company is a type of business in which commercial transactions happen from company to company and then to the target audience.
The B2B4C business model exists to help other companies, but it also benefits the consumer. The mission is to solve day-to-day problems for operators, ensuring a better experience for the end customer.
In this business model, it is essential to know the consumer’s journey, that is, all the steps they face before completing a purchase. With this data, it will be easier to optimize all company sectors, ensuring superb quality in final delivery.