Every firm wants to offer their customers a product, a service, or both. The type of product or service a company offers and the sector it operates in might affect who its clients are. Customers of a firm may include both businesses and individual consumers.
What is business-to-consumer?
Business-to-consumer sales and marketing, or B2C for short, is a sort of commercial transaction in which a company sells its goods or services directly to the customer who will utilize them. Without using a wholesaler, this technique is selling a good or service directly to the customer, which enables the business to cut costs overall and increase profit margins. Small to midsize businesses that don’t require the strength or backing of a wholesaler typically find the business-to-consumer approach to be the most successful.
Business-to-consumer commerce history
In order to directly engage consumers through television advertising, Michael Aldrich pioneered the business-to-consumer commerce model in 1979. In the past, the main forms of business-to-consumer trade were retail sales, infomercials, and dining out. The business-to-consumer commerce paradigm started to evolve into the widely utilized e-commerce model with the development of the internet, though.
Due to consumers’ ability to buy the same things at their same price online, many conventional brick-and-mortar stores are no longer able to operate as they once did. This has affected how they do business and altered how popular e-commerce has become.
Types of Business-to-consumer marketing
The majority of people picture business-to-consumer sales when they think of a corporation that offers goods or services. Due to the ease that e-commerce offers consumers, business-to-consumer trade has grown stronger as technology has progressed. But there are five distinct types of business-to-consumer trade. Each category has its own advantages and characteristics, and some businesses use a variety of B2C business strategies to connect with their customers. The basic types of Business-to-consumer marketing include:
- Direct sellers
- Online intermediaries
- Community-based models
- Advertising-based models
- Fee-based models
One of the most well-known types of business-to-consumer trade is direct selling. Online retailers known as direct sellers utilize websites to market their goods to clients directly. Product producers and e-tailers are the two subcategories of direct sellers. Manufacturers of goods utilize the Internet to bypass retailers, distributors, and other middlemen when distributing their goods to customers. E-tailers are online stores that sell goods from their own warehouse stock or the stock of another business. E-tailers like department stores frequently sell their products through both online retail stores and physical storefronts.
Online middlemen serve as brokers for consumers, helping them connect with sellers. Online middlemen do not produce or own the goods or services they sell. A website that gathers data from a number of other websites in a certain industry and displays a number of purchasing options to customers in one spot, such as online travel websites, is an example of an online middleman.
A specific product or service is marketed to a specific target population using community-based business-to-consumer models, which harness the power of online communities created around shared interests. For instance, many businesses leverage social media websites’ communities to develop marketing tailored to particular demographics. Businesses that have developed goods or services for a particular set of people can engage with their target market using community-based models.
Business-to-consumer models that rely on advertising offer free material to encourage users to their websites. Visitors will then encounter paid adverts on the website as they read through the submitted material. High-quality content is a powerful tool for attracting significant amounts of traffic to a website, which is then used to sell advertising space to businesses. This is how advertising-based business-to-consumer models work. Large media sources that do not require a subscription fee for access to their content are an example of a business-to-consumer model that is based on advertising.
In contrast to business-to-consumer commerce models based on advertising, fee-based business models charge users a membership fee for access to their good, service, or website. Online streaming services and media outlets that need customers to have a paid subscription in order to access their content are examples of fee-based business-to-consumer commerce models.
Some businesses, such as major newspapers and magazines, employ a fee-based business strategy to entice customers to their website by offering a limited amount of content for free and then persuading them to subscribe in order to access the full range of their content.