Business-2-Business Vs Business-2-Consumer

Business-2 Business

VS

Business-2-Consumer

Charletta Key

EBUS 400 - E-Business

Mark L. Schlam, M.S.

June 22, 2006

Business-2-Business VS Business-2-Consumer

Just about every business today has a web site. Weather they are doing business with other businesses or selling directly to the public, a business today needs to have a web site. This paper will discuss Business-2 Business (B2B), Business-2-Consumer (B2C). The paper will look at the marketing concept, and the similarities and differences of brick-and-mortar and eBusiness. Every business, rather online or at a physical site, falls in one of the following categories.

A Comparison of Business-2-Business

and Business-2-Consumer

B2B and B2C are very similar, in fact, "B2B typically takes the form of automated processes between trading partners and is performed in much higher volumes than B2C applications". (Reference.com, 2006). As B2C is "the retailing part of e-commerce and is often contrasted to B2B. (Whatis.com, 2006). B2B and B2C each has five classifications in which businesses fall under. B2B classifications are; "company web site, product supply and procurement exchanges, specialized or vertical industry portals, brokering sites, and information sites". (Whatis.com, 2006). B2C classifications are; "direct sellers, online intermediaries, advertising based models, and fee based models". (Reference.com, 2006).

B2B and B2C Classifications

Business-2-Business Classifications

According the definition information on Whatis.com B2B can be classified in the following categories;

"Company Web sites, since the target audience for many company Web sites is other companies and their employees. Company sites can be thought of as round-the-clock mini-trade exhibits. Sometimes a company Web site serves as the entrance to an exclusive extranet available only to customers or registered site users. Some company Web sites sell directly from the site, effectively e-tailing to other businesses.

Product supply and procurement exchanges, where a company purchasing agent can shop for supplies from vendors, request proposals, and, in some cases, bid to make a purchase at a desired price. Sometimes referred to as e-procurement sites, some serve a range of industries and others focus on a niche market.

Specialized or vertical industry portals which provide a "subWeb" of information, product listings, discussion groups, and other features. These vertical portal sites have a broader purpose than the procurement sites (although they may also support buying and selling).

Brokering sites that act as an intermediary between someone wanting a product or service and potential providers. Equipment leasing is an example.

Information sites (sometimes known as infomediary), which provide information about a particular industry for its companies and their employees. These include specialized search sites and trade and industry standards organization sites". (Whatis.com, 2006).

Business-2Consumers Classifications

According to Wikipedia B2C classifications are as follows;

"Direct Sellers Companies that provide products or services directly to customers are called direct sellers. These types of B2C companies are the most well-known. There are two types of direct sellers: e-tailers and manufacturers.

E-tailers: Upon receiving an order, the e-tailer ships products directly to the consumer or to a wholesaler or manufacturer for delivery. Example: Amazon.com

Manufacturers: The manufacturer sells directly to consumers via the internet. The goal is to remove intermediaries, through a process called disintermediation, and to establish direct customer relationships. Disintermediation is not a new idea as catalog companies have been utilizing this method for years. Example: Staples.com markets and sells directly to the consumer, and there is no middleman. Products are ship directly to the consumer from the Staples warehouse.

Online Intermediaries Online intermediaries are companies that facilitate transactions between buyers and sellers and receive a percentage of the transaction?s value. These firms make up the largest group of B2C companies today. There are two types of online intermediaries: brokers and infomediaries.

Brokers - A broker is a company that facilitates transactions between buyers and sellers. =Types of Brokers:=

Buy/Sell Fulfillment A corporation that helps consumers place buy and sell orders, like eTrade or Smith Barney. The difference between these two companies is the eTrade is a completely online service and Smith Barney is a physical company and was around before the internet became a way of life.

Virtual Mall - A company that helps consumers buy from a variety of stores, like Yahoo! Stores. Shopping.Yahoo.com is a store where you can shop till you drop and never leave the house. They offer everything you can imagine and more.

Metamediary - A firm that offers customers access to a variety of stores and provides them with transaction services, such as financial services. Example: Hotwire.com or Webflyer.com. Both of these websites offer a host of services to the consumer to allow for assistance and easy bookings of hotel, airfare, and other travel arrangements needed for the perfect vacation. Another source of services is "ImproveNet". This is a service website that displays various contractors so that the consumer may find a contractor for that improvement project on their home. These contractors have been "prescreened to create the most effective, comprehensive and targeted internet marketing solution for residential contractors while providing consumers with better choices for their home improvement projects". (ImproveNet.com, 2006).

Bounty - An intermediary that offers a fee to locate a person, place, or idea. Example: BountyQuest (now defunct).

Search Agent - A company that helps consumers compare different stores. Example: MySimon.

Infomediaries - An infomediary is a firm that acts as a filter between companies and consumers. Individuals provide infomediaries with personal information