What is BtoB?
BtoB refers to a business model in which businesses provide products and services to other businesses. Sometimes referred to as B2B.
Unlike BtoC, where companies provide products and services to general consumers, general consumers do not directly purchase them, but there are cases where they are indispensable behind the scenes of products and services. There are many.
For example, various products and services are supported by BtoB transaction formats, such as automobile parts, computer CPUs, corporate website construction services, and product packages.
Differences between BtoB and other business models
The crucial difference between BtoB and other business models is that the person providing the product or service cannot experience it as a recipient. More specifically, this means that representatives cannot directly “try” the product or service.
In the example above, the “PC CPU” is supplied by BtoB, and of course it is possible to measure numbers and performance such as processing speed and durability. However, since the CPU is actually sold after being built into a computer maker’s product, the actual performance of the CPU becomes difficult to see due to various factors such as memory capacity, performance of the board, and format of the storage device. Masu.
On the other hand, in the case of BtoC, products and services such as food and beverages that are often commercialized after being tested by the product development department of the manufacturer themselves, and clothing that can be tested until they are completely satisfied with their comfort. Developers and marketers can use it themselves as consumers, allowing them to directly confirm its quality as a consumer themselves.
For the reasons mentioned above, it is said that planning marketing and sales strategies for BtoB is more difficult than for BtoC.
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