B2B, B2C , B2G and B4B are the terms often used for referring to the business model or to outline marketing strategy of their organization to service different segment of their business-customers.
Nowadays, Government use these terms quite often when it wish to categorize the business sections in its notifications or circulars for the applicability of the rules and regulations. A very good example is E-Invoicing regulations not only in India but outside India as well. There remains a special mention and definition of these terms in the notifications and circulars issued from time to time by relevant authorities. During introduction of e-Invoicing in India, following statement was eye-catcher – Businesses registered under the GST system must use e-invoices for all B2B transactions.
B2B: Business to Business (B2B) transactions are the trade between business entities, business groups , companies or firms. This marketing term is often used for referring to the business involving large quantities of goods and services normally with manufacturers, wholesalers, distributors, dealers, consignors, retailers etc.
Example:
- BI-C-RIDE LTD has a segment of customers who purchase bi-cycle and its spares for the consumption into their own business. Either these business use the spares in the assembly/production of new/refurbishment of bi-cycles or for the reselling of bicycles to their dealers. This segment is B2C customer segment and the marketing strategy, pricing, CTC i.e. commercial terms and conditions, discounts, payment terms are different for this segment when compared with B2C and B2G customers.
- Amul Dairy commonly sells milk and other milk products to online portals/vendors such as Big-Basket, Zomato are B2B transactions since these are done in large quantities for onwards selling to end-consumers.
Nowadays, it is quite normal to use such terms in office meetings/discussions for devising/communicating marketing/business strategies within/outside organization.
B2C: Business to Customer (B2C) transactions are the trade between business entities and customers normally who intends to do the final consumption and not for re-sell of the goods or services. This marketing term is often used for referring to the business involving small quantities of goods and services normally with consumers.
Example:
- BI-C-RIDE LTD has a segment of customers (through its company owned showroom and workshops) who purchase bi-cycle for their own consumption for their own usage. This segment is B2C customer segment and the marketing strategy, pricing, CTC i.e. commercial terms and conditions, discounts, payment terms are different for this segment when compared with B2B and B2G customers.
- The E-Commerce companies portal where individual customers select and order for various items to purchase for their consumption.
- The food restaurants offering their food and services to individual consumers.
B2G: Business to Government (B2G) transactions are referred to the transactions that are done with the Government or its companies, establishments, agencies etc. Like B2B, the quantities involved in such business transactions are quite high and thus requires special set of conditions such as pricing, packaging, payment terms, discounts etc.
Example:
- BI-C-RIDE LTD has a few customers like Central School, Ministry of social justice and empowerment. This business segment is B2G customer segment and company has a different set of business strategy like pricing, CTC i.e. commercial terms and conditions, discounts, payment terms are different for this segment when compared with B2B and B2C customers.
- Amul Dairy selling milk and its various other milk products directly to Army canteen, Police welfare departments, Government Hospitals are covered into this category.
B4B: Business-for-Business refers to end-to-end business model and working towards consumers ultimate need fulfillment. B4B can be understood as extended version of B2B. Here more than one company come together to help each other in different aspects for the value creation. Zomato, Uber, Ola, Netflix etc. are some companies that are involved in value creation chain by their engagement with multiple businesses/service providers and with end-consumers.
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