B2B VS B2C
BUSINESS
MODEL
B Y: - N A I N A R A N I
INTRODUCTION
B2B BUSINESS MODEL
Businesses that sell products or services to other businesses.
Example:- Salesforce
Founded: 1999
Headquarters: San Francisco, USA
Industry: Cloud Computing / CRM Software
Salesforce provides Customer Relationship Management (CRM) software and
other enterprise cloud solutions to businesses of all sizes, including small startups,
medium enterprises, and Fortune 500 companies.
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• Product Offering:
• CRM software
• Sales automation tools
• Marketing platforms
• Customer service solutions
• Analytics and AI (e.g., Salesforce Einstein)
• Target Customers:
• Businesses looking to manage and automate customer interactions and data.
• Example clients: Adidas, Amazon Web Services (AWS), American Express.
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• Revenue Model:
• Subscription-based SaaS (Software as a Service).
• Tiered pricing based on number of users and features.
• Upselling additional modules and integrations.
• Customer Relationships:
• Dedicated account managers
• Long-term contracts
• Customization and onboarding support
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• Sales Cycle:
• Lengthy and complex
• Involves demos, multiple decision-makers, and negotiations
B2C BUSINESS MODEL
Businesses that sell directly to individual consumers.
Company: Netflix
Founded: 1997
Headquarters: California, USA
Industry: Entertainment / Streaming Services
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• Product Offering:
• Subscription-based access to streaming content.
• Original content (e.g., Stranger Things, The Crown).
• Various plans (Basic, Standard, Premium).
• Target Customers:
• Individual viewers and households around the world.
• Accessible via TV, mobile, tablet, or PC.
• Revenue Model:
• Monthly subscription fees.
• No ads in most regions (though ad-supported plans now exist).
• Global pricing strategies.
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• Customer Relationships:
• Self-service model via app or website.
• Personalised recommendations using AI.
• Focus on user experience, ease of access, and content variety.
• Sales Cycle:
• Short and instant—users can subscribe within minutes.
• Decisions are emotion- and entertainment-driven.
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Category B2B B2C
Audience Other businesses Individual consumers
Sales Process Relationship-driven Product-driven
Price Sensitivity Less sensitive, value-focused Highly sensitive to price
Marketing Strategy Educate, build trust Engage, entertain
Typical Sales Size Larger contracts/orders Single or small purchases
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Conclusion:
•B2B and B2C are two distinct business models based on the target audience. B2B
focuses on selling products or services to other businesses (e.g., Salesforce), with
longer sales cycles and relationship-based marketing. B2C targets individual
consumers (e.g., Netflix), relying on quick decisions, emotional appeal, and mass
marketing. Understanding the differences helps businesses tailor their strategies
for success.
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