What is The Right Mix for Your Business? Every Startup Must Evaluate These Options

What is The Right Mix for Your Business? Every Startup Must Evaluate These Options

We identify three main classes and their composites

 

Your business can sell to consumers (B2C), or to another business (B2B), or to government (B2G) or a concatenation of them. So you can have B2B2C and B2B2G2C. The key differences are as follows:

 

B2C is traditionally:

  • Focused on mass marketing
  • Product-driven,
  • Aimed at maximizing the value of the transaction
  • A creator of brand loyalty through repetition and imagery
  • Reliant on merchandising and extensive marketing investment, social networking, and good public relations for reach and brand building

 

B2B is viewed to be:

  • Relationship-driven
  • Focused on maximizing the value of the relationship
  • Focused on a small target market
  • A multi-step buying process with a longer sales cycle
  • A system that creates brand loyalty through personal relationships
  • A system that uses educational and awareness building activities
  • A system that leverages rational buying decisions based on business value

B2G is simply B2B but the customer is a government entity

 

B2B2C blends B2C and B2B:

  • A multi-step buying process with a longer sales cycle
  • A system that leverages rational buying decisions based on business value
  • Focused on a small target market
  • Aimed at maximizing the value of the transaction
  • A creator of brand loyalty through repetition and imagery
  • Reliant on merchandising and extensive marketing investment, social networking, and good public relations for reach and brand building

The key to success is deciding where to play. In some markets, the best is consumer, while in others, it could be government. While developing your plan, know whom your customers will be.

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