B2C refers to the Business to Consumer sales model, and most Fast-Moving Consumer Goods (FMCG) products like soaps, shampoos, and oils, etc., are sold by this method. Thus, companies involved in this line of business pay special attention to marketing, and its success depends on choosing the right B2C marketing channels. Its main purpose is to promote goods and services to individual customers. For instance, the primary target of the marketing or advertising campaign of most FMCG companies is to increase their brand awareness and recall value. Read on to know more about the B2C business model and the marketing channels used for it.
What Is B2C Business Model?
B2C is the business model where commercial transactions or exchange happens between the company and individual customers. Apart from FMCG, the other major example of B2C business is online services like Amazon, and Netflix, etc. These businesses earn revenues by catering to the needs of individual customers. This is important as the marketing campaign is designed based on this understanding and the knowledge of what the customers consider important. This helps to develop targeted messages or advertisements that appeal to your customers.
How To Get A Clear Understanding Of B2C Business Model?
The ideal way to get a clear understanding of B2C or any business model is to use a business model canvas; it is useful for both small start-ups and big corporates. It helps to test and refine hypotheses, restructure cost structures, and so on, and this gives you a better understanding of the value proposition. Some important questions you must ask are:
- Who is your most reliable customer?
- Which of your customer related problem are you resolving?
- What is the price the customer is willing to pay?
- How do the competitors reach them?
- What is the ideal distribution channel to reach the customers?
The key to success in a B2C business model is selecting the right distribution strategy in business plan, and this varies according to the type of product.
What Is B2C Marketing?
B2C marketing refers to all the channels used for promoting the products and services sold to customers. They are used for bringing in new customers and retaining existing customers. Shared below are some popular B2C marketing channels:
- Paid search like pay-per-click (PPC), displaying marketing ad, and search engine marketing (SEM).
- Search engine optimization (SEO) where you create content on your website like blogs that rank high on the SERP’s for a given keyword.
- B2C email marketing is especially useful in the case of small businesses.
- Social media marketing.