B2B v B2C

Question 1

B2B - Benefit (5)

Answer 1

1. B2B will mean they use below the line promotion to build long lasting relationships
2. They can receive repeat orders of their products
3. Develop a reliable cash flow to improve reliability & efficiency
4. More Attractive to banks and can get lower interest rates
5. Link to Liqudity

Question 2

B2B - Drawback (5)

Answer 2

1. B2B tends to focus on a smaller pool of customers
2. As there are less businesses than individual customers (not spread risk)
3. Business may produce less output
4. Lower Capacity Utilisation
5. Link to Unit Costs

Question 3

B2C - Benefit (4)

Answer 3

1. Wider range of potential customers
2. As there are more consumers than businesses
3. If marketing is successful, increased SV
4. Link to EOS

Question 4

B2C - Drawback (3)

Answer 4

1. Targets a wider pool of customers
2. Likely to have a range of substitutes and alternatives
3. Link to Price Elasticity