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In the business world, you see different types of things based on the economy, environment and conditions. A business consists of following categories:

• Two or more businesses,
• Business and a consumer,
• Business and an employee and
• Two or more consumers

Furthermore, businesses move from real life to internet business and even telemarketing business. A popular name for internet business is “e business”.

The business entities include corporations, cooperatives, partnerships and sole traders mainly. These types are related to the private sector primarily important to the owner and workers. However, they can be found on governmental level especially in countries with capitalist economies. Following is a basic discussion on Business-to-Business (B2B) and Business-to-Consumer (B2C) types.

As clear by its name, B2B links two businesses. For instance, a B2B transaction can be between a manufacturer and a wholesaler. In the example, both are reasonably business people in spite of the wholesaler being the client of the manufacturer. Thus, in most businesses links, excluding cooperatives and partnerships, there is always a consumer and business. However, it does not mean that every business is a Business-to-Consumer (B2C) type.

Looking at the history of the term Business-to-Business or B2B, it was originated to differentiate electronic communication between businesses and enterprises from communication between businesses and consumers.

In a nutshell it can be said, that B2B is a cyclic process since the purchasing of any product does not bring the marketing to an end. Under this type, the product is bought by another business for selling with or without any alterations. A business remains B2B type until it ends a point.

When you are buying something or you are doing business with the sales person, then you are known to be a “consumer” whereas the sales person is a businessman. The term “B2C” is an abbreviation of Business-to-Consumer” in other words; B2C is transaction that occurs between a company and a consumer.

B2C transaction would take place when you are at one of your favorite stores buying a bag from a retailer. B2C is a non-cyclic process that ends at a certain point, unlike B2B (business-to-business). There are numerous examples of B2C; most of them are set by business owners. Just how it sounds; B2C is a link between a company and consumers. It is a direct business among the retailer and a consumer where a consumer demands for his requirements and needs. Business-to-Consumer (B2C) can be done on internet, over the telephone and marketplaces.

Whatever maybe the business type, consumers remain at the highest process of business. The whole market is dependent on them since the business runs according to their needs and requirements. A firm can run only one type of business or involve all the types, but at the end. B2C is the most crucial thing on which all the other businesses are dependant.