B2G and B2C marketing The MyConn video presents two key markets that the company operates within: the Business to Govern

B2G and B2C marketing

The MyConn video presents two key markets that the company operates within: the Business to Government (B2G) markets and the Business to Consumer (B2C) markets. MyConn needs to know the difference between these markets and what Shark Investors prefer to make the right conclusions about the company’s development.

And what exactly differentiates the MyConn B2G market from the MyConn B2C market?

B2G market means business buying or selling of goods or services between the companies and government organizations. In this market structure, MyConn would offer products or services directly to the government at the federal, state, or local level to meet certain needs. Usually the B2G market consists of large, long-term contracts with governments and is usually tender-based. (Skare et al., 2023). The companies operating in the B2G environment and intent on delivering on their promises face the challenge of compliance with the most stringent regulatory environment in the world. Competition: Government contracts are more common than those of a business market since they are bigger and last longer. When a firm such as MyConn signs the contract with the governmental institution, it can be sure it will receive regular payments because governments rarely fail to pay their contractors, while contracts themselves appear rather long-term. The B2G, on the other hand, has its own challenges, which are, for example, a long procurement cycle and high entry barriers, which may make it difficult for some players to venture into this segment.

The B2C (Business to Consumer) market, on the other hand, focuses on reaching the common end-user. In this market, MyConn would target selling goods and/or services that are necessary and/or wanted by the general public. Thus, the B2C market is much more dynamic than the B2G market, and any company needs to be constantly adjusting to the customers’ needs. In the B2C market, there is high competition, thus the need for businesses to spend lots of money in marketing in order to capture the market. The B2C market has potential for very high growth, especially where a particular product is becoming liked or trends are going in a particular direction. That is why it provides more variability as the consumers’ preferences and demands change faster.

Which one do the Shark Investors prefer, B2G or B2C?”

In relation to investor interest, the figures show that the Shark Investors seem to be more keen on the B2G market. This is due to the security, apart from stability, that comes with the supply of goods and services in the government. (Hy-Conn Inc., 2019). Government procurement is also commonly characterized by contract length, which may be longer than the consumer market’s supply chain. Also, the contracts being tendered could be quite large than those found in B2C market segments, and this is crucial, especially for investors seeking large returns. The B2G market is also a low-competition market because of the higher regulatory hurdles and contract specifications needed; thus, once strong, companies like MyConn will have less competition.

In conclusion, based on the opportunities observed in B2G and B2C markets, we can state that awareness is the key to success; however, when the Shark Investors prefer the C2C market, they do this purposefully, leaving the safe and relatively stable B2G market for themselves. 

References

Hy-Conn Inc. (2019). Hy-Conn inventor Jeff Stroope on Shark Tank. YouTube. From: https://www.youtube.com/watch?v=F1wFxUiLkjo

Skare, M., Gavurova, B., & Rigelsky, M. (2023). Innovation activity and the outcomes of B2C, B2B, and B2G e-commerce in EU countries. Journal of Business Research, 163, 113874.