Business Models

The business model defines how a company intends to generate revenue through offering products on the market. The design of the product or products is arbitrary within the legal framework. The two basic models are selling goods and offering services. These two basic models can be combined and designed in almost any way. For sonsumption goods the market parameters are different than for capital goods, and different for the sale of goods than for the sale of use or the sale of services. If the objective of a company is to maximize the number of customers and the revenue per customer, it depends on the product(s) how these objectives can be achieved. This is where the 4 Ps of integrated marketing come into play: product, price, promotion and distribution model.  
The positioning and the position in the market in combination with the available products and resources available determine how the individual business model of a company is designed. This has implications for the company, its partners and its customers.