What is Business to Business (B2B) Marketing?
We know that Business-to-consumer (B2C) marketing is a very important branch of marketing. It attracts a lot of attention, especially since it is involved in our daily lives.
In our previous articles, we mostly covered B2C marketing. In this article, we will briefly talk about the other branch of marketing: B2B. (Which is also very important!)
Business-to-business marketing, although not drawing too much attention, is in a very important position for companies. The process plays an important role in any exchange between firms. A manufacturing company will need it to purchase production inputs, with better results or qualities, from another company. Likewise, when selling the products it produces to the companies that will carry them to the consumer market, the same manufacturing company will have to go through a negotiation process with these companies. Furthermore, a business-to-business marketing effort is needed once the distribution links are established.
In my previous article, I mentioned that personal selling is a very important part of B2B.
Sales representatives are very important resources indeed; they can be used to create lasting connections with other companies, but they can also quickly turn into high costs. Therefore, it would be wise to see personal selling as a two-edged sword.
In the business-to-business markets, customer relationships are very important!
Business-to-business purchases have much higher volume than B2C purchases. While a consumer can only buy a few packs of milk from the supermarket for that week; the supermarket will buy hundreds or even thousands of packages of milk from its supplier. Therefore, it will be very difficult to replace even a single customer in the business-to-business market.
Because of this, it is very important to manage the relations and communication between companies well.
If a decision made for a short term profit shatters the relations with a company, it can have devastating consequences in the long run. Therefore, we can say that establishing trust is a very important task for maintaining substantial business connections.
Agreements between companies are based on the decisions that the delegations of these companies will reach after long negotiations. These negotiation sessions include very important steps toward a lasting alliance. Specializations to be made on the order are discussed; a contentious process is initiated over the price, that will directly affect the costs of both companies; and a transaction specific to that purchase occurs.
Since many of the factors we need to evaluate in B2C will not be relevant in B2B marketing (for example, we can say that the appearance of the product will not have much value compared to its functionality), the negotiations between two companies will be formed by committees with expert knowledge regarding the production or sales processes of the relevant company.
In this article, we briefly explained Business to Business Marketing. We will explore this topic further in our next articles.
We wish you all a healthy day!