What is B2B Marketing?
Business to Business marketing is the marketing of products to businesses or other organizations for use in the production of goods or for use in general business.
The main things you should consider for B2B business are:
1. Incorporate Relationships
2. Intensive trade negotiations
3. Pay special attention to after-sales services
4. Genuine technical interactions.
To successfully create a B2B marketing strategy, we must first identify which category our business falls under. The sales categories are grouped into three types, with the majority of businesses falling into one of them:
1. Industry Experts:
Companies that are Industry experts usually sell all their products or services to companies from the same industry. For example, Process engineering companies will focus on the petrochemical industries.
2. General Suppliers:
A general supplier sells products or services to all kinds of companies. Example: Companies that sell office supplies, office furniture manufactures, etc.
3. Companies specializing in supplying products to distributors:
Companies in this category collaborate with distributors who specialise in marketing and increasing sales.
Difference between B2B and B2C Business marketing:
• Size of B2B vs B2C
Small vertical markets make up most of B2B, offering thousands of sales opportunities.
In contrast, B2C marketplaces often have millions of options, compared to the billions available in B2B marketplaces.
• Purchase Process
In B2B, sales are usually complex. In B2C, sales are less complex depending on the product or service.
• Sales Process
B2B sales process usually consumes a lot of time. However, in B2C, sales are faster.
• Purchase Decision
Brand identity in the markets is built-in B2B firms through personal interactions and long-term sales.
Brand identity in the markets is developed in B2C enterprises, however, through advertising, and now through social media.
• Long-term customer value:
Because of the higher production cost and the likelihood of recurrent or complementary sales to the same client in B2B, customers have a substantially higher long-term value.
In the B2C world, however, a customer’s long-term significance is lower due to reduced production costs and the fact that several companies are battling for the same clients.
Advantages of B2B Marketing:
§ The Company has to deal with companies and not a higher number of clients.
§ The total sales value will be higher.
§ Once the companies become your client, they will continue to work with you for a longer period of time.