Many people often use the term 'business to business (B2B) marketing,' but most of them do not know exactly what it refers to. B2B activity, both online and offline, involves the marketing of services and goods that help other companies operate. Manufacturers, resellers, the government and non-profit institutions are the most common examples of B2B markets.
Converting prospects into customers is an important objective of B2B marketing. A few B2B companies do make some money off a customer base. But most of their capital is made off other businesses. A non-profit institution is a good example. Its operations normally depend on private donations from individuals. The organization also makes the great mass of its money through government funding or from corporations. Due to this reason, a non-profit institution makes itself and its services or products attractive not just to the public, but also to other entrepreneurs.
A business to business marketing company normally focuses on relationship building and communication through marketing activities, producing leads that are fostered during the sales cycle. The decision to purchase is typically a multi-step process that involves more than one person. Therefore, companies use marketing strategies to teach various players in the target group. Components, equipment, raw materials, processing services and supplies are marketed. Since B2B marketers target only other businesses, they have considerably more targeted markets than B2C marketers.
B2B marketing is now one of the fastest developing fields of marketing. New technologies bring more businesses together; thereby companies start to court each other far more sharply. Technology also makes the world a smaller place. So it becomes essential for sales and marketing experts to understand and apply the principles of B2B marketing. With B2B, one should know the requirements, the present situation, competitors, trends, technology and costs involved. Besides traditional offline approaches, B2B uses an integration of online tools such as email marketing, online communities, CPC (cost-per-click ads) and pop-up or banner advertisings. Below are most common questions we have been answering:
1. What are a few business to business marketing features?
In B2B marketing, transactions are made between and within value chains. It has a small numbers of customers who require personalized marketing, including customized products and prices. Selling processes are complex and lengthy, and involve lots of players creating a demand decision chain. B2B is also noted for developing profitable, value-oriented relationships between two companies and several individuals within them.
2. What is a B2B marketing strategy?
It is a set of programs coupled with the target market opportunities in order to achieve organizational goals. Shaping this strategy involves three steps - target market choice, setting marketing objectives and building the B2B marketing program.
3. What are some similarities and differences between B2B and B2C?
B2B and B2C marketing are totally different. B2C or Business to Consumer marketing discloses, sells or markets services or goods to a group or target consumer. It is product driven and maximizes the value of the transaction. Repetition and imagery create its brand identity.
But the marketing programs are same for these two categories. Examples are events, direct marketing, internet marketing, advertising, public relations, word of mouth and alliances. The two categories differ in behaviors such as how the programs are executed, what they say and the product of the marketing activities. Both B2B and B2C have the same initial step in developing a marketing strategy.
4. What is a B2B buyer?
A B2B buyer understands your services or products better than you do. He wants to buy them to help his business remain profitable, competitive and successful.