Business to Business Marketing (B2B)
In most situations, marketing is defined as the process whereby products move from the manufacturer to the consumer. People who work in marketing are in many ways working in advertising, as they want the individual consumer to make a purchase and buy the finished product. In business to business marketing, both the buyer and seller within the equation are companies rather than individuals. Advertising will typically appeal to the bottom line rather than on a fleeting desire for a product like an individual consumer might have. Read on for five things that make up business to business marketing.
In B2B Marketing Goods and Services Are Still Exchanged
Just like in traditional marketing, the end goal of business to business marketing is to sell some kind of good or service and is usually classified into these two subcategories: goods marketing and services marketing.
. Examples of business to business marketing might include selling raw materials to a manufacturing company or even paper sales to a book publishing company. In both examples, every part of the equation is a business or organization. However, there is still a need to be met and an item that is bought or sold.
B2B Marketing- Extended Sales Cycles
When a product like a pair of jeans or a new car is sold to a consumer, the cycle typically ends after the purchase. With business to business marketing, however, the cycle is much longer. Sales may be in monthly installments and the relationships that are formed will be long-lasting. If you are selling cotton to a clothing manufacturer, for example, your sales will not be a onetime deal. Instead, you will sell large amounts often in order to provide the company with the materials they need to constantly produce items.
Business to Business Marketing is all about the Numbers
Advertising to a private consumer might pull on the heartstrings or use expensive commercials and advertisements to attract attention. In business to business marketing, the process is much more based on the bottom line. Companies need to make calculated decisions about their supply chains that can provide them with income and that will make their products and services profitable for themselves. Although marketing is still important, the bottom line will ultimately be the most important factor. Although cost is one factor in the bottom line, supply continuity and reliability is a major factor that can affect the bottom line as well. After all what good is the lowest price if it arrives two-weeks late and the factory remains idle all that time. When marketing to a business you have to consider what could possibly affect their bottom line and market to meet all those needs.
Business to Business Marketing has Different Advertising Venues
Typically, advertisements for a finished product for a consumer might include television spots, billboards or magazine spreads. Advertising or marketing to a business, however, will involve very different techniques. A large portion of business to business marketing is done over the internet and includes social media, websites, Internet searches and more. Expos, fairs and manufacturer organizations also play a large role in business to business marketing.
Understanding the Supply Chain
The supply chain is the term for the movement of raw materials and labor into the final product. For a T-shirt, the supply chain might start with the designs, the raw cotton materials, the thread, the factory manufacture, the wholesalers and finally the individual retailers. Understanding where your business exists on the supply chain is vital for business to business marketing.
Business to business marketing is an important part of the manufacture process. Before items can ever be advertised to individual consumers, they need to be made thanks to every step of the supply chain.
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