business-to-business

Examples of business-to-business in the following topics:

• B2B Channels

  • Business to Business (B2B) marketing refers to a market where other businesses, not end consumers, are the purchasers of the goods and services.
  • All these are considered business to business transactions.
  • Like Business-to-consumer marketing, business to business also employs different channels, such as e-commerce or physical stores.
  • Many business-to-business transactions involve large sums of money, because generally the business will buy in large quantities.
  • One of the major differences between business-to-business (B2B) transactions and business-to-consumer (B2C) transactions is the type of online (e-commerce) interaction.

• Categories of Business Products

  • Business-to-business (B2B) describes commerce transactions between businesses, such as between a manufacturer and a wholesaler or a wholesaler and a retailer.
  • Component Parts: Manufacturers produce products, from raw materials to component parts, which they then sell at a profit.
  • Business Services: Service businesses offer intangible goods or services and typically generate a profit by charging for labor or other services provided to government, other businesses, or consumers.
  • There are many other divisions and subdivisions of businesses.
  • The authoritative list of business types for North America is generally considered to be the North American Industry Classification System (NAICS; pronounced "nakes").

• Alternative Arrangements

  • Business-to-government, consumer-to-consumer, and institutional markets are additional types of marketing channels.
  • The most common marketing channels are business-to-consumer (B2C) and business-to-business (B2B).
  • These include business-to-government, consumer-to-consumer, and institutional markets.
  • This is also known as "public sector marketing" and is somewhat similar to business-to-business transactions.
  • Institutional markets are very similar to typical business-to-business markets.

• Business Marketing

  • Business marketing is the practice of organizations facilitating the sale of their products or services to other companies or organizations.
  • Business marketing is the practice of individuals or organizations—including commercial businesses—facilitating the sale of their products or services to other companies or organizations that in turn resell them, use them as components in products or services they offer, or use them to support their operations.
  • Also known as industrial marketing, business marketing is also called business-to-business marketing, or B2B marketing, for short.
  • Business-to-business (B2B) markets differ from business-to-consumer (B2C) markets in many ways.
  • But think of all the transactions Dell had to go through to sell you that one computer.

• Defining Business Marketing

  • Business marketing includes all activities involved in communicating the value of a business's products and services to another business.
  • Business marketing is the practice of individuals or organizations (i.e., commercial businesses, governments, and institutions) promoting and selling products and/or services to other organizations.
  • Like business-to-consumer (B2C) marketing, business-to-business (B2B) marketing, or business marketing, relies on product, price, placement, and promotion to competitively position the product offerings, promote the brand, and efficiently use company resources.
  • Because B2B sales tend to be much larger than consumer purchases, business marketers use different channels to reach their target audiences.
  • Therefore, CRM systems help business marketers integrate metrics from different activities to accurately assess how marketing directly contributed to the transaction.

• Organizational Online Buying

  • Business to business commerce, manufacturers, wholesale-retail relationships, suppliers, vendors; all cogs in in the wheel of industry, were among the first to embrace online services and reap the rewards.
  • Today, online B2B services have become an integral part of business to business and business to consumer marketing strategies while originally its use was restricted to industrial/ capital-goods applications only.
  • Businesses must market their goods and services to other businesses exactly the same way a retailer must market to its end user or consumer.
  • Businesses use sales tools, advertising, direct sales, in-person sales forces and multi-media to market their products to other businesses, much of which is now conducted on line.
  • The only difference being that the consumer or end user is another business as opposed to an individual.

• B2B vs. Consumer Marketing: Similarities and Differences

  • Consumer marketing, or business-to-consumer (B2C) marketing, sales are made to individuals who are the final decision makers, though they may be influenced by family members or friends.
  • A business marketing, or business-to-business (B2B) marketing, sale is made to a business or firm.
  • However, business marketing generally entails shorter and more direct channels of distribution to target audiences.
  • For example, a business marketer may allocate spending to banner advertising or paid search.
  • Marketing to a business and marketing to an individual are similar in terms of the fundamental principles of marketing.

• Types of Businesses

  • American economist Milton Friedman once famously proclaimed that "the business of business is business. " Capitalist economies such as the United States rely on businesses to legally produce capital from the trading of goods and services.
  • Businesses also vary by industry due to the wide variety of products and service they offer to the market.
  • The following industry classifications are usually applied to businesses:
  • Service businesses offer intangible goods or services and typically generate a profit by charging for labor or other services provided to government, other businesses, or consumers.
  • Transportation businesses deliver goods and individuals from location to location, generating a profit on the transportation costs.

• B2C Channels

  • A business-to-consumer market, or B2C, is the sale of goods and services from individuals or businesses to the end user.
  • There are two main channels for business-to-consumer selling.
  • The other main channel for business-to-consumer selling is e-commerce, or commercial activity conducted via the Internet.
  • Business-to-consumer e-commerce reduces transaction costs by increasing consumer access to information and allowing them to find the most competitive price for a product or service.
  • Define a business-to-consumer market, and the strategies marketers use to target consumers

• Strategic Business Units

  • Many companies feel that a functional organizational structure is not an efficient way to organize activities so they have re-engineered according to processes or strategic business units (SBUs).
  • An SBU may be a business unit within a larger corporation or it may be a business unto itself.
  • General Electric is an example of a company with this sort of business organization.
  • Managed as separate businesses, they are responsible to a parent corporation.
  • Diagram the role and functionality of a strategic business unit (SBU)