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B2B Marketing
B2B marketing or business-to-business marketing involves the sale of one company's product or service to another company.
Refers to the marketing of products or services to other business and organizations.
It holds several key distinctions from B2C marketing, which is oriented toward consumers.
B2B Marketing intended for?
Any company that sells to other companies. This can come in many forms:
software-as-a-service (SaaS)
subscriptions,
security solutions
tools
accessories,
office supplies
Organizational Buying
Organizational buying is defined as the decision-making process by which formal organizations establish the need for purchase products and services and identify, evaluate, and choose among alternative brands or alternative suppliers.
Business marketers need to embrace the holistic marketing principles just like building strong relationships with their customers, proper Integrated marketing with the 4 P's or more than that similar to any other marketer operating in a consumer market.
Business Market and Consumer Market
In the previous unit, Business Marketing, is defined as the marketing of goods and services to industrial/ business customers for use in the production of goods and services that are eventually offered to the end consumers.
Thus, B2B Marketing is fundamentally different from consumer goods or services marketing because buyers are not the end consumers of the products / services.
Business marketing
Business Marketing refers to the sale of either products or services or both by one organization to other organizations that further resell the same or utilize to support their own system.
Consumer marketing
on the other hand, refers to the transaction of goods and services between organizations and potential customers.
CATEGORIES OF PRODUCT IN CONSUMER MARKET
1. Fast Moving Consumer Goods (Abbreviated as FMCG)
2. Consumer Durables Goods
3. Soft Goods
Fast Moving Consumer Goods (Abbreviated as FMCG)
Fast moving consumer goods are items that are sold quickly to the end-users generally at nominal costs.
Example - Aerated drinks, grocery items and so on.
Consumer Durables Goods
Goods that a consumer uses for a considerable amount of time rather than consuming in one use are categorized under Consumer Durables.
Consumer Durables are further categorized into - White Goods and Brown Goods
White Goods - (Refrigerators, Microwaves, air conditioners and so on (Majorly all household appliances)
Brown Goods - (Television, CD Players, Radio, Game Consoles (Majorly used for entertainment and fun)
Soft Goods
Soft goods are products which have a shorter lifecycle, and their value decreases after every usage shirts, clothes, shoes
Examples of Business Marketing (industrial marketing)
Office furniture (Cabinets, desks, workstations, drawers) - End user will not purchase workstations for his own use at home.
Bulk SMS service (utilized by organizations)
In business marketing, marketers deal with lesser number of individuals as compared to consumer marketing where one has to deal with the mass market.
Generally, a single employee of one organization would be appointed to deal with the concerned employee of the other organization (client). He does not have to interact with the entire organization.
Organization A sells laptops and desktops to Organization B (A case of B2B marketing).
Tom from Organization A has to deal only with either the IT professional or the administration representative.
Organizations dealing with consumers need to interact with every individual who is a potential end-user.
Industrial marketing is more focused as compared to consumer marketing.
Business marketers generally deal with sophisticated employees whereas it is not at all necessary every end user in consumer market would respond to marketers politely.
Business buyers generally are educated and well informed.
In consumer market, your buyer can be anyone- educated, uneducated, labor and so on.
Business marketers themselves need to be well spoken and polished. They must have a pleasing personality and good convincing power
Characteristics of Business Market
Business markets have:
1. Fewer Buyers
2. Close supplier-customer relationship
3. Professional purchasing
4. Many buying influences
5. Multiple sales calls
6. Derived and inelastic demand
