B2B business or in other words business to business is known by other names such as business marketing or industrial marketing. In this type of business, transactions are made between companies and organizations. This means that companies and organizations offer their products and services to other companies and organizations. In fact, in this model, we are not a party to a real person under the title of customer.
In this model, we encounter to all the operations of a normal transaction. Items like exchanging information, data, ordering, buying and selling, etc. The goal in this model is that producers of raw materials, producers of various goods and distributors can communicate with each other without intermediaries. Every company needs some raw materials to produce its products. The same products may also be considered raw materials for other services and products. This issue creates a cycle and chain of buying and selling between different companies and organizations.
Difference Between B2B and B2C
The differences between these two types of marketing can be found in areas such as buying time, number of stakeholders, complexity of offers and buying process. B2C refers to the interaction between the company and the customer. The transaction process in this area is much shorter than B2B marketing. Because the purchase in this case is on a case-by-case basis, but the purchase in business-to-business marketing is wholesale and may take several months.
The Effectiveness of Social Networks in the B2B Business Model
In this regard, we are faced with two groups of products. Products that reach the final consumer and products that are used to supply to the secondary consumer. The method of using social networks is different in each of these two cases.
1. Social Networks for the End Consumer
In this regard, it is easier to work with social networks. We can easily operate and advertise in all social networks. In fact, in this method, we do not face the limitation of the audience in a special and serious way.
2. Social Networks for Affiliate Marketing
In this model, we are faced with a primary buyer and a secondary buyer. In other words, in this method, we are faced with limitations to communicate with the audience and carry out advertisements. Because it will not be possible for us to do retail transactions. For marketing through social networks in this way, it will be suitable to find potential customers and make advertisements only for them. In some social networks, we can even limit people other than the main audience so that it is not possible for them to see advertisements.
Advantages of B2B Marketing and Business
1. More Convenience
In this marketing, sales are done online with minimum time, energy and cost. Advertisements, product display and the order registration process are carried out in bulk without special restrictions and easily.
2. More Profitability
Sales in industrial marketing are usually done in bulk so that buyers can have the necessary stock for themselves. More orders will lead to higher potential sales and more cash earnings. At the same time, by using the market potential in the field of commercial software, consulting services and specialized machines, it can provide companies with a bigger market. Targeting these industries leads to higher profits.
3. More Security
Due to the conclusion of B2B sales contracts between businesses, sellers feel comfortable about fulfilling their commitments and there is less concern about not fulfilling promises. In addition, such contracts are usually digitally traceable and monitored.
Disadvantages of B2B Marketing and Business
1. More Complex Setup
In order to start operating as a wholesaler, it is necessary to know how and what type of customers to attract. Attracting customers in this case should be specialized and doing it requires thorough research for advertising in potential businesses and setting up a dedicated sales system.
2. Sales Restrictions
While high sales can be achieved in this way, companies lose potential sales to their customers. Due to the limitation of commercial buyers and the urgent need for negotiation and its capabilities, it creates limitations in the field of sales and profit.
3. To Grow Up
In a given period of time, there are many companies offering similar products and services. Because of the competition between these companies, sellers often have to look for ways to lower prices and find ways to attract the attention of companies.
Up To Sum
B2B marketing is necessary for companies that work for other companies and organizations. Even today, due to the correlation between the producers of different products regarding the supply of raw materials, it will be necessary to learn the principles of this marketing for success.