What is B2B marketing?
It is the process of selecting, developing and managing relationships for the advantage of both customer and supplier with their respective skills, resources, technologies, strategies and objectives. lt is sufficient to note that almost two thirds of global trade outputs are B2b transactions. The B2b business involves companies doing business with other companies. It requires you to have strong relationship building skills.
B2b marketers are often interested in measuring the fluctuation in prices. For most business products, the demands tend to be inelastic, meaning that the price of the product can be changed and yet have no impact on the demand for the product.
First of all, the unique attributes of B2b marketing involve complex sales process and solutions for customers. For example, Airbus production involves a complex sales process with many suppliers contributing to that solution.
Secondly, the number of people involved in the purchase decision is more complex. For instance, you have to identify who the decision makers are and their influence in the purchase cycle.
Thirdly, B2b marketing has high reliance on sales and the sales cycle can be long. As this process entails by passing frequent bureaucratic barriers by consistently communicating with those involved in the sales chain.
Fourthly, B2b marketing requires marketing to develop demand generation programs that in return develop quality elites for sales to convert.
Concerning the strategy of how to conduct business, a B2b marketing agent has to consider the surrounding of the business and the kind of business decisions the company has to make.
The scope of the clientele is paramount in this undertaking. More money is spent in B2b marketing as opposed to consumer marketing. This is important to every kind of business regardless of whether they are on the receiving end of the marketing strategy, whether they are doing the marketing, whether the suppliers of this business are their competitors and are actively involved in the business. This surely does affect the dynamics of this type of business.
While laying the strategic plan to conduct B2b marketing, the following factors should be considered:
First, there are multiple buyers. Therefore, there is a lot of input into the decision making process, as much as the ultimate decisions are made by the respective company executives. Plans must be laid out so that encompasses the interests of these executives and their plans to grow their company, this is by appealing to the interests of their organization.
Secondly, you should consider the number of customers. This business model has a much smaller number of clients targeted than in a consumer market, though this should not be taken for granted as these few customers compensate what they lack in numbers with the amount of products that they purchase. The volume being traded in the B2b market model is large which ultimately translates to the involvement of large financial input.
Geographic concentration more or less, is another factor that should be taken into consideration. Companies that deal in the same industry tend to be strategically located within the vicinity of each other, which makes inter -trade ventures simplified to say the least.
The sales model in B2b marketing moreover tends to be personalized. When advertising a product, the company doing the trade seeks to develop a more intricate relationship that is tailor made to suit the company that it intends to trade with it. It is a much more collaborative and cooperative venture especially between the sales people and the client. That personal selling strategy is vital in the B2b trade.
In B2b marketing, the types of buyers do determine the plans and ideas that you incorporate in order to achieve profitability.
The first is the producer market. Emphasis should be made on whether the buyer takes your product to fulfill their obligation in the production of their end product. Thus, the price is irrelevant to them because they NEED your product. What excites them is your ability to keep quality and dependability.
The other category is the reseller group. They are divided into the wholesalers and the retailers. For wholesalers, quantity is paramount in their inventory and as such, dependability is a factor they really put ahead.
As for retailers, the services are important, they admire flexibility and thus want you to change when their demands change. Quality of service is a key.
The other category in the B2b marketing venture is the Organization markets. These include governmental organizations and non-profit organizations such as children orphanages. Concerning the government, you are dealing with an entity which dictates the terms and conditions within which the business will be done. Regulations have to be followed. You have to get your company into an approved list of bidders, which is a rigorous process due to the scrutiny involved before acceptance to trade. Once you surmount these challenges, the rewards are ultimately worth the processes. For the non- profit entities, their focal point is pricing as they happen to deal with stringent budgets.
Buying situations are finally an important dynamic to focus on in B2b Marketing. There is, first, straight re -buys. This is when a company is re -buying a product it bought or ordered before. Minimal changes such as quantity or detail are expected. Modified re -buys are those whereby a product has been bought before but significant changes are made or whereby those products have not been bought in a long time. This requires guidance by the sales professional to guide the buyer in matters pertaining the new versions or any major modifications on the product once bought.
In your B2b marketing strategy, make sure to plan tight, as failing to plan is surely a great way of Planning to fail.