What Is B2B In The Business ?
If you often read business publications or frequent professional forums online, you've likely come across the abbreviation "B2B."
What is B2B, exactly? It simply means “business to business,” which refers to any company focused on selling products or services to other businesses rather than to consumers.
What is a B2B company?
B2B companies are supportive enterprises that offer the things other businesses need to operate and grow. These include businesses like payroll processors or industrial suppliers. This is in contrast to business-to-consumer (B2C) models, which sell directly to individual customers, and consumer-to-business (C2B) models, in which an end user creates products or services for a business. B2B companies have an entirely different target audience: They offer the raw materials, finished parts, services or consultation that other businesses need to operate, grow and profit.
Examples of B2B companies
There are B2B companies in every industry, from manufacturing to retail. Wherever business is done, you can be sure a host of B2B suppliers and advisory firms are active. Every B2C company requires certain products, services and professional counsel, so every B2C company generates B2B activity.
One example of a traditional B2B market is in automobile manufacturing. Everyone knows some of the biggest consumer-facing brands, but in every model of car or truck they produce are dozens of other companies’ products. These include the tires, hoses, batteries and electronics that are essential for the final consumer product – the vehicle – to operate properly. The manufacturer purchases these products from its various suppliers and incorporates them into the final product. When you buy a car from one company, you’re purchasing parts that were created by dozens, if not hundreds, of other businesses from all around the world. Business-to-business sales are a vital part of every industry’s supply chain.
How to develop a marketing plan for a B2B company
Marketing and branding B2B products or services requires a unique approach. Unlike with B2C companies, the target audience isn’t a consumer at all, but another company. That means B2B marketers must speak directly to those in charge of the decision-making process. Driving sales means understanding another company’s business processes and developing a business-specific strategy with your sales team to turn potential customers into buyers.
Devising B2B marketing campaigns requires some careful planning, said Brent Walker, vice president and chief marketing officer at healthcare marketing firm C2B Solutions.
“B2B typically relies on its sales function and account management team to establish and strengthen customer-client relationships,” Walker said. “Marketing may include advertising in trade journals, having a presence at conventions and trade conferences, digital marketing – an online presence, SEO, email outreach – and other traditional awareness efforts.”
The key to B2B marketing is demonstrating value to a business’s bottom line. If your solution streamlines processes, focus on the efficiencies your potential customers could gain. If your services increase traffic to a website or boost conversion rates, highlight the potential for added revenue. In business, it all comes back to profitability: If you can make the case that your products or services will enhance the bottom line, landing the sale becomes much easier.
Digital B2B companies
The rise of B2B e-commerce solutions has redefined the relationship between businesses and suppliers. A product of the digital revolution, these businesses sell products directly to other companies using e-commerce platforms, as well as sharing data and updates about products or services. There are many types of B2B e-commerce companies, but three of the most common are web development, supply and procurement exchanges, and infomediaries.
Every business needs a website, but few business owners have the time or skill set to build an optimized site from scratch. Web development companies (and, more generally, digital marketers) are B2B services that handle the creation and maintenance of company websites, plus other digital advertising services like content creation and search engine optimization. These services are indispensable in the ever-expanding digital environment that dominates the modern business landscape. Though web development companies didn’t exist until a few decades ago, they’ve become essential partners for any business that wants to get off the ground.
Supply and procurement exchanges
Otherwise known as e-procurement sites, these companies serve a range of industries and often focus on a niche market. A company purchasing agent can shop for supplies from vendors, request proposals and even make bids for purchases at specific prices. These B2B websites enable the exchange of product supplies and procurement.
Specialized or vertical industry portals provide a subweb of information for a specific industry or vertical, such as healthcare, construction or education. These sites provide product listings, discussion groups and other features. Vertical portal sites have a broader purpose than procurement sites, though they may also support purchasing.