Monday, January 2, 2017

Business to Business

Definition:


            Business to business refers to business that is conducted between companies, rather than between a company and individual consumers. Business to business stands in contact to business to consumer and business to government transactions.

                                                         
                                                                           "Do not miss a trick"

Business to Business Relationship Development:


            Business to business transactions require planning to be successful. Such transactions rely on a company's account management personnel to establish business client relationships. Business to business relationship also must be nurtured, typically through professional interactions prior to sales, for successful transactions to take place. Traditional marketing practices also help business connect with business clients. Trade publications aid in this effort, offering businesses opportunities to advertise in print and online. A business's presence at conferences and trade shows also builds awareness of the products and services it provides to other business.

Comparison with Business to Consumer:


            In most cases, the overall volume of B2C transactions is much higher than the volume of B2C transactions. The primary reason for this is that in a typical supply chain there will be many B2B transactions involving subcomponents or raw materials, and only one B2C transaction, specifically sale of the finished product to the end customer.


Business to Business E-Commerce:


            The internet provides a robust environment in which businesses can find out about products and services and lay the groundwork for future business to business transactions. Company websites allow interested parties to learn about a business's products and services and initiate contact. Online product and supply exchange websites allow businesses to search for products and services and initiate procurement through e-procurement interfaces. Specialised online directories providing information about particular industries, companies and the products and services they provide also facilitate business to business transactions.

How Business to Business selling is Different:


Selling to a business is different from selling to an individual consumer. Key sales and marketing differences for business to business transactions include:
  • Selling sometimes requires participating in a bidding process by responding to a purchaser's request for proposals. On the business to consumer side, this compares to asking various auto dealers to provide their best offer on a specific make and model.
  • The decision making process on a purchase can take days, weeks, or months, depending on how the purchasing company works and the size and nature of the order.
  • Purchasing decisions are often made by committees, so each members needs to be educated and "sold."
  • The dollar value of goods or services sold is much higher than on the consumer or retail level, so the buyer needs to take steps to minimise risk. That sometimes involves requesting a product prototype or customisation.