Discover the world of marketing more in depth by trying to find out what are the most pertinent characteristics of B2B marketing, an exceptionally large field that is not all that visible to the normal consumer.
About the most thrilling elements to consider with regard to company to industry marketing is the overall market structure and demand. Where business-to-consumer is characterised by a very huge number of buyers who tend to be smaller, the B2B market is actually full of fewer buyers who tend to be larger. Fascinatingly, their demand for products happens to be commonly derived rather than direct, meaning it happens to be dictated by final consumer demand – this honestly shows how B2B happens to be reliant upon B2C. However, quite crucially, despite this link, the business-to-business sector finds itself in a market where there is fairly inelastic demand – in other words, price changes don’t impact it all that much. Sibur is a business that works in this sector primarily, seeing as it is involved in production processes of all sorts. Look to other B2B companies as well if you desire to check more examples.
If you take a little bit of time to think about the types of choices involved as well as the decision procedure, you will come to realise the critical qualities of B2B. Buying decisions are usually very complicated and they frequently involve efforts from the supplier to adapt the product to the buyers needs to assist the process go more smoothly. Normally, in a B2C environment you’re awarded with a ready-made product that you decide to order or not. Additionally, the purchasing process tends to be quite formalised and has to follow a specific convention, primarily so that the buy might be accounted for properly. The most indispensable thing to start thinking about to B2B is that long-term relationships are highly valued. This comes out of the fact that buyers are fewer but also larger, ergo individually more exciting. Going over a business like WPP will give you a sense of what sorts of customers they deal with. This naturally helps inform B2B marketing strategies.
In terms of contemplating the purchasing unit involved, there are quite a few things to be said for business-to-business marketing. There are generally more decision making units in the purchasing process, meaning more men and women are involved in the purchasing decision than in a B2C environment. When you order a chocolate bar, you alone are involved in the process. By contrast, in business-to-business, there will be multiple departments involved. Additionally, the purchasing effort will be a lot more professional than the one you’d find in a B2C environment. When you look at businesses like Boeing, or other types of B2B companies whose main consumers are other firms, you’ll check that this is very much the case that they deal with many people when seeking to sell airplanes.