May 13th, 2010 by admin

Commercial relationships between organizations are referred to as business to business marketing. The shorter name is B2B marketing and it has different peculiarities from regular business to consumer marketing by the means of distribution, usually labeled as direct. Experts discuss the two variants in parallel since there are both similarities and distinctions between them.

Referring to consumer marketing, the population gets access to products and services through retailers in a very simple process. With business to business marketing, transactions are not closed without negotiations between seller and buyer.

In terms of similarities, business to consumer marketing and business to business marketing rely on identical mechanisms that correspond to the guidelines of traditional marketing. Yet, things are a lot more complex than you may suspect beyond these apparent similarities. The following features correspond to both B2C and B2B marketing.

-They define a target market and make efforts to adjust the product or service to the consumers’ needs.
-Businesses have to advertise regardless of their end clients.
-The target market should have a good idea about the value of the products or services.
-The prices and the strength of the product/service must meet the general market tendencies.

The status of the seller is usually easy to define in business to business marketing, although we can’t say the same thing about the buyer. The so-called businesses that correspond to the other category here belong to separate classes of clients, and each has to be approached differently. There are companies that consume services and products, resellers, government agencies and institutions.

The businesses that work as consumers depend on equipment and services for their activities. Then, business to business marketing for institutions involves collaboration with nursing homes, hospitals, churches, schools and charity organizations. The government with all the corresponding agencies is the biggest consumer of all, if we think of local governments too. And finally, distributors, wholesalers and resellers work both with business to business market, as buyers, and with business to consumer, as sellers.

Larger sums of money enter the circuit with business to business marketing because the partners involved in the transactions are companies. Moreover, the volume of the merchandise is also different, together with the promotional means, the discounts, the pricing structures and lots of others. Therefore, beyond common grounds for B2B marketing and B2C marketing, each approach has its specificity and separate operational mode.

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