What is Business to Business Marketing?

Have you ever wondered how Fortune 500 companies provide new desktop computers to 2,000 employees? These companies will never send someone to a retail store for an order that big, yet these transactions are crucial to the success of the business’ future.

B2B marketing or Business-to-business marketing essentially incorporates the sale of one organisation’s service or product to another organisation. The techniques of B2B marketing greatly depends on the same basic consumer marketing principles, but they are executed in a very different way. While consumers select products based on status, popularity, and price, B2B businesses make their decisions on profit and price alone.

Creating new relationships through various social media channels is a hot topic in the world of B2B marketing. Social media channels have opened the doors for communication between organisations. Recent studies have found that businesses are fonder of buying from companies that they can track on social media. B2B companies that are tech-savvy continuously find ways to utilise social media in an innovative way. For instance, Cisco Systems Incorporated, a world-leading networking systems seller, released a campaign to introduce a new router and only used social media advertising. The release was classified as the top 5 in the history of the company, shaving off over $100,000 in launch expenses.

Who Utilizes B2B Marketing?

B2B marketing, at its core, involves building important relationships to ensure lasting customers. This is an extremely important goal for any organisation, whether it’s a small family-owned business or a mega retail corporation. The B2B market is considered the biggest of all and manages to exceed the consumer market when it comes to dollar value. For instance, companies like IBM and GE spend over $60 million daily on good to support the organisation’s operation.

B2B marketing is primarily employed by organisations that create or develop products that most consumers have to use for, including steel. But it can also be used by businesses selling services and products bought by consumers and other organisations alike. For instance, Sprint (a popular phone seller) offers data, voice, and wireless services to both consumers and businesses. In fact, the health-care purchasing network known as VHA, recently signed a 3-year contract, valued over $1.2 billion with the popular phone seller. Sprint is currently a nationwide leader when it comes to consumer marketing and B2B marketing.

What kind of customers are marketed when it comes to B2B marketing?

The B2B marketers usually focus on four different categories:
• Organizations that utilise their products, such as construction businesses who will buy sheets of steel that will be used on buildings.
• Institutions like schools and hospitals
• Government agencies, who are considered the biggest consumer and target for B2B marketing.
• Companies that manage to resell the goods and turn around to consumers, such as wholesalers and brokers.

A successful B2B marketer can place their service or product into the right hands by simply positioning their product or service in an exciting and professional manner, understanding the needs of the consumer, and proposing the correct solution to incorporate both.