Marketing to businesses (B2B) is, in simple terms, the practice of selling products and services to companies to maintain their operations. This contrasts with Business-to-Consumer marketing (B2C), which focuses more on the consumer.
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Manufacturers, government, resellers, and non-profit organizations are all popular business-to-business market segments. They are focused on selling their products and services to other businesses.
The type of products and services sold, and the target enterprises are two of the key ways to distinguish between business-to-business and business-to-consumer marketing. The former promotes products that help other businesses operate, such as spare parts and equipment.
The process of a business-to-business purchase is a different process than B2C marketing. B2B marketing is more logical than emotional. Marketing in B2B is more expensive than B2C. It is crucial to focus on the business logic behind the purchase of the product or service when marketing to other businesses.
Organizations will be motivated to purchase the product or service based on its usefulness in achieving their organizational goals. Information and knowledge are the two key factors in the B2B market.
Although business-to-business marketing requires more research than consumer marketing, it still involves significant amounts of research. The research in business markets is different from consumer markets because of four factors:
- The relative complexity of the decision-making unit in B2B markets
- Comparative complexities in product/services and application for B2B markets
- B2B customers are smaller than B2C, but they have greater consumption of services and products.
- The importance of personal relationships in B2B markets
Many businesses have also established online operations for B2B marketing. Businesses involved in export and import have found the internet extremely useful in running their businesses.