Are you planning to enter the business field or do you read business publications on websites or forums? Then, you are more likely to come across the word ‘B2B’. Unfortunately, most people have no idea about the meaning of this abbreviation. Well, B2B means Business to business. As the name indicates, it refers to a company who sells their services or products to other businesses instead of consumers. To know more about this concept and its significance, refer to the valuable points given below.
What is a B2B Company?
Different businesses require various raw materials or resources for their operations and growth. B2B companies tend to offer those required resources to other companies or businesses. Industrial suppliers and payroll processors are the major businesses that often rely on the services of B2B companies. Furthermore, the concept and operations of B2B companies tend to contrast B2C and C2B models. The former is Business to Consumers method in which a company sells its products and services directly to the customers.
The latter is Consumer to Business method where the end-users tend to create a product or particular service for a business. However, B2B have no competition with these models since their targeted audiences are totally different. Some of the services offered by B2B companies include providing finished parts, raw materials, consultation, etc., with which other companies can operate, profit, and grow.
Examples of Few B2B Companies
Even though the abbreviation may sound alien, you are likely to find B2B companies in almost every field ranging from retail sales to manufacturing. As mentioned earlier, industrial suppliers and payroll processors are the main beneficiaries of B2B companies. Furthermore, every B2C company needs raw materials, finished products, professional counsel, etc., and often relies on a host of advisory firms and B2B suppliers for this. It is to be noted that the automobile manufacturing field is a perfect and traditional example of the B2B market.
You would have heard about many high-end automobile manufacturing companies. However, do you know that multiple products featured inside their vehicles are manufactured or produced by other companies? For instance, the elements such as batteries, tires, electronics and hoses that are inevitable for the operation of the final product are often manufactured by different companies rather than the automobile company itself. In fact, the vehicle manufacturer will purchase various products from different suppliers and incorporate them into their vehicles.
In short, when you are purchasing a car from your favorite company, you are buying automobile parts that are manufactured by a number of different manufacturers from around the world. Hence, the B2B model is a significant part of the industrial chain. If you are wondering about other real-world examples of B2B businesses, there are plenty and are more visible than you think. For instance, consider the Dropbox Company, which is a cloud-based document storage services that serves multiple individuals as well as businesses.
Another example is General Electric, which makes a wide range of consumer goods. However, they provide their products to other enterprises as well. Similarly, have you worked in a company in which the paychecks are stamped by ADP? Note that ADP is a B2B company that offers financial services and payrolls for other businesses. Xerox is another household name that almost every person would have heard about. This company provides print services and paper to other companies or businesses.
Developing the perfect marketing strategy for B2B companies
Unlike B2C and C2B models, the marketing and branding strategies for B2B companies require a totally different approach. After all, the target audience is another company, not a consumer. Needless to say, it’ll be more challenging to convince a company when compared to an individual. In this case, you will have to convince the other company that your services will yield them a higher return of investment.
If you own a B2B company, then your marketing manager will have to meet the decision making personnel of your potential audience and turn them into your buyer. When it comes to firms that do not offer immediate results, this can be a hard sell. For instance, consider a digital marketing company that specializes in social media management and content creation. In this case, you must be able to educate the opposite team regarding your services and their impact on their company profit.
For this, you will have to craft a reliable marketing strategy keeping the business processes and requirements or necessities of the other company in mind. Without any doubts, it is better to hire a skilled sales team for this purpose. The essence here is that the prime thing to B2B marketing is the way your sales team demonstrates it to the target company.
Digital B2B companies
The relationship between the suppliers and businesses has been redefined with the introduction of the B2B models. Most of these companies are serving other companies through online platforms. Even though there are numerous examples for digital B2B companies such as infomediaries, supply and procurement exchanges, and web development which are the most popular ones. Below is some of the detailed information regarding each of these options.
Web development companies
Nowadays, every business demands a credible and reliable website to reach out to maximum customers as possible. However, only a few business owners will be skilled enough to build an appropriate site for their business that reflects their vision, services, and products. In such cases, they’re likely to depend on the best web development companies out there.
Note that through B2B Service, the business owners will be able to nail their website creation and maintenance. These companies will also look after other digital services such as search engine optimization and content creation that are indispensable elements in the present digital world.
Supply and procurement exchanges
Also called as e-procurement sites, these B2B companies serve a wide range of businesses out there and focus mainly on a niche market. Note that procurement sites enable the exchange of product supplies. These portals provide information regarding specific industries such as healthcare, education, and construction, etc. You can also find discussion groups, product listings, and other features of the particular field on this website.
You may find many brokering sites as well in this case that acts as an intermediate between the suppliers and potential service customers. For instance, if you run a construction company and would like to lease equipment for your business operations, a brokering site can help you find the right product dealer or manufacturer.
Infomediaries
As the name indicates, these are the information sites that provide information about particular fields, companies, and their employees. In simple words, an infomediary works as an intermediary between those who want particular details and those who supply those details. Such B2B companies are often considered for trade and industry-standard organization portals. Furthermore, there are two types of infomediaries; one acts as a neutral entity and offers unbiased data to the consumers.
Usually, consumers check such sites before they make any purchasing decisions. Another example of an infomediary is the person that collects personal information from the buyers of particular products and uses that information for their product marketing. They even offer commission to the consumers at times. Plus, this type of infomediary is not necessarily web-based.
