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Concept Version 6
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B2B Channels

B2B channels are often the same as B2C channels, but typically there is a greater emphasis on personal touch.

Learning Objective

  • Distinguish between business-to-business (B2B) and business-to-consumer (B2C)  transactions


Key Points

    • Business-to-Business (B2B) marketing describes commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer.
    • B2B transactions often involve a large sum of money, and so are often a longer process than a simple business-to-consumer transaction.
    • Trade shows are popular ways for companies to engage each other in doing business and are an important part of B2B selling.

Terms

  • logistics

    The process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from their point of origin to the point of consumption for the purpose of satisfying customer requirements.

  • trade show

    An exhibition organized so that companies in a specific industry can showcase and demonstrate their latest products and services, study activities of rivals and examine recent market trends and opportunities.

  • e-commerce

    Commercial activity conducted via the Internet.


Full Text

Business to Business (B2B) marketing refers to a market where other businesses, not end consumers, are the purchasers of the goods and services.

B2B describes commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer. Usually B2B transactions involve purchasing items that will make up the final product. For example, a chair manufacturer may buy steel for the frame from one company, wood from another, and the fabric from another. All these are considered business to business transactions. B2B marketing is usually quite different from other forms of marketing, particularly business to consumer (B2C)

Business-to-Business Channels

Like Business-to-consumer marketing, business to business also employs different channels, such as e-commerce or physical stores. However, due to the substantial differences in how B2B marketing works compared to B2C, there are additional channels. Many business-to-business transactions involve large sums of money, because generally the business will buy in large quantities. Therefore, it often makes sense to involve a representative from the selling company in developing, cultivating, and maintaining relationships that lead to sales. This person can help the purchaser plan for, set up, and use the B2B product.

Another channel, not as commonly used in business-to-consumer transactions, is that of trade shows . A trade show provides a platform for many different companies in the same general industry to display their products for other businesses to buy. A business will often purchase products at a trade show for use in their own products, making trade shows an important component of Business-to-Business transactions.

Trade Show

Trade shows are a common way to conduct B2B transactions.

Business-to-Business E-Commerce

One of the major differences between business-to-business (B2B) transactions and business-to-consumer (B2C) transactions is the type of online (e-commerce) interaction. Typically, a B2C customer will purchase a product or service and, once the transaction has been complete, will have limited continued interaction with the company with regards to that product.

However, in a B2B transaction, the purchaser often expects an ongoing relationship with the seller. This is also reflective of the types of products and services offered in a B2B e-commerce setting, which includes logistics, outsourcing, solutions software, and content management software.

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