What is B2B Marketing? 

Business to business is a business model whereby business make transactions or engage in commerce with one another. Business to business, otherwise called B to B (B2B), describes a situation where a business engages in sales or products and services to other businesses. This relationship can be between a manufacturing company and a wholesaler or a wholesaler and a retailer. For instance, when a business supplies raw materials to produce another business, this type of relationship is business to business. Business to business differs from business-to-consumer (B2C) model which is commerce between a company and its customers.

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Understanding Business to Business (B2B)

Any form of supply chain is a business-to-business model because it entails businesses transacting with one another until the peculiar needs of each business are met. Manufacturing companies, wholesalers and retail business often engage in business-to-business transaction before their finished products get to the end user. Aside from the exchange of goods and services between businesses, information is also exchanged via business-to-business model. When employers and employees from different companies interact with one another, exchange information and pass knowledge, this is also a form of business-to-business practice. In many countries, business to business transactions occupy a major position in the country’s commerce.

B2B E-Commerce

Interactions, exchange of goods and services done between businesses using the internet or electronic channels are forms of business-to-business transactions. This form of transactions is regarded as B2B E-commerce. The internet provides numerous opportunities for businesses to thrive and do business with one another. Given the robust, productive, and profitable environment that the internet provides, many businesses leverage the internet to engage in transactions with other businesses. In the United States, B2B e-commerce contribute a significant percentage to the economy. By 2023 B2B e-commerce is expected to generate 17% of the economy as against the 12% it generated in 2018. There are many online platforms and supply exchange that allow companies to engage in B2B transactions.

B2B Examples

An example of B2B transaction is a trade arrangement where Company A which is a textile company supplies materials to Company B produces clothes for children and adults. Generally, construction companies and technology companies might be unable to survive without B2B transactions, this is because they depend on other businesses to supply them building materials, software for technology and others. There are also companies that offer services to other businesses or sell products to them, examples are housekeeping companies. Real life examples of business-to-business transactions is the relationship that Apple maintains with firms like Panasonic, Intel and companies that produce semiconductors for the production of Apple’s iPhone and some other electronic gadgets.

B2B Relationship Development

For business-to-business transactions to be successful, there is a need for adequate planning, relationship development and relationship management by participating businesses. Businesses need to maintain sustainable business relationship for B2B transactions to be effective and successful. Usually, the account management department of companies handle business to business relationships. The account management personnel ensures that relationships with other businesses are well nurtures, and the business also positions itself as a force to be reckoned with.