The concept of business-to-business is quite ubiquitous in todays business world. It pertains to the commercial transactions between businesses. The transactions between a manufacturer and a wholesaler or between a wholesaler and a retailer are instances of business-to-business (B2B) commerce. A typical supply chain is characterized by a large number of B2B transactions in comparison to any other type of commercial transaction in the same supply chain. Going by the example of an automobile manufacturer that makes multiple B2B transactions, it procures tires, glass for windshields and other bits and pieces for its vehicles. B2B has been evolving and currently is being used in a new context as well. Many businesses are now using it for communication and collaboration and are referred to as B2B communication.
Originally, the term business-to-business was used to describe the communications between enterprises so as to differentiate it from the communications between enterprises or businesses and consumers. In the current scenario, B2B is also used in marketing to describe products and services put into use by enterprises. B2B marketing strategies have assumed great significance because they are instrumental in its overall success. B2B branding, pricing, promotion, campaigning are some of the aspects of marketing strategies. Experts are of the view that B2B shares the largest part of all marketing while its market value far exceeds that of the consumer market.
According to the expert analysts, there are three factors which are driving the phenomenal growth of B2B marketing. The first is the revolution of technology which is constantly evolving thereby spawning newer products and services. Next is the entrepreneurial revolution. The companies are engaged in a cut-throat competition where the business adage is change or perish. Unexplored markets are being tapped aggressively while new uses of existing products are being found by way of innovation to maintain their competitive edge. The third revolution is taking place within B2B marketing itself. Traditional theories and assumptions are being challenged while conventional work processes are being replaced by new models and concepts. Building relationships with consumers a well as different forms of partnerships are the new defining mantra of marketing.
The impact of the internet on B2B marketing has been more than apparent. Internet is instrumental in presenting new opportunities to businesses while it improved customer service and retention. With its advent, new businesses which are of by-products by nature have emerged. If the glaring facts and statistics are what to go by, B2B is the next marketing phenomenon which is potent enough to change its dynamics for good.
Ravikant is an amateur writer primarily focusing on business related topics. Currently he is rendering his services to Web India Business an online B2B Directory.