The term “business to business” is usually abbreviated as b2b.
B2b means interaction between companies, business circulation of goods and services, where the consumer is not an ordinary client, but another businessman or business audience. Therefore, b2b sales have a number of their specific features from the consumer market.
What is the difference between b2b sales and b2c sales
Simplified, it is considered that b2b is wholesale deliveries, and b2c is retail. B2b market sales and b2c sales are available to many companies at the same time. Let’s explain with an example. There is a certain base of building materials, where building materials are purchased by large construction companies, i.e. there are b2b sales, also purchases are made by individuals to renovate an apartment, b2c sales are carried out. The base, acting as a supplier on the wholesale market, can make a discount to its b2b partners from retail prices, because b2b sales are corporate, larger than retail.
Variety of b2b sales
The concept of b2b sales significantly exceeds the market segment responsible for wholesale deliveries. Companies engaged in b2b sales mean:
- raw material suppliers;
- suppliers of semi-finished products;
- suppliers of machine tools and other complex business equipment;
- companies providing business support services;
- electronic commerce, etc.
Companies that provide support services to businesses mean a large group of organizations working in the field of:
- legal services;
- advertising;
- accounting services;
- marketing consulting;
- equipment leasing, etc.
Thus, we can say about b2b sales: this is the sale of a variety of raw materials, goods and related services for the purpose of resale or for professional use.
The value of b2b sales for business
The goals that companies operating in the b2b market operate on are to increase profits. Profit must inevitably increase after purchasing a b2b product – a product is purchased for the opportunity to earn more. Such a product can be, for example, more efficient equipment or marketing research that opens up new markets for products. This approach differs from the goals of consumers, for whom the main thing is the properties and characteristics of the product purchased for personal use.
This causes a difference in the decision to purchase a particular product. The consumer is exposed to the advertising of the product, its brand, its own views on the product, the convenience of the acquisition process and further use. At the same time, a corporate buyer, when making a purchase decision, is guided solely by the principle of deriving benefits, the growth of subsequent income. Therefore, in the b2b market, the main condition for making sales is personal contact with the buyer, presentations, exhibitions, etc.
