Advantages of E-Commerce
We are living in the Information Age. Internet has changed our lives and these changes are irreversible. Slowly every home is being taken over by Internet. People have switched over to paying all their bills online, banking online and even shopping online. Internet is being used by people for various purposes. The more people get […]
Practicing Socially Responsible Practices Internally
In previous articles, we have seen how companies need to adopt CSR as a business need and imperative. The role of media and advocacy groups was discussed as well. In this article, we turn to a crucial but often neglected aspect of a company’s social responsibility i.e. the need to be socially conscious with its […]
Mintzbergs Five Configurations of Strategic Management
The famous management expert, Henry Mintzberg, proposed a five configurations approach to strategic management wherein any organization can be broken down into five core elements or parts. The interactions between these parts determine the strategy of the organization. The five parts according to Mintzberg are: The Operating Core which consists of those doing the basic […]
Corporate Reputation Management in the Post Truth Era and the Age of Fake News
What is Fake News and What is Post Truth We live in times that have been called the Era of Post Truth and the Age of Fake News where facts are facts only in the sense that they are believed by individuals alone and it does not matter whether such facts are made up, debunked […]
Service Industry at Cross Roads
No one would have ever imagined fifty years ago that the service sector would become a major contributor to the economy world over. Surprising but true, that in America as well as in India or in UK, service industry has grown beyond our imagination and continues to grow. Globalization and the advancement of technology has […]
Let us first understand the meaning of Business.
Any organization or firm actively involved in the transaction of goods and services to the consumers/end users is known as business.
As the name suggests “Business to Business Marketing” (B2B Marketing) refers to the exchange of either goods or services or both between two businesses (organization/firm). “Business to business marketing” also known as industrial marketing involves the sale of goods and services by one organization to the other which in turn either further sells them to the consumers or use them to support their own system.
In layman’s language business to business marketing is nothing but the transaction of goods and services between businesses/organizations/firms.
Transaction between a manufacturer and a wholesaler often comes under Business to Business Marketing.
Communication is a strong medium which not only connects organization with the end-users but also employees of one organization with the employees of other organization/firm. Social media, Internet and so on connect one organization with another organization and come under various ways of Business to Business Communication.
Any communication done between employees of two organizations is referred as Business to Business Communication.
An organization A sells Bulk SMS service to organization B and C.Organization A sells its services only to other organizations and not directly to consumers. An example of Business to Business Communication.
Employees in Organization A use various modes of communication to interact with Organization B and C.Communication can be through emails, social networking sites, presentations or mere verbal interaction. Organization B and C can use the services of Organization A either to support their own operations or directly sell to the end users/consumers.
Let us go back to the previous example.
Organization B and C would not need Organization A’s service if there is no demand among end-users or consumers. In simpler words an increase in demand of a particular product among consumers creates demand in business Market.
Let us understand the same with the help of an example:
Organization P sells furniture (desks, workstation, cabinets) to various offices in city A. Organization P does not deal with end users.Orgnization P would not survive if new offices do not open up in City A. New offices would only open up when more and more people are educated and there would be an underlying demand of consumers to open up new offices for them to earn their bread and butter. Need in consumer market is responsible for triggering the demand in business market. No business can survive in isolation. Each and every business is interlinked.
According to Hutt and Speh, business marketing constitutes the largest market. Growth in business marketing hints a growth in economy as well. Organization D would purchase more and more electronic appliances like refrigerator, television, mobile handsets from Organization F - a case of Business to business marketing only if the purchasing power of consumer increases. Consumers would be able to spend a substantial part of their income on electronic appliances/luxury goods only when their salaries increase.
Business to Business marketing helps in satisfying the needs/demands of other organizations, though primarily the need arises from the consumers/end users only.
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