After Sales Service/Customer Service
Customers are the assets of every business. Sales professionals must try their level best to satisfy customers for them to come back again to their organization. What is After Sales Service? After sales service refers to various processes which make sure customers are satisfied with the products and services of the organization. The needs and […]
The Business Need for Corporate Social Responsibility
Corporate Social Responsibility or CSR makes for eminent business sense as well when one considers the knock-on effect that social and environmental responsibility brings to the businesses. For instance, corporations exist in a symbiotic relationship with their environments (the term environment refers to all the components of the external environment and not to ecological environment […]
Various Forms of Shareholders Ownership
The previous articles discussed how shareholders play an important role in promoting good corporate governance. This article looks at the patterns of shareholder ownership that are prevalent in organizations in the corporate world. To start with, any company whether it is private or public limited needs to have shareholders who contribute equity to the setting […]
Definition of International Retailing
Ever since International Retailing started getting recognition in the industry, several academicians as well as Industry experts have tried to come up with exact definition. The attempt to define International Retailing raised a legitimate question as to what exactly the retailers were internationalizing. Unless the correct fact was established, there could be no right definition. […]
Porters Five Forces Analysis of China Mobile
Introduction China Mobile operates in a monopoly like market in the domestic Chinese telecom sector and hence, the application of the five forces model reveals that it need not yet worry about the external environment, which is protected and heavily regulated. Having said that, as the succeeding discussion makes it clear, it cannot take its […]
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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