You must have read so many B2B Articles on the internet but, then, you still need to get a clear picture of this concept. You may want to know about the purpose, meaning and working of this concept in the field of business. Well, this concept can be understood in brief as a collaboration or business deal between two businesses where exchange of products and services are done for earning profit.
Origination of B2B marketing
The entire concept of B2B marketing has now become a separate branding concept and also a field of study in professional courses. This concept has developed with the increasing industrialization and channels of distribution.
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B2B marketing simply means Business to Business marketing under which a business deal with another business to earn profit. This commonly followed between two companies where one is supplying raw material and other is supplying resources to collect that raw material or between a wholesaler and a retailer.
Many B2B articles will talk about the same thing but in a different way, so one needs to go through them thoroughly and relate them to the real life examples to get a clear idea of this concept.
How does this B2B concept work?
This question can be answered well with an example wherein a factory produces products in huge quantity and these goods cannot be directly purchased by the consumer. So, in order to make them each the consumer, wholesalers come into the picture. Wholesaler purchase products in big quantity and then these products reach the ultimate customer.
The same concept is being followed between a wholesaler and retailer because the consumer purchases commodities from retail shops. The retailer can buy commodities in bulk and make them reach the ultimate consumer.
Advantages of B2B marketing
Makes a healthy relationship between two business entities and open new opportunities for both of them. The concept of B2B marketing has contributed a lot in strengthening the customer base of a company. It brings companies with common interests and objective to work together. It gives an opportunity to the companies to help other companies in a variety of ways. As there is involvement of high investments hence, the companies can save their expenses and make optimum utilization of their resources.
Disadvantages of B2B marketing
The cost of the product is increased due to a long distribution channel an ultimately the consumer has to pay for it. The quality of any product might suffer under B2B marketing because some final products are made after the assembly of many other products. Some companies fail to cope up with the B2B strategy because it is completely based upon a few clients who involve a huge investment so, it can be a loss at times.
It can be said that unlike the other marketing strategies, B2B is a different method of marketing and has now become the face of the industrial sector which might not be mentioned in all the B2B articles. A huge investment and long professional relationship are involved in its concept. From a business point of view, one can reap good benefits from B2B marketing which is not only beneficial for the future of the company but, will also open doors towards success. On the part of the company, they must try to maintain good quality of their products for a healthy relationship in future.