What Is Business to business marketing

Business-to-business marketing is about identifying the main types of customers that make up the business market and the purchasing power they represent. For the above, it is important to recognize the relationships between the buyer and the seller, identifying the factors that influence the purchasing decisions of organizations.

The business market includes all organizations that acquire goods and services to incorporate them into other goods, for their consumption, for their use or for resale. Commercial companies are the sector of companies made up of manufacturers, builders, service companies, transport companies, groups of professionals and distributors of goods and services.


Every company must acquire the materials, supplies, equipment and services necessary to carry out its activities successfully. In professional and group purchasing, procurement is typically managed by a person serving as the purchasing manager or procurement director.


Electronic procurement allows employees to purchase, individually, online, but with the organization or company maintaining control of the purchasing process. In addition, we find that purchasing managers today are using the Internet to conduct reverse auctions online, that is, a buyer requesting bids from several suppliers in advance.


The demand for products for the business market is not equal to the demand for products for the consumer market, since the former is derived and fluctuates, which means that the demand for industrial products comes from the demand for final consumer products. and, therefore, we must be aware of changes in the preferences of the families that make up consumer markets.


Governments as clients for their part, constitute the sector of the business market that is made up of the federal, state and municipal governments that purchase goods and services. General strategies for your acquisitions consist of either formally announcing them or through previously negotiated contracts.

The E-Government (online government) is responsible for transferring traditional government activities to an Internet environment, with the purpose of improving the possibility of access to the public sector and service to customers.


Institutions as clients represent the business market sector made up of organizations that offer health services, colleges and universities, libraries, foundations, art galleries and clinics that purchase goods and services. Institutional purchases that are made include professionals, such as doctors, professors, researchers, and others. An important factor is group purchases that allow institutions to obtain lower prices, better quality, lower administration costs and greater competition.


International business-to-business markets offer us a complete picture, where there is a demand for many industrial goods and services from different countries that is growing more and more and needs marketing strategies focused on culture, product uses and procurement procedures. of international buyers.


Business-to-business classification systems refer to the codes that identify the primary products that factories or commercial establishments have. The North American Industry Classification System (NAICS) is a relevant instrument used to identify new customers and to target profitable segments of purchasing companies.


One of the ways to manage customer relationships is through business software applications that summarize customer information from all contacts or touchpoints in the business, known as CRM. These applications have the priorities of: Attracting the right customers, preparing the right value proposition, instituting the best processes, motivating employees, and learning how to retain customers.


Supply chain management is a technique that is useful to us when linking the operations of a manufacturer with those of all its strategic suppliers, key intermediaries and customers, in order to improve the effectiveness and efficiency in the exchange processes.


Just-in-time systems refer to the delivery of parts and materials, without defects, to the production process just when they are needed, which greatly influences the success of many industrial companies.


The purchasing process in organizations goes through several stages and each of them results in a decision. The stages are: Problem recognition, need overview, product specifications, supplier search, procurement and proposal analysis, supplier selection, order ruin selection, and performance review.


During the process, managers make small or big decisions, which ultimately translate into the provider they ultimately choose. The selection of a supplier and evolution of its performance can lead the procurement manager to proceed, modify or cancel a contract. The marketer must ensure that the needs of the purchasing organization are satisfied in order to retain a new customer.


There are different types of buying situations:

-Situation of purchase as a new task.- It results from a deep search for information and a long decision-making process.

-Direct purchase.- Means routinely placing orders with the same supplier for a product that you have already purchased before.

-Re-acquisition modified.- It refers to the people who make the decisions in the organization thinking that they can obtain many benefits if they reevaluate an alternative.


When evaluating potential suppliers, the total cost of ownership must be considered, which includes factors such as the quality of a product throughout its life cycle, and the analysis of value from the point of view of its purpose, relative merit and cost to find ways to improve products and / or lower costs.


Buyers formally rate the performance of suppliers for the purpose of evaluating the quality of past decisions and using them as a guide in choosing selling companies in the future.


The forces of the environment lie mainly in observing the panorama of the national and world economy, the rhythm of technological change and world trade relations, so that organizations can make the right decisions when buying.


The strengths of the organization indicate the goals, objectives, strategies and position of the organization regarding purchases, so it is essential to have a deep understanding of the opportunities and threats faced by the client, the strategic role of acquisitions and their positioning. organizational in order to function effectively.


The group’s forces constitute the purchasing center, they involve commercial companies, educational institutions and governments, among others, in decision-making. Organizations have different functions and relative influence on the participants in the purchase decision.


The strengths of the individual include the personal preferences that go hand in hand with the job function, past experience and purchase motivations of each of the participants in the decision.


In conclusion, I think that in business-to-business marketing the most important thing is to identify the distinctive characteristics of the business market, investigating the way in which organizations make their purchasing decisions, to obtain a profile of leading companies in business marketing and be able to compete in the market. I found all the factors, situations and stages to consider when making decisions and analyzing proposals very interesting, because these not only involve institutions or companies as such, but also purchasing managers, engineers, users and other members. from organizations that you hadn’t actually considered before.


by Abdullah Sam
I’m a teacher, researcher and writer. I write about study subjects to improve the learning of college and university students. I write top Quality study notes Mostly, Tech, Games, Education, And Solutions/Tips and Tricks. I am a person who helps students to acquire knowledge, competence or virtue.

Leave a Comment