A Few Key Characteristics of the B2B Market

1. A Few Key Characteristics of the B2B Market

2. B2B or Business To Business marketing refers to trading of merchandise to companies for use in manufacture/production of goods, for use in business operations or for resale to other customers. • B2B marketing differs from B2C or Business To Consumer marketing on three major counts. • Lesser number of customers – The number of potential consumers for B2C can run into millions. The number of businesses on the other hand is far less. • Transactions are complex – The products and buying processes are complex. The products are bought through an elaborate tendering process and include a thorough evaluation of the technical specifications. The negotiation is often done with strong bargaining. • Derivative demand – A good slice of the business demand is derivative of consumer demand. For example, a greeting cards retailer’s demand from the wholesaler declines because of the public’s use of digital media to send greetings.

3. A few other characteristics of a B2B buyer • They are more judicious. • B2C consumers can often be less informed, disposed to whims, and thoughtless while buying a product. B2B buyers on the other hand are extremely sensible while making a purchase decision. One of the key reasons, perhaps, is that the buying process follows a strict protocol. • B2B environments have fewer need based segments. • B2B markets have much lower number of need-based segments than for consumer markets. A reason we can think of is that B2B markets have a smaller target audience. • The need based segment of the B2B market, however, is very distinctive. • It is quality focused – A B2B buyer can regard the final quality of the product to be of paramount importance and may even lower the margins to buy the right merchandise. • Partnership focused – A B2B Company seeks trust and reliability and considers its vendors as strategic partners.

4. Importance of relationships in the B2B segment • It is not uncommon for a B2B supplier to have customers that have been loyal for several years. • The customer base is far fewer than in B2C; as a result, it is easy to develop personal relationships and trust. • The direct result of this focus on relationships translates to higher expenditure on people and more modest expenses on other forms of promotion. • Trade shows rank high as a promotional tool for most B2B companies.

5. B2B buyers are long term buyers. • B2B companies prefer to work/trade with clients on a long term basis. • Long term customers allow businesses to demonstrate their full scope of expertise in delivering value to its clients. The B2B buying cycle is longer. • According to a recent survey, B2B buyers spend more time in researching solutions before making a purchase. • It is a fact that most companies have found Esources to be a wonderful resource to search for potential prospects for their products and services.

6. According to an Esources review, “Companies have found Esources to be a helpful site that helps in focusing on the target market with the right kind of information”. Thank you