B2B Marketing: What Makes It Special?
As the world becomes more and more globalized, many company took the advantage of being international. How does the manufacturing products get to the customers hands? Business to Business(B2B) marketing has been play the important factor in this process. From the raw material to finish goods, each process needs B2B marketing to bring the value to consumers. When the manufacturer made the products, their goal is to sell more and spend less money to another difference company. They have specific contracts to put hold of the low prices and huge amount of the products need to be sold to the consumers. Each process needs die rent purchasing behavior in order to sell to the customers’ hands.
The image divides B2B purchases into four categories according to their value and the level of business risk associated with the purchase. Each of these categories gives rise to different purchasing behavior and different complexities.
- Low-risk, low-value purchases are the least distinct from consumer purchases. There is little financial or business risk involved on getting the decision wrong, meaning that relatively little thought goes into the decision.
- Low-risk, high-value items such as raw materials typically involve a mixture of technical and purchasing personnel. This complexity is necessary to ensure that price is minimized without impacting upon quality. Purchasing personnel would usually be the key decision makers on a transaction-by-transaction basis, under the general guidance of more technical employees, who would review suppliers periodically.
- Low-value, high-risk items such as office insurance would similarly involve a mixture of specialists and purchasers. As the ‘risk’ is in the product rather than the price, and as each transaction is likely to be unique, an expert would tend to be the key decision maker every time a purchase takes place.
- High-value, high-risk purchases are the most distinct from consumer purchases, with a large number of senior decision makers evaluating a large range of purchase criteria.
B2B marketing contains value and risk in purchasing behaviors. As the picture is explained the cause of purchasing behaviors are the purchasing personnel and the complexity. These factors make the B2B marketing special in compare of other marketing strategies. As I believe B2B is so different from B2C marketing is B2B needs to build up good relationships with other businesses to continue to have the business together. The good the relationship the lower risk the company has to continue the long distribution process. Once the foundation is settled, B2B marketing is more stable compare to other marketing strategies.