B2B (Business to Business) is defined as a model wherein one entity collaborates with another for its business sustainability and functioning. B2B is no longer a luxury but an identified necessity in the rapidly changing business scenario.
Definition by example: What is B2B in the Indian scenario. To give an example for small businesses, an apparel manufacturing unit may be able to produce garments but it cannot sell it directly to the consumers. This is where the concept of B2B pitches in. The manufacturing unit can sell its produce to a retail unit. Another option today is to sell it to a retail outlet online.
Yet, another example can be a medical devices industry. The industry manufactures devices that can reach patients and impact lives. In this case a firm which can handle the sale and marketing of the medical devices can co-ordinate with the manufacturer and hospitals or clinics. In the service industry, a Human Resources consulting firm can function as a recruitment partner to larger organization and can have an extensive talent pool where people can hire from.
How do B2B companies work: Marketing forms a key aspect of any business. The kind of aggressive marketing approach most companies adapt is inclusive of social media outreach as well. But, then for B2B companies the target audience is another company. This is where things become a tad bit difficult. B2B marketing is not targeted at an individual customer, so short term benefits such as relatively inexpensive and competitive pricing might not help. A B2C (Business to consumer) model is slightly different from the B2B model and the complexity is more in B2B.
When an organization collaborates they look for a very specialized skill set and cater to a particular market. The key here might be to influence another organization’s decision making panel. What another organization might be interested at is the ROI of the product or service, the long term association risks and benefits and the kind of revenue they can look forward to from this partnership.
The key aspect here being that both companies should have a win- win situation and benefit from the collaboration. Approach differently: A digital media company which is looking for a B2B might have a different approach that of
a medical devices company which is looking for a sales partnership. Also, in case of a HR Consulting firm the approach to partner with a potential client organization will be significantly different.
A word of caution here is that since this business model involves two organizations, it is advisable to look for a long term partnership and collaboration. This will certainly add more value in the long run. Also, it is advisable to be well
prepared with the kind or product or service that the firm is selling. This will give the prospective buyer organization to be in a shape to take decisions. B2B model of doing business is rapidly shaping the marketplace and is giving way to a whole new way to strategize.
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Greetings! Very helpful advice in this particular post! Its the little changes which will make the most important changes. Many thanks for sharing!
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