B2B is the term used to refer to corporate sales. B2B is literally translated from English as "business for business". B2B refers to a separate market segment in which goods and services are sold by the company to other legal entities for further use in their business.
Instructions
Step 1
The term B2B began to be used in the Russian economy relatively recently; it is used to describe the business model of relationships between commercial enterprises. A classic example of services in the B2B segment is consulting or audit. Simultaneously with the term B2B, the concept of B2C came into use. This term was introduced to refer to the commercial relationship between organizations and private consumers (individuals). In the B2C segment, an individual buyer purchases a product to satisfy his need. Some companies provide services both in the B2B and B2C markets.
Step 2
Sales in the B2B segment have their own specifics, which are conditioned by the requests of corporate clients. Companies purchase services or goods that can be used to solve business problems. The cost of one transaction in the B2B segment is much higher than in the B2C segment, therefore corporate clients pay special attention to calculating and justifying the long-term economic benefits from making a purchase.
Step 3
In the B2C segment, a client makes one-time purchases and the decision to purchase a particular product is often made spontaneously and emotionally. The process of making a purchase decision in the B2B segment takes a long time. On the client's side, in the field of corporate sales, a whole team of professional buyers and experts can work who evaluate all the specific characteristics of a product or service, as well as analyze the industry experience of the supplier. Long-term business relationships often develop between suppliers and customers.
Step 4
In the field of corporate sales, the number of potential customers is limited, therefore, market participants carefully work with each potential buyer and often change the product according to the wishes of the client. The marketing of this segment widely uses the concept of a unique selling proposition.
Step 5
In corporate sales, mass advertising is not used, since the sales policy is focused not on the mass consumer, but on the individual client. In the B2B segment, customers receive information about suppliers from specialized professional publications. When making a purchasing decision, the supplier's reputation in the professional community is also of great importance. Salespeople serving corporate sales must have a good marketing background because direct selling is highly effective in this market segment.
