B2B or Business to Business is the designation for the provision of services and goods between companies. They also speak of BtB. A counterpart to B2B is Business to Consumer or B2C. This includes transactions aimed at consumers. The B2B market or business market is usually characterized by the trade in larger batches of goods and the offering of products and services that focus on better business operations across the board. Think of Financial Software, Marketing Consultancy, Organizational Advice, etc.
B2B examples in the Netherlands
Examples of companies that mainly focus on B2B are:
- Technical Union; a wholesaler of technical articles for construction and installation. One of the larger wholesalers in the Netherlands, also a major player in business-to-business. Other entrepreneurs come here to purchase goods and services.
- Exact Software: a supplier of administration software that focuses on entrepreneurs.
- ASML: a chip machine manufacturer that supplies machines and chip technology to manufacturers of, for example, consumer goods worldwide.
B2B examples abroad
- HubSpot; a software company that focuses on companies with its marketing automation products. This tooling is also not bought or used by consumers, making HubSpot a typical example of a b2b software company. This tool is also available for Dutch companies.
- Mearsk: a major b2b player worldwide; mearsk is a container shipping company that transports goods on behalf of manufacturers and wholesalers.
Characteristics of B2B
B2b and B2c have differences and similarities. Some characteristics of B2B are:
- Difference in markets
In the B2C, consumers are seen as customers within their own DMU (such as the family). Customers and prospects know other segmentation criteria such as: average income, residential region and spending patterns. In B2B markets consist of companies or individuals with a self-employed status. Segmentation and market approach is more about the industry in which companies operate, company size, budgets, type of activities, number of branches, number of countries in which they operate. Within these companies, the DMU is looked at, usually on the basis of employee roles.
- Other motifs
The difference between b2b and b2c is also related to the differences in purchasing motives. A buyer at a B2B organization is charged with the purchase of a good or service in relation to a business process. Such as a machine, software, semi-finished products, training or consultancy services.
A consumer usually has buying motives that are based on other leitmotivs. The nature of the products and services is different and designed to meet different needs. A vehicle fleet for an organization has a different function than a family car. This also shows the difference in the purchasing process.
- Purchasing Process
This also means that a purchasing process (customer journey) is different. A buyer in a b2b environment orientates with a different focus than a consumer. For example, the focus is on product specifications, the status of the company that offers the products/services, costs and references of other companies with business interests and a well-justifiable decision as motivation. Incidentally, the importance of emotion and responding to it is becoming increasingly important within B2B. Ultimately, buyers at companies are just people with emotions.
Closing a deal is also done in a different way in B2B than in a B2C environment. The decision-making process in B2B often involves a dmu or a decision tree involving a dmu. This also has an impact on the lead time of purchasing processes.
Education and training about business to business
The b2b world is constantly changing. Not only do we see an increasing focus on emotion and awareness in business-to-business marketing, the role of companies in the business chain is also constantly changing. We see movements of B2B organizations that increasingly focus on the end customer and skip links in the value chain. We also see developments in the field of platforms or marketplaces that have a major impact on B2B companies. It is therefore important to stay well informed of the latest developments.
On training platform springest you will find a collection of education and training for B2B professionals such as:
A tip for those who want to immerse themselves further in the world of Business-to-business, marketing and platform thinking. Recommended! ->
More about B2B:
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