What is B2B Marketing? What are B2B Types?
In the business to business model, there is a trade between two companies. It is a marketing process that continues with the sale of products and services to companies, not directly to consumers.
We can give examples of some situations where the B2B business model is used in many areas, especially in e-commerce;
The purchase of a retail company’s products from another company, a wholesaler.
The fact that a manufacturing company meets the raw material it needs while performing production from another business.
For the B2B business model, it is not mandatory for the trade we mentioned to run on a tangible product.
Collaboration with a consultancy firm as a result of a firm’s inadequacy in any subject is also an example of a business to business business model.
B2B Types
The two most important points that distinguish B2B types from each other are the product and the seller. The sector in which the company sells is another factor that separates B2B into different types.
For example, if the firm operates in a single sector, this is called vertical B2B.
However, if the firm operates in more than one sector, the sales activities of this firm are called horizontal B2B.
We can group the types of business to business model under three main headings;
Product Based B2B Business Model
Service Based B2B Business Model
Software Based B2B Business Model
Product Based B2B Business Model
It is the type of business to business in which the trade between companies takes place over tangible products. Companies that use B2B through e-commerce often benefit from this type of B2B.
As we mentioned in the previous titles, B2B can happen when a retail company buys products from a wholesaler. Or, a company can meet its raw material needs for the product it will produce from another business. In both cases, there is a physical product. Therefore, these cases exemplify the product-based B2B model.
Service Based B2B Business Model
In the service-based model of B2B, there is no need for a tangible product. What is traded is usually a service. For example, if a company has a problem with a department and purchases services from a consulting firm on this issue. Likewise, marketing, advertising, etc. Consulting on issues also sets an example for service-based B2B.
Software Based B2B Business Model
It is the trading of software-based products between companies. For example, a software company creates an online shopping application for a clothing brand. In the next process, it monitors the availability of this application. This can be an example of software-based B2B.
Implementation of the B2B Business Model
In order to implement the B2B business model, you must first know your company well and analyze the target audience well. After analyzing your own company, you should research the companies you can cooperate with and analyze their profiles.
If you want to cooperate with a company, first of all, this company should know you. That’s why you should have a good marketing strategy. In this regard, you should use social media ads effectively, which will make your work easier.
One of the things that a company that will cooperate with you needs is the feeling of trust. You should promote your brand with a good marketing strategy. You should not lose the trust of the target company that you have gained. Therefore, it is very important to manage the process correctly.
Deliver your products on the agreed date. Inform the target company about the process step by step. Simple steps like these will ensure an effective commerce process for your brand. Once an effective process, the customer will ensure the continuity of the company’s shopping.
Advantages of B2B Business Model
A correct and effective B2B business model process will definitely be beneficial for your brand.
First of all, if the company you cooperate with is satisfied with the trade process, it will continue to cooperate in the future. This means a customer that gains continuity for your company.
One of the factors that makes the B2B business model advantageous is cost-effectiveness. When you plan your trading process for direct customers, you need advertising campaigns that you will run with large budgets. You try to reach thousands of people at the same time. Since the target audience is limited in the business to business model, the budget you will allocate to advertising may be lower.
B2B’s strong relationship with e-commerce is also an important advantage. So why?
B2B’s Relationship with E-commerce
A face-to-face trading environment is not a necessity in cases where the B2B business model runs on e-commerce. This makes things easier for both the seller and the customer. Creating a site for your e-commerce process and using this site effectively will again be a factor in ensuring the trust of the customer company.
B2B, which operates a strong branch with e-commerce, will also provide your brand the opportunity to expand abroad easily.
The way things work through e-commerce will allow your target audience to reach you easily 24/7.
Running the process with e-commerce will also save time.