What is b2b

B2B is a term used to refer to corporate sales. Literally, B2B translates from English as "business to 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.

Instruction manual

1

The term B2B has been used in the Russian economy relatively recently; it is used to describe the business model of the relationship between commercial enterprises. A classic example of services in the B2B segment is consulting or auditing. Simultaneously with the term B2B, the concept of B2C came into use. This term was introduced to indicate the commercial relationship between organizations and private consumers (individuals). In the B2C segment, an individual buyer purchases goods to satisfy his need. Some companies provide services in both B2B and B2C markets.

2

Sales in the B2B segment have their own specifics, which is determined by the requests of corporate clients. Companies acquire services or products 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 of making a purchase.

3

In the B2C segment, the client makes one-time purchases and the decision to purchase a product is often made spontaneously and at the level of emotions. The process of making a purchasing 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 purchasers and experts can work, who evaluate all the specific characteristics of a product or service, and also analyze the supplier’s industry experience. Long-term business relationships often arise between suppliers and customers.

4

In the field of corporate sales, the number of potential customers is limited, therefore, market participants conduct careful work with each potential buyer and often change the product taking into account the wishes of the client. The concept of a unique selling proposition is widely used in the marketing of this segment.

5

Corporate sales do not use mass advertising, because the sales policy is not focused on the mass consumer, but on the individual customer. In the B2B segment, customers receive information about suppliers from specialized professional publications. When making a purchasing decision, the reputation of the supplier in the professional community is also of great importance. Merchants serving corporate sales should have a good marketing background, as direct sales are highly effective in this market segment.