From wondering how markets run to what business-to-business markets are and what B2B marketing actually is, the answer lies in rather simplistic terms. To answer these queries in order it is useful to think about a value chain that starts with buyer demand and from which dozens of business products or services are required. Let’s take an example of the simple things that we buy. They are not flown into the markets by accident. Let us imagine a cotton dress. There is a value chain of gigantic involvedness that begins with cotton that must then be then woven into a finished cloth, which in turn sown into a garment, then it is packaged with designing and dispersed through various levels until finally we choose it from a retailer.
By economics this is derived demand since the demand for everything to make that dress is made through as a result of the demand for the finished good. Business establishments sell cotton to middlemen or merchants who sell it to spinners and weavers, who again sell it to those who make garments and so forth. There is a goal of adding value in order to move the products down the chain until they finally reach the people who will buy it off the market; to us, who are the general public. This simply explains business to business marketing.
To consider a household, even the most intricate of buying decisions is centred on the small family unit while items such as food, cigarettes etcetera, usually involve just a singular person. The Decision Making Unit (DMU) for business-to-business markets is rather complex or at most has the potency for it.
When we order products of low value and low risk (let us take the omnipresent paper clip) we might just ask a peon, though, the purchase of a new estate that may be of extreme importance to an organization may engage a entire large team who then, make their decision over a prolonged period. The decision making unit at any one time may often be transient – specialists arrive and depart to make their multifarious contributions and there is the simplistic transfer, leave, joining which separates the business from family units. In Family units, this is less conspicuous. Business to business marketing pervades all through society in different forms but present.
This complex movement has various implications for business-to-business markets. The target consumers of B2B (as it is called) interactions are nebulous, made up of groups of constantly changing persons with different interests and impetus. Those who buy seek a profitable deal. Production managers want high output all through. Safety officers desire low risk. These points in general sum up the simple functional needs. Each individual involved in the DMU cycle pull their cultural and psychological inputs into the matter and this creates interesting diversity among products and suppliers. Business to business marketing is how our economy runs today with division of labour and a particularly common phenomenon that we only cannot term yet easily define.
The idea of a business-to-business buyer as having ‘rationality’ than their consumer supplement is perhaps controversial, but mostly believed to be true. .
To speak frankly business-to-business buyers are more predictable than their counterparts that we speak so reluctantly about. This calls for high end market intelligence and research about target consumers. Business to business marketing is all the rage today for an entire chain of system depends on its correct manipulation and understanding.