Business-to-Business Marketing Essay
The main objective of any organization or business entity is to minimize on costs and maximize profits. Profits in an organization depend on the volume of products sold at the market place given forces of demand and supply. Products in an organization are sold to the market through various processes such as business to business marketing transaction. Business-to- business marketing is commercial transaction between businesses such as wholesaler and retailer. It is the opposite of marketing whereby goods and services are provided directly from manufacturer to consumers. A major difference between the two concepts of marketing is the volume of transactions.
The chain of supply for a business to business marketing ranges from raw materials to sale of finished goods. Business to business marketing therefore is said to be marketing of goods and services to businesses so as to keep such companies in operation. Most business to business markets include resellers, manufacturers, non-profit making organizations and the government. Haney Lewis, 1931 drew major differences between business-to-business marketing and traditional mode of marketing. A major difference between business-to –business marketing and traditional mode of marketing is that businesses that fall under this category make money off of consumer base and their
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Business-to –business marketing requires special concepts versus business-to –business basic marketing concepts and principles
According to (Sullivan Rawlie, 1990) Business-to business marketing has led to disagreement between marketing strategists and basic requirements in the field of marketing. It is a situation that has led to heated debate. My position as regards this issue is to support the concept that business-to-business marketing requires special and unique set of marketing concepts. Marketing goods and products between businesses requires marketers to develop special and unique skills so as to succeed in global markets. One major important concept is the issue of leadership development which exposes a marketer to best marketing practices across a wide range of areas.
A marketer who targets different companies is supposed to have adequate skills in market selection, product positioning, customer management, product branding, lead generation and social media. This is according to Grunhagen Marko, 2008. As compared to traditional way of marketing whereby markets interact with individuals one on one, business-to- business marketing involves more than that. In many occasions the marketer does not come into conduct with the customers in this case organizations or businesses but markets the products online. Assessment of the market is a basic aspect in business-to-business marketing and requires the participants to have thorough knowledge on how to acquire information.
Marketing goods and services to a company or another business entity through business-to-to business marketing fundamentally needs the marketers to be more concerned about the quality of products. This was emphasized by Dennis Charles, 2002 in his publication titled “Marketing the e business”. Quality of goods and services provided to other businesses is the most important element that maintains a strong relationship between one business and another. Marketers in business-to-to business marketing promote goods and services that help other companies to run their operations. This requires thorough knowledge and specification in products that are only necessary to the business.
Some of goods and services that are provided by one business to others include raw materials, equipment, supplies and processing services. This is requires the marketer to have special attributes so as to succeed in provision of goods and services to other companies. According to (Prasch Robert, 2006),Business-to-business marketing only targets other companies and not individuals thus it requires skills on how to follow certain channels so as to avail goods and services to targeted business entities. Marketers in business-to-business marketing are supposed to have special and unique set of marketing concepts so as to survive in the entire global market.
Sullivan Rawlie, 1990, New Trends in Business-to-business Sales Require Interdynamic Integration, Review of Business.
Grunhagen Marko, 2008, Entrepreneurial and Small Business Marketing: An Introduction, Journal of small Business Management.
Haney Lewis, 1931, Business Forecasting: The principles and Practice of Forecasting Business and Stock-Market Trends with Special Reference to Business Cycles.
Dennis Charles, 2002, Marketing the E-Business, Routledge.
Prasch Robert, 2006, The Consumer Trap: Big Business Marketing in American Life, Journal of Economic Issues.