Business to Business (B2B) - E-commerce
Business To Business (B2B)
Business-to-business (B2B) describes commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer. B2B branding is a term used in marketing.
The overall volume of B2B transactions is much higher than the volume of B2C transactions. The primary reason for this is that in a typical supply chain there will be many B2B transactions involving sub components or raw materials, and only one B2C transaction, specifically sale of the finished product to the end customer.
B2B is also used in the context of communication and collaboration. Many businesses are now using social media to connect with their consumers (B2C); however, they are now using similar tools within the business so employees can connect with one another. When communication is taking place amongst employees, this can be referred to as "B2B" communication.
Etymology
The term was originally coined to describe the electronic communications between businesses or enterprises in order to distinguish them from the communications between businesses and consumers ("business-to-consumer"). It eventually came to be used in marketing as well, initially describing only industrial or capital-goods marketing. As of 2012 it is widely used to describe all products and services used by enterprises. Many professional institutions and trade publications focus much more on B2C than B2B, although most sales and marketing personnel operate in the B2B sector.
One of the characteristics of a B2B product is that in many cases it is bought by a committee of buyers. It is important to understand what a brand means to these buyers. Buyers are usually well-versed with costing levels and specifications. Also, due to constant monitoring of the market, these buyers would have excellent knowledge of the products too. In many cases the purchases are specification driven. As a result of this, it is vital that brands are clearly defined and
Business-to-business (B2B) describes commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer. B2B branding is a term used in marketing.
The overall volume of B2B transactions is much higher than the volume of B2C transactions. The primary reason for this is that in a typical supply chain there will be many B2B transactions involving sub components or raw materials, and only one B2C transaction, specifically sale of the finished product to the end customer.
B2B is also used in the context of communication and collaboration. Many businesses are now using social media to connect with their consumers (B2C); however, they are now using similar tools within the business so employees can connect with one another. When communication is taking place amongst employees, this can be referred to as "B2B" communication.
Etymology
The term was originally coined to describe the electronic communications between businesses or enterprises in order to distinguish them from the communications between businesses and consumers ("business-to-consumer"). It eventually came to be used in marketing as well, initially describing only industrial or capital-goods marketing. As of 2012 it is widely used to describe all products and services used by enterprises. Many professional institutions and trade publications focus much more on B2C than B2B, although most sales and marketing personnel operate in the B2B sector.
One of the characteristics of a B2B product is that in many cases it is bought by a committee of buyers. It is important to understand what a brand means to these buyers. Buyers are usually well-versed with costing levels and specifications. Also, due to constant monitoring of the market, these buyers would have excellent knowledge of the products too. In many cases the purchases are specification driven. As a result of this, it is vital that brands are clearly defined and