Importance of Business to Business Marketing
The idea behind this element of marketing is to develop and promote products in a way that is beneficial to both parties. The practice of Business to business marketing occurs more often than you may be aware. Some companies manufacture products and sell them directly, but most companies at least sell to distributors who then sell their products as retail. This is the most common form of business to business marketing that occurs within industries. However, just as important is the strategy of marketing a product directly to another business for their personal use. The key to succeeding in either of these steps of marketing is truly presenting an offer that is attractive to both you and the other business.
When a company manufactures a new product, decisions must be made regarding how to market the product within that industry. Unless the company plans to sell only directly to consumers through a website or store, the manufacturer must find a distributor who is willing to buy the products and sell them. These operations within an industry are a form of business to business marketing. In order to do this effectively, the manufacturer must produce a quality product that consumers are willing to buy as well as present a clear picture of the advantages that carrying their product will give to a distributor. Most distributors will not be willing to purchase and sell a product for retail without some proof from the manufacturer that the product is popular among consumers. Finding distributors is a time consuming process for manufacturers. Research must be conducted regarding the demographic of customers who frequently shop at the location and their likelihood of buying the product. Making the right decision in finding distributors is important to both the retail distributors and the manufacturers. If a poor decision is made, the manufacturer is also affected since time was spent on a business relationship that may not prove to be fruitful, and products were not placed in locations where they could be sold.
Marketing between different businesses is the less common version of business to business marketing, although this strategy is being used more frequently today than in the past. In some ways, this is similar to marketing to consumers, because the business is the consumer. However, there are some important differences between selling directly to another business and marketing to consumers. When marketing to consumers, the manufacturer typically advertises a general product and attempts to attract the attention of consumers, waiting for those who are interested to make contact. When marketing directly to a business, however, the burden lies with the manufacturer to present a case to the business manager, proving why the product will be beneficial. The practice of developing products directly by use for other businesses rather than the general public is becoming increasingly common.