B2B Marketing Theory and Relevant Examples

Category: Theories
Last Updated: 20 Apr 2022
Essay type: Process
Pages: 5 Views: 887

In Business to Consumer marketing, the consumers purchase the product because they derive pleasure out of it or because they need it in their everyday consumptions and not because they very much in need of it for improvement and to gain profit. Whereas in Business to Business marketing, business purchaser buys a product because they need it for them to become competitive, cost-effective and triumphant in the business line they chose (Smith, 2002). Another difference would be Business to Consumer marketing involves only “small transactions” since they are only concerned with the individual transactions.

While Business to Business marketing conducts “large transactions” since their market includes another business entity or company (Oliva, 2007). The mode of selling of Business to Consumer marketing is only linear. Meaning, there is a direct and simple way of conducting a transaction. Whereas in the Business to Business marketing the purchasing process of a certain company for a certain product would have to take series of processes before ordering the chosen product (Oliva, 2007).

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Another exceptional difference of the two would be, in Business to Consumer marketing, the customer of the company has a limited perception on the product that the company is providing. While in the Business to Business marketing, since the company is dealing with the intellectual persons, they have the capacity to fully understand the value of the product. Because of this, low profile advertisement or marketing communication will not take any effect on your target business customer (Smith, 2002).

Under the Business to Business marketing, business entities are “information seekers” and always on search for new ideas that would improve their firm or company, have higher investment return or any information that would bring them to the top of their career. Whereas, individual consumers in Business to Consumer marketing are always contented with what is already available in the market. they lack initiatives to look for new ideas since they are just purchasing the company’s product/s for pleasure and not for improvement (Smith, 2002).

Lastly, in B2B marketing, you have to be direct with your customer regarding your product. You cannot make some ‘flowery’ features just to have their ‘yes’ on your product. What you need is to be precise, direct to the point and state all the reasons why your customer should buy your product. On the other hand, in B2C marketing, the firm can add ‘colors’ to their presentation to attract the customers. The more creative you present it, the higher is the probability that your good will be purchased (Smith, 2002).

The above said differences has to be consider by a Business to Business marketing type of firm fro them to easily gain the market share of their target customers or consumers. Like for instance, you are selling computer units to a telephone company. In the presentation that you are going to do, you don’t have to hire commercial actors or actresses to present the features of your product. What you should do is to prepare a demonstration or presentation that will educate the telephone company regarding what will be the help of your computer to further improve their services.

Sometimes you have to be technical with the term since that is the easiest way for the intellectuals to fully understand what you are saying. Role of Personal Selling in Business to Business Marketing Personal selling is the communication of the sales person with their possible customer done verbally for the purpose of closing the deal with the customer. The main focus of personal selling is to develop a good relationship with the potential buyers most especially the “will” to close the deal (tutor2u. com, 2007).

One of the roles of sales person under the Business to Business marketing is the prospecting or trying to find new customers or consumers. Since we are considering here a Business to Business type of marketing, it is important for the sales person to clearly identify the right type of customers for their product. The sales person should focus on business type customers and not individual customers. Therefore sales person should be direct when presenting the goods to the company managers or any other important person from the prospect company.

What the sales person needs is to be precise, direct to the point and state all the reasons why the company should buy the product should buy your product. Another role of sales person is having communication with the current and probable customers regarding their product. Company managers are information seekers and thus, sales person should communicate from time to time to their potential and current customers regarding the latest information on the products of the sales person.

For example, colorful or creative ads of, let say, your software company did not attract the business entities to buy your products until you send them e-mails and journals that explains the features of your products in technical terms. Sales person should know the right means of communicating based from the type of their customers. An additional role of a sales person is the selling of the products, which includes getting in touch with their customer as well as responding to the questions and aiming to close the deal with the customer. For instance the sales person is selling computer units to a telephone company.

What you should do is to prepare a demonstration or presentation that will educate the telephone company regarding what will be the help of your computer to further improve their services. Sometimes you have to be technical with the term since that is the easiest way for the intellectuals to fully understand what you are saying. Servicing is the third role of the sales person. Based from this role, the sales person should provide support and service to the customer from the delivery up to the post sales of the product. Providing products to a business customer is not enough.

Often time, the sales person is being required to entertain additional questions upon delivery of their goods. Company officials are known for their being specific with the details. The sales person should be able to answer all the questions that might rise by any officials of their business customer. Sales person are also being tasked to gather information on their market in order for them to make necessary adjustments to their plans and other strategies. Customer businesses are very dynamic when it comes to choosing products for their company.

It is important for the sales person to gather information on the current demand trend of their prospect company in order to make appropriate strategies and plans. The last but not the least is the allocation especially during the times of shortage. Sales person must have the ability to think on the ways by which he/she would allocate the available stocks of the company.

REFERENCES

OLIVA, R. (2007) Business-to-Business Marketing Overview.

SMITH, T. (2002) B2B Marketing? TUTOR2U. COM (2007) promotion - personal selling.

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B2B Marketing Theory and Relevant Examples. (2016, Jul 15). Retrieved from https://phdessay.com/b2b-marketing-theory-and-relevant-examples/

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