understand what it is, examples and how to apply this strategy in your business – WAU
B2B marketing refers to the set of actions involved in business to business transactions. Unlike B2C, it deals with a less extensive and more vertical market. Check out how to apply it in your enterprise!
Many steps need to be completed before a product reaches the end consumer. A clothing company, for example, needs to rely on reliable suppliers to purchase the materials needed for production. In this way, many agents are involved in the operational process.
As it deals with a more consistent and specific demand, it is natural that several brands compete to become suppliers for other businesses. This involves not only the raw material for products, but also services necessary to enable the company’s operations.
It is in this scenario that we apply B2B marketing. In this text, we will explain the concept and make clear its difference to the B2C model. We will also highlight its benefits and tips for its practical application. Check out!
What is B2B marketing?
The acronym B2B is an acronym for Business to Business which, translated into London, can be understood as business to business.
Therefore, we conclude that this type of activity concerns the efforts to Marketing involved in transactions involving two companies: one that sells something and one that buys.
B2B marketing techniques are not so different from those used in conventional marketing, directed directly to the consumer. However, there is a significant difference.
While individuals make their decisions based on issues such as product popularity, status, branding and other emotional factors, B2B buyers are more objective. What matters to them is mainly O return on investment and cost-benefit.
Throughout the text, we will further explore the differences between the two modalities. Now, it is worth saying that, if maintaining a good relationship with the consumer is important in B2C, this becomes even more essential in B2B.
This is because, as it involves the activities of other companies, it is common for negotiations to be more intense, requiring a high level of confidence on the part of buyers. Besides that, this type of sale occurs cyclically, which makes customer satisfaction an essential part of their return.
To better understand the characteristics of B2B, let’s look at the main formats of this modality:
- transformation – industry sells to another industry;
- distribution – industry sells to distributor;
- resale – distributor sells for resale.
What are its benefits?
Using B2B marketing in your business is a practice that can benefit your organization. Among the main advantages that can be achieved by investing in this type of business, is the possibility of establish long-term relationships.
This is because, as we mentioned, transactions occur cyclically. That is, if you offer a quality service or product, this will boost the performance of the purchasing company. As a reflection of this, she will be reluctant before switching her services to those of another company.
Furthermore, by dealing with well-defined accounts, is easier to control the churn rate, which measures the number of customers who have stopped doing business with your company in a given period of time.
Another point is pricing. By characteristic, the B2B model usually works with higher value transactions. Thus, a low volume of closed deals can represent a great profit potential. To better understand the reason for these benefits, let’s look at the differences between this model and B2C.
What is the difference between B2B and B2C marketing?
Throughout the post, we have already made clear some of the differences between the two modalities. One of them is the character of the transactions, which, in Business to Business, occur in a cycle that can be clearly observed. It is not what usually happens in B2C, which, by the way, means Business to Consumer.
For dealing with individuals, is very more difficult to predict when they will make their purchases, with some exceptions. When selling to companies, however, you can assume your purchasing needs according to production planning.
On the other hand, end consumers make their purchases less complex. While companies need data, studies and time to determine if your product is ideal, people who enter retail do not have as much planning and often buy impulsively.
Another visible difference is the size of the market in each model. In B2B, we see a more vertical market, with limited options for each type of service.
In B2C, the relationships are increasingly horizontal, allowing consumers a wide variety of alternatives to purchase the same item.
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How to apply B2B marketing in practice?
Having understood what B2B marketing is, what its advantages are and how it differs from B2C, let’s turn to its application in practice.
As in the end consumer market, the transaction between companies depends a lot on the approach used to be efficient. For that, check out some tips!
Create a relationship of trust
We mentioned at the beginning of the text that establishing relationships of trust is crucial for the survival of a company in this segment. To reach that level, it takes more than offering quality.
That is why it is essential to generate excellent experiences for potential customers in order to establish a positive image for your brand. To this end, many companies invest in corporate events as an opportunity to create rapport with consumers.
A famous example is that of General Eletric who, during the 2016 Olympics, decided to use social networks to engage their personas, which were composed of different types of company managers. In this case, the platform chosen for the campaign was LinkedIn.
Through publishing content on its blog and sending emails, the brand attracted its targets and instigated them to engage with the material. In the end, the 10 most engaged managers were invited to a face-to-face event at the company’s headquarters in São Paulo.
Invest in Content Marketing
The technique of attracting the customer through content, in fact, arises from a type of approach increasingly used: Content Marketing. Unlike the traditional model, this practice seeks to create qualified content for attract, nourish and convert the persona.
In the case of B2B, the central idea is to transform your brand into an authority on the subject. That way, whenever you need services related to yours, the customer will have your brand as Top of Mind.
When combined with SEO techniques, Content Marketing makes it possible that your blog or website appears among the first results of related searches on Google. Thus, your page’s traffic increases and paves the way for obtaining leads.
Once obtained, these contacts go through a nutrition process, which can involve email marketing practices. With the high degree of segmentation made possible, it is much easier to produce campaigns that have a positive impact on the persona.
Be aware of your competitors
Benchmarking your competitors is essential to ensure that your business is on track. After all, although it does not usually have the same degree of competitiveness as B2C, the B2B model is composed of several companies competing for the same niche.
Thus, identify your main competitors and keep an eye on their activities. If they are getting more results than you, find out what they are doing for it. An encouraged practice is to compare the keywords used in the Digital Marketing strategy.
If the competing company gets more engagement and gains followers on Instagram, for example, it may be using more accurate terms than its communication team.
Explore Big Data
As already mentioned, segmenting consumers is essential to create an efficient relationship with each one. However, how is it possible to make this categorization? To begin, it is important to create the persona, who represents your company’s ideal customer.
To create this semi-professional profile, it is necessary to mix demographic data with intuitions about the desires and needs of your consumer. And that’s where Big Data comes in. Using this technology, it is possible to gather, analyze and use customer information to better understand their behavior.
With this, you gain valuable insights to improve your strategy or to develop approaches that have a more certain impact on the relationship with the consumer.
B2B marketing is a modality practiced by several companies around the world. As it is a larger and more delineated market, The B2B industry presents commercial advantages, such as higher pricing, cyclical transactions and the possibility of long-term relationships.
Unlike B2C marketing, B2B has a more complex negotiation process, requiring great convincing power on the part of the selling company. However, once a partnership is successful, the chances of maintaining it for a long period of time are much greater.
So, did you understand what B2B marketing is? Were your differences clear for B2C? If you want to know more about selling to the end consumer, take a look at this e-book where we talk about content mapping for B2C companies!