What is Business to Business (B2B) as explained by Alain Templeman, An experienced marketing technology executive, Brand strategist, Analytics guru, and Sales Engineer?
It is also called as B2B is primarily the business between one or more business corporations rather than B2C, which is business to consumer where the business is between Business Corporation and with the consumer.
Examples of Business to Business (B2B)
There can be quite a few examples of Business to business (B2B).
As the companies depend on each other every company that buys raw resources from other company before launching its product in the market as the finished product can be considered as having Business to business transaction of commerce whereas the Business to commerce is exactly the opposite where transaction of commerce happens between the individual or the individuals and the company or firm.
The most typical example of B2B can be the automobile industry.
The most visible part of the business to business type of transaction is that it is having significantly higher dollar value as compared to that of business to consumer(B2C) because businesses buy higher-priced goods and that too in bulk whereas the case may not be the same in the consumer to business which usually restricts themselves with smaller transactions.
According to Alain Templeman and in his own words, Every B2B can be considered as B2C as one of the business corporations will always be selling something and other will always be buying something and hence the business corporation which is buying can be considered as a consumer in itself.
B2B – Business to Business Model- How businesses depend on each other and get benefits from each other.
As every business corporation must have some kind of requirement of the product which they don’t produce and which is required for the final launch of the product and in most B2B models it is the utmost requirement to have a deeper knowledge and quality of the raw resources as it will ultimately make the finished product having more quality and user-friendliness.
Vertical B2B Model-The Cornerstone of Businesses
Vertical B2B model is usually oriented to manufacturing. It is divided into two directions- upstream and downstream. Producers or marketable retailer can have a supply relationship with upstream suppliers, including manufacturers, and form a sales relationship. As an example, Dell company is working with upstream suppliers of integrated circuit microchips and computer printed circuit broads.
According to Templeman, “The most visible and clearly recognizable part of Vertical B2B model is that one of the business corporations must be the seller in the market sense whereas other must be the buyer and it is the most common type of B2B i.e. business to the business model.
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It has more scope as most of the products are finished products once they land up in the market as far as that particular product is concerned and most of the industries have a great inter-dependency on each other so that they can function smoothly and efficiently.
A vertical B2B website can be parallel to the enterprise’s online store. Through the website, the business can give confidence their products vigorously, more efficiently and more comprehensively which enriches transactions as they help their customers understand their products well or the website can be created for commerce, where the seller advertises their products to promote and expand transactions in an intuitive and convenient way.
Horizontal B2B Model-The Lesser Known Business Model
Horizontals B2B is the transaction pattern for the intermediate trading market.
It gives attention to similar contact of a range of industries into one place, as it provides a trading opportunity for the purchaser and supplier, typically connecting company that does not own the products and do not sell the products. It is only a platform to bring sellers and purchasers together online. The better platforms help out buyers easily find information about the sellers and the relevant information about the products via the website.
Buyer – Oriented
Buyer’s oriented B2B trade exchanges are operated by a society of buyers who want to support a well-organized purchase process. For buyers, this environment helps in reducing administration costs and selling the products as well as getting the best prices.
Supplier oriented market place is also known as supply directory. These types of business exchanges are managed by suppliers who want to create online sales channels.
Though B2B is critical to the success of many industries when considering your company’s potential, do not limit yourself to one model, B2B, B2C and C2B models need not be exclusive:
Combining their exacting strengths can make new opportunities for your business.
A business can package consumer insights and consumer-centric solutions to sell or provide as a value-add to its business customers/clients, Alain Templeman said. “In a customer-driven market, such a service can be extremely valuable to a business”
If you want to get into the B2B market but don’t know where to start you can reach to Alain Templeman.
Benefits of Buying Reviews For Your Business
Business review is the method which also shows the bad and good impact of the company. This also helps customers to explore the potential of the company and know about business reputation among customers.
There are mainly four types of commercial transactions.
- B2B or business to business.
- B2C or business to consumer.
- Buyer oriented.
- Supplier oriented.
As far as B2B business is concerned it is basically between business organizations as its name suggests. It happens in bulk as the corporate organizations mostly have high commercial transactions and they depend on one another for the smooth functioning of each other as no organization can work in complete isolation and one organization will need to have raw resources before launching their products in the market.
B2C is business to consumer business model and it has its own fair share of availability in the market. This type of transaction is usually less and not in the bulk.
This type of transaction happens between businesses and consumers. This happens when the product has finally launched in the market and is now ready to be consumed by the consumer.
Buyer leaning B2B trade connections are operated by a community of buyers who are looking to support an efficient purchasing process. For buyers, this environment helps to acquire the best pricing for products from selling along with lowering the administration cost.
Supplier oriented marketplaces are also known as supply directories. These types of trade exchanges are managed by suppliers who are looking to generate an online sales channel for potential buyers.
In the end, it goes without saying that it depends on individual to individual and organization to an organization that what suits them most, according to the businesses they have and the needs they have.