Defining Business MarketingBusiness marketing includes all activities involved in communicating the value of a business's products and services to another business. Show
Learning Objectives Define business marketing Key TakeawaysKey Points
Key Terms
What is Business Marketing?Business marketing is the practice of individuals or organizations (i.e., commercial businesses, governments, and institutions) promoting and selling products and/or services to other organizations. These organizations resell or use these products and services to support their operations. Companies that act as suppliers or manufacturers may also integrate other business products into their own product offering to improve performance and functionality. Unlike a consumer, who makes a purchase based on his or her individual needs and desires, businesses appoint individuals who act on behalf of the organization. B2B Promotional Mix Like business-to-consumer (B2C) marketing, business-to-business (B2B) marketing, or business marketing, relies on product, price, placement, and promotion to competitively
position the product offerings, promote the brand, and efficiently use company resources. Similar to consumer marketers, business marketers must create an integrated marketing communications strategy to ensure products and promotional methods complement and support each other. Business Marketing: A trade show is a common promotional element in business marketing. Measuring B2B Marketing Success Customer relationship management (CRM) systems are often used to assess marketing performance in B2B organizations. B2B sales cycles can last more than several months
and involve numerous stages before the sale is completed. Therefore, CRM systems help business marketers integrate metrics from different activities to accurately assess how marketing directly contributed to the transaction. For example, labels may be assigned to certain promotional elements (e.g., website, trade show) in the system to indicate where and how prospects converted to customers. B2B vs. Consumer Marketing: Similarities and DifferencesB2B markets to individuals acting on behalf of organizations, while consumer marketing targets single individuals who pay for their own transactions. Learning Objectives Describe the main similarities and differences between B2B and B2C marketing Key TakeawaysKey Points
Key Terms
B2B versus Consumer Marketing: Similarities and DifferencesConsumer marketing, or business-to-consumer (B2C) marketing, sales are made to individuals who are the final decision makers, though they may be influenced by family members or friends. A business marketing, or business-to-business (B2B) marketing, sale is made to a business or firm. Buyer BehaviorWhereas emotional factors play a large role in B2C purchases, B2B purchasing decisions tend to be less emotional and more task-oriented than consumer buyer markets. Business customers often look for specific product attributes such as economy in cost and use, productivity, and quality. Additionally, B2B purchasers generally spend more money, as the buying process tends to be more complex and lengthy. Buyer-Customer Relationship While consumer marketing is aimed at large groups through mass media and retailers, the negotiation process between the buyer and seller is more personal in business
marketing. Sales representatives and marketers are often assigned to market to individuals who act as influencers or decision-makers in the customer organization. The bulk of a consumer's interaction with a brand typically happens via an advertisement, promotion, or transaction. In contrast, B2B marketing can include numerous meetings between the seller and buyer before a transaction occurs. Communications ChannelsAlthough on the surface the differences between business and consumer marketing may seem obvious, there are more subtle distinctions between the two, with substantial ramifications. The evaluation and selling process for B2B purchases are longer and more complex than consumer purchases. However, business marketing generally entails shorter and more direct channels of distribution to target audiences. Different aspects of the promotional mix can be easily personalized due to the relationship between a B2B salesperson and the individual buyer. Customer Event: Promotional channels such as events provide ways for B2B sellers to move prospects along the buying process. Most business marketers commit only a small part of their promotional budgets to general advertising, usually through direct marketing efforts and trade publications. For example, a business marketer may allocate spending to banner advertising or paid search. Similar to consumer ads, these advertisements lead to landing pages, where marketing messaging aims to convince web visitors to submit a form, download a brochure, or register for a webcast. While business advertising is limited, it helps generate leads that marketing can pass along to sales representatives. Similarities between B2C and B2B MarketingMarketing to a business and marketing to an individual are similar in terms of the fundamental principles of marketing. Both B2C and B2B marketing objectives reflect the fundamental principles of the marketing mix, and in both situations, the marketer must always:
Types of BusinessesPrimary ownership types of businesses include corporations, cooperatives, LLPs, LLCs, and sole proprietorships. Learning Objectives List the most common ownership types and industry classifications for organizations Key TakeawaysKey Points
Key Terms
Types of BusinessesAmerican economist Milton Friedman once famously proclaimed that "the business of business is business. " Capitalist economies such as the United States rely on businesses to legally produce capital from the trading of goods and services. There are many types of business entities defined in the legal systems of various countries. Moreover, the types of businesses that exist today can vary by jurisdiction. Primary ownership types of businesses include corporations, cooperatives, limited liability partnerships (LLPs), limited liability companies (LLCs) and sole proprietorships. Business Ownership TypesThe type of business a group or individual creates will influence the legal and tax structure of the entity. The following are some of the most common ownership types for organizations:
Business Industry TypesBusinesses also vary by industry due to the wide variety of products and service they offer to the market. The following industry classifications are usually applied to businesses:
Skyscraper: For a business, the ownership structure determines its tax and legal liabilities. Licenses and AttributionsCC licensed content, Shared previously
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Which of these make up the B2B businessBusiness-to-business (B2B), also called B-to-B, is a form of transaction between businesses, such as one involving a manufacturer and wholesaler, or a wholesaler and a retailer. Business-to-business refers to business that is conducted between companies, rather than between a company and individual consumer.
What is B2B marketing quizlet?Business-to-Business (B2B) Marketing. The process of buying and selling goods or services to be used in the production of other goods and services, for consumption by the buying organization, or for resale by wholesalers and retailers.
What is the B2C market?A: “B2C” stands for “business-to-consumer.” It's a type of business model geared toward individual buyers. This is the most common type of business model, most likely because consumers are easier to market to on a broader level than business stakeholders.
What is B2B marketing example?B2B (business-to-business) marketing is the act of advertising, promoting, and educating prospects and customers (other businesses) about your product or service. B2B marketing strategies vary greatly from company to company and are decidedly different from those used in the B2C (“business to customer”) sphere.
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