What Is Business to Business (B2B)? Definition of Business to Business (B2B), Business to Business (B2B) Meaning and Concept
The to - business business (B2B), which means business to business, is a model of transmission network information related to commercial transactions that companies make.
In the Marketing world , business to business is known as a way of working between companies directly ("business to business"). This is due to the fact that it encompasses the commercial operations that the firms carry out among themselves and without depending on the end customer. That is, in this type of marketing strategy, companies are targeting other companies, rather than a consumer.
What is business to business for?
Through business to business a type of electronic commerce is developed, which encompasses different online activities. Activities such as the purchase of goods and services, using, as a method of payment, tools such as credit cards, so-called electronic purses or Internet payment services. Some of the main advantages derived from the use of B2B shares have to do especially with the recent evolution that the online environment has experienced, as well as its vital importance on a day-to-day basis.
The to - business business involves making business operations more quickly and safely. This is because they are developed between the electronic systems of the corresponding companies. In the same way, this helps the number of transactions to increase and, therefore, contribute to the growth of competition. On the other hand, the B2B helps the commercial activity to suffer, thanks to this rapid increase, a reduction in many management costs and, therefore, higher margins for the selling companies.
As pointed out at the beginning, the very definition of business to business assumes that the end customer is not taken into account in its transactions. For this other type of activity there is another more specific phenomenon for customers, which is known as business to consumer.
Business to business in the company
Companies that identify with a B2B service accept that the group of potential customers they have is much smaller than they would have if they were targeting ordinary customers and not other businesses. However, the positive of this fact is that in this way they can further personalize their product, as well as the marketing strategies used for its commercialization.
In this regard, it is common for companies to maintain customer loyalty relationships among themselves, due to the nature of their sales. In this way, maintaining suppliers throughout certain periods of time. This is also important given the difficulty that exists within this modality when it comes to getting new business clients. Normally, companies use multiple specific platforms on the network to search for these commercial relationships.
In the same way, they can also be helped thanks to existing business exchanges by geographical areas or industrial sectors, as well as publications and printed media that fulfill this information task.
The practice with B2B is common in the daily work of wholesale companies that are committed to electronic commerce or in other companies that offer goods and services to others, such as consultants and auditors, for example.