What is B2B?
"B2B" is an abbreviation for "Business-to-business" and covers trade and transactions between companies.
Below is a brief explanation of the various terms most commonly associated with the B2B market:
- B2B marketing covers marketing directed at businesses.
- B2B sales covers sales to businesses.
- B2B customer service covers service provided to customers who are businesses.
- B2B communication is communication between businesses.
- B2B customers are other businesses.
Types of B2B companies
Below are a few examples of B2B companies and their functions:
- Wholesalers (e.g. trade between suppliers and retailers)
- Suppliers (e.g. delivery of raw materials to manufacturers)
- Service companies (e.g. advisory firms, consultants, etc.)
- SaaS (software for businesses)
What characterises the B2B market?
B2B trade, which takes place between two businesses, is characterised by the following:
- There are often multiple decision-makers.
- The buying process is often longer.
- The customer journey is often more complex.
- There is little or no emotional involvement in the transaction.
- Rationality is paramount: economics, functionality and price are weighted heavily.
- Decisions and alternatives are often evaluated on the basis of data and figures.
- High average purchase value.
How do you market and sell on the B2B market?
As the characteristics of the B2B market outlined above illustrate, sales and marketing in the B2B space tend to focus on the value of the product/service rather than its features (see e.g. the EFU model).
In addition, the financial aspect should be highlighted and made clear, rather than relying on emotional appeals as in B2C.
If, for example, you are selling a new, technologically advanced and efficient machine in the B2B market, the primary focus should first and foremost be on the time- and cost-saving value the machine delivers — not on how the machine is built or which technologies have been used.
This can come later in the customer journey and will be of more interest to the specialist than to the management role, who is often the decision-maker within the company. However, this depends on who the decision-maker is, your product, your industry, the customer journey, and more. Furthermore, the customer journey is often more complex and longer, and involves several different individuals. This will be reflected in your marketing and sales strategy, which will typically involve influencing over a longer period of time, across multiple channels, and require more education — compared to, for example, sales and marketing in the B2C market.
Do you need help with your B2B sales and marketing?
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