B2B MARKETING 7
B2BMarketing and Management
Marketingentails producers selling their products to a target bazaar. In somecases, the intended clientele is the final consumer. However, B2B(business-to-business) marketing refers to a unique form of promotionwhere the producers target other institutions that buy commoditiesfor either selling or renting to the end users. The business approachinvolves trading of both physical products and services (Blythe &Zimmerman, 2012). According to Glynn (2012), few businesses haveadopted the B2B selling approach when compared to the enterprisesthat market directly to the consumers. The primary aim of the B2Badvertising is fulfilling the needs other organizations. Forinstance, a large-scale cotton farmer targets to sell the produce tothe cotton spinners. Thespinners then sell the processed products to the weavers who use theraw material in the manufacturing of various forms of garments. Inall the stages, the buyers and sellers are targeting other businessesas their primary market.
Thesisstatement:The B2B business structure is a unique investment approach that issuitable for global business deals involving sales of massivequantities of supplies due to high customer loyalty and emphasis onquality products.
AlthoughB2B marketing is a promising investment approach, it has a complexdecision-making structure. According to Hague, Hague, and Harrison(2016), the marketing challenge emanates from the fact thatorganizations often purchase products of lower value with theintention of improving their worth through processing them. Cottonfibers, for instance, have a lower value than the woven byproduct.Subsequently, the management of an organization intending to ventureinto this business structure needs to have a big group of specialistswho should be consulted to analyze the quality of the products beforemaking a purchase. It is worth noting that the big team of managementoften contains individuals from diverse backgrounds, therefore, thestaff a range of functional and psychological needs when makingchoices. The diversity is crucial in delivering the functionalrequirements that B2B deals target. Hutt and Speh (2013) state thatthe decision-making process may further become complex since thedirectors and CEOs call for constant marketing improvement.Furthermore, performance tools such as marketing competence andefficiency are also necessary for determining the profitability of anorganization.
Rationalityalso drives the businesses using B2B marketing. Since the managementis purchasing products that would be sold to another company forvalue addition, the purchasers ensure to maintain the highest qualitypossible (Hutt & Speh, 2013). Given the necessity for trust, thesuccess of this investment model emphasizes on the reputation andbrand recognition. On the contrary, primary producers such as acotton farmer do not emphasize much on the quality of the product.Nonetheless, the consumers are much interested in the recognition ofthe organizations that manufactured a certain end product instead ofanalyzing the available information regarding the particular supplies(Hague et al., 2016).
Firmsalso use value proposition to gauge their importance to theirstakeholders who include clients, employees, and suppliers. It is animportant strategy in the marketing of a company’s products andservices. According to Piercy (2011), companies are required toidentify strategies that will provide unique value to the customersthrough better approaches and superior alternatives. Strategic modelson value proposition determine the buyers’ needs while seeking toimprove their value. In order to sustain customers, firms must createvalue that is geared towards satisfaction. Additionally, the plan isused to reduce the influence of the rival enterprises in the rivalryfor clients. Marketing-related functions aim at enhancing the reachof products or services to the target clients. It is in the bestinterest of business operators to create enviable relationships withthe stakeholders to improve business outcomes.
Accordingto Lilien and Grewal (2012), value proposition should identify thepros and cons of offering certain privileges to a client. In doingso, there is a great need to consider improvements in all levels thatinfluence business outcomes. Actually, process improvement isnecessary in a competitive field due to the threats and opportunitiesbrought by the changing dynamics. The move is instrumental towardsachieving efficiency, convenience, and satisfaction with anorganization (Homburg, Wilczek, & Hahn, 2014). To earn theirplace in established markets, the firms have to build great consumerrelationships with the involvement of useful strategies and brandmanagement.
Inthe contemporary society, B2B marketing is common as companies try toadopt new approaches to enhance competitive advantages. The currentbusiness environment compels firms to work in close collaboration torealize their organizational objectives. An automobile manufacturer,for instance, purchases products such as tires and glass forwindscreen from other manufacturers. B2B underscores the significanceof value proposition to ensure the input of the stakeholders isgreatly regarded. Further, there is significant innovation andemergence of tools that enhance the attainment of positive businessoutcomes in the wake of increased competition and technologicaladvancement. The current global changes have been augmented by theincreased competition and quality in the provision of goods orservices. It is thus essential for business operators to generate abalance between the stakeholder and organizational interests (Piercy,2011).Nonetheless, the simplified and elaborate approach should capture theincreased demand for business sustainability.
TheB2B model cannot be effective if a company fails to identify itsniche and needs of the clients. Such an understanding is crucial toensure a company concentrates on its strong points when marketing theproducts or services. There also emerges concern in the parentcompany, particularly manufacturing firms as they at times depend onseveral other companies. As such, it is important to develop astrategy that has great consideration of the internal and externalfactors likely to influence the attainment of positive outcomes. Theconcept of value proposition recognizes the need for commitment bybusiness operators to provide quality services or products to theclients. The model also has great focus on competitivedifferentiation that is meant to distinguish itself from thecompetitors. As Homburg, Wilczek, and Hahn (2014) note in theirstudy, the recognition of a company’s brand is a refection that thefirm is doing enough to retain and attract clients.
Accordingto Hutt and Speh (2013), marketers intending to extend to the globalmarket mostly target the developed countries such as South Korea,Germany, Japan and China since they use a lot of raw materials in themanufacture of advanced products. For instance, Japan imports rawiron, which, in turn, is used in the manufacture of automobiles.However, B2B marketing is also increasing steadily in the emergingstates, including Brazil, Russia, India and China (BRIC).
Anorganization considering this marketing approach may question thebenefits of this investment approach over the regular strategy thattarget consumer markets. Hague et al. (2016) argue that B2B marketingcustomer base is often long-term. As such, the initial investmentused to acquire the clients would be worth over time. Secondly,consumer marketing depends on efficient packaging, and it alsotargets different clients. On the contrary, B2B marketing relies onthe superiority of the products offered and the reliability of theirexcellence. Provided the seller can provide high-quality products,the investment can generate high returns that are worth the effort(Blythe & Zimmerman, 2012).
Inconclusion, B2B marketing is a suitable option for organizations thatare intending to extend to the international markets since it focuseson building trust with the buyers. Besides, firms ensure therecruitment of highly skilled professionals who can assist in theidentification and creation of products that would satisfy the needsof the clients. Besides, consumer marketing is largely based on thebranding to the extent that they may compromise the quality as theyare poorly informed about the superiority of the products offered inthe market
Hague,P., Hague, N. & Harrison, M. (2016). B2B marketing: What makes itspecial? B2BInternational.Retrieved on 18 Dec. 2016 fromhttps://www.b2binternational.com/publications/b2b-marketing/
Blythe,J. & Zimmerman, A. (2012). Businessto business marketing management: A global perspective.London, UK: Routledge.
Glynn,M. S. (2012). Business-to-businessmarketing management: Strategies, cases and solutions.(Business-to-business marketing management.) Bingley: Emerald.
Homburg,C., Wilczek, H., & Hahn, A. (2014). Looking beyond the horizon:How to approach the customers` customers in business-to-businessmarkets. Journalof Marketing,78(5),58-77.
Hutt,M. D., & Speh, T. W. (2013). Businessmarketing management: B2B.Australia: South-Western, Cengage Learning.
Lilien,G. L., & Grewal, R. (2012). Handbookof Business-to-Business Marketing.Cheltenham: Edward Elgar Pub.
Piercy,N. F. (2011). Market-ledstrategic change.London: Routledge.