Business-to-Business (B2B)

Business-to-business (B2B) denotes transactions that occur between companies, such as interactions between a manufacturer and a wholesaler or between a wholesaler and a retailer, rather than transactions with individual consumers. B2B enterprises constitute a substantial segment of the economy, especially in organizations with 500 or more employees, where it is estimated that approximately 72% primarily cater to other businesses. The total volume of B2B transactions significantly surpasses that of business-to-consumer (B2C) transactions.

A key distinction between B2B and B2C transactions is the nature of the entities involved. B2B transactions take place between businesses, such as a manufacturer and a wholesaler, or a wholesaler and a retailer. Conversely, B2C transactions involve a company selling goods or services directly to individual consumers.

Another difference is evident in the decision-making process. B2B transactions frequently involve a buying committee that is responsible for product selection and decision-making, which may include business and technical decision-makers as well as influencers. Significant purchases may necessitate a request for proposal (RFP), where potential vendors provide detailed proposals that outline their products, contract terms, and pricing. In contrast, B2C transactions generally involve individual consumers making choices based on their personal preferences and requirements.

To develop successful B2B marketing strategies, businesses should concentrate on a mix of tactics.