B2B (business to business)

Contents

• Introduction to B2B
• B2B Examples
• Features of B2B Sales
• Stages of B2B Sales
• B2B Sales Techniques
• Specifics of B2B Market Promotion

Introduction to B2B

B2B (short for business-to-business) is a business model where both buyers and sellers are legal entities. Unlike B2C, where products are purchased by end consumers for personal use, in B2B companies buy goods for further processing or resale. An example is the company "Stankom," which sells and configures CNC machines, operating exclusively in the B2B sector, as such products are not intended for individual consumers.

B2B Examples

The sales cycle in B2B starts with the procurement of raw materials and resources and ends with the delivery of finished products to the end user. This category includes the following types of companies:

• Resource Suppliers: Oil, gas, minerals, and ore are the primary materials for any production.
• Component Suppliers: Transform raw materials into intermediate products like metal sheets and equipment parts.
• Product Manufacturers: Factories assemble finished products, including machines, ships, and excavators.
• Users: Finished products are purchased by airports, construction companies, and agricultural enterprises, which may also operate in the B2B sector.

Additionally, services such as advertising agencies, banks, insurance and law firms, and IT companies are actively developing in B2B. There are many companies that operate exclusively in this area, such as transformer manufacturers or parts for machines, and those who successfully combine B2B and B2C, such as internet service providers.

Features of B2B Sales

B2B sales have several unique characteristics that distinguish them from B2C:

• Long Sales Cycle: The process can take months, starting from initial contact to signing a contract.
• Multiple Approvals: The more expensive the deal, the more people are involved in the process, including decision-makers.
• High Transaction Value: Unlike mass sales, where the number of units is large, in B2B the number of deals is smaller, but their value is significantly higher.
• Rational Decision-Making: Purchases in B2B are based on clear calculations and analysis, rather than emotions.
• Partnership Relations: Companies strive for long-term cooperation, as retaining customers is cheaper than acquiring new ones.

Stages of B2B Sales

The classic B2B sales process consists of five key stages:

• Establishing Contact: Networking at exhibitions, cold calls, and personal meetings.
• Identifying Needs: Determining the decision-maker and acceptance criteria, as well as the importance of various factors for the client.
• Presentation: Presenting the product based on the identified needs of the client, focusing on its benefits.
• Handling Objections: Identifying and overcoming the client's doubts, providing necessary information and examples of successful contracts.
• Negotiation and Bargaining: Involving management to reach a compromise on price and terms of the deal.

Each of these stages can take time, so it is important to monitor the process and maintain regular communication with the client, using CRM systems to enhance the sales department's efficiency.

B2B Sales Techniques

B2B sales require managers to be actively involved and highly responsible. Let's look at some effective techniques used to attract clients:

• Presentation: It is important to clarify the client's needs before presenting the product to fully address their requests.
• Client-Centered Sales: Identifying the client's problems and needs, offering tailored solutions.
• Expert Sales: Demonstrating the company's status through participation in conferences and publishing useful content.

For successful business operations in the B2B market, it is important to combine various techniques, adapting them to the specific needs of clients, as well as training managers in active listening and effective presentation.

Specifics of B2B Market Promotion

Promotion in B2B has its own characteristics that distinguish it from B2C:

• Event Activities: Participation in exhibitions and conferences to showcase products and find partners.
• Contextual Advertising: Using targeted advertising to attract the attention of decision-makers.
• Sales Representatives: Direct interaction with clients and personal product presentations.
• Websites and Landing Pages: Official pages for showcasing products and collecting client contacts.
• Email Marketing: Reminders about the company and promotions, strengthening audience loyalty.
• Telemarketing: Cold calls to find new clients and partners.
• Commercial Tenders: Submitting bids for large orders and competing for contracts.