Wednesday, October 31, 2012

week 4 EOC : business to business marketing

                       What Is B2B Marketing? What Are Business-To-Business Markets?

        As always, we must be clear about our definitions. What are business-to-business markets and what is B2B marketing? To answer these questions it is useful to consider the value chain that starts with a consumer demand and from which dozens of business products or services are required. Take the example of the simple shirts that we buy. They do not arrive in the shops by accident. There is a value chain of enormous complexity that begins with cotton or some other fiber that must then be woven into cloth, which in turn is machined into a garment, packed and distributed through various levels until finally we pick it from the shelf. This is illustrated in the diagram below. We call this the chain of derived demand since everything to the left hand of the shirt is pulled through as a result of the demand for the product. Businesses sell cotton to merchants who sell it to spinners who sell it to weavers who sell it to garment makers and so on. None of the businesses buy the products for pure indulgence. They buy them with the ultimate aim of adding value in order that they can move the products down the chain until they finally reach us, the general public. B2B marketing is therefore about meeting the needs of other businesses, though ultimately the demand for the products made by these businesses is likely to be driven by consumers in their homes.

 http://www.b2binternational.com/publications/white-papers/b2b-marketing/

    just to create a paperclip or even a new pencil, requires a business,to do business,with other business. there is a long, throughout process that is required between two or more companies to start the process of making a product. let's start with the raw material, a type of metal that is decently strong, yet flexible. that material has to come from a company that makes a type of metal for your needs. now their is the company that can make the machine that can bend, cut and produce hundreds or even thousands of your product for the masses. now, you have to find a company to sell your product for you, and it has to be a specific type of company that specialize in your product. it's like this, your selling paperclips to the masses, so your best bet is an office supply store, you won't get the same results or profit in a toy store or sporting good store. but the process in making your product is still a process. you actually have to make a deal with the company that is going to supply your material; so if you buy quantity and quality, a deal on price must be made. it's a good idea to check with their competition. it's important to create a different style of paper clip, for example, your competition is already make the same product but why would the buying public buy your product? make it different, change the shape, add colors to the product, even make it safer with some type of rubber coating on the product. back up your product by giving your customers a great service.

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