Business to Business - Helps in Generating Leads

Business to Business commerce is business purchases between commercial entities as an in-between means of value addition before the product is brought to the consumer. One aspect of Business to Business markets which can be distinctive from Business to Consumer markets is that there are typically fewer customers, making the existence of suppliers well known. This signifies that B2C approaches of promoting and advertising, such as for example banner advertising or listing in search engines becomes less essential for B2B markets. Also, the existence of larger buyers is likely to show that each is of great value to the supplier. The supplier therefore needs to understand the buyer's needs on the internet site and will put effort into developing the Web-based content and services necessary to supply these services. You can find three main types of organisational markets odyssey, industrial, reseller, and government. It is important to know the underlying differences with regards to the goods and services involved. -Industrial markets - Industrial company web sites can be used to provide buyers with a high level of specific product information. To provide potential and existing clients with information, each manufacturer will publish information about new contracts, new products and testimonials from existing customers. The web provides a way of finding such information more rapidly and tends to give greater depth of information than other sources. -Reseller Markets - Organisations in these markets buy products and services to be able to resell them. A reseller, who is selling products from many companies, might have sufficient aggregated demand (through selling products for other companies) to justify the expenditure of establishing online sales. Producer might also not have the infrastructure to fulfil orders direct to customers without further investment, whereas the reseller is likely to be put up for this already. -Government markets - These consists out of government agencies and bodies that buy goods and services that are required to hold out specific functions and provide particular services. Often, government purchasing requirements exceed those of large private commercial organisations. Business to Business markets is basically different than Business to Consumer markets. Typically, margins in B2B transactions are much narrower with much larger volumes. While brand in the anonymous international world of the Internet is becoming essential in B2C markets as a product differentiator, B2B is of a different nature. B2B buyers, all the time, are professional purchasing agents and have substantive competency and resources to dedicate to product selection. Consequently, while still important in the B2B arena, brand is less of an issue than in the B2C domain. Business to Business Markets can be classified as vertical and horizontal markets. Vertical markets focus on a single industry and provide an environment for not merely transactions but for job postings, industry news, technical advice, and other information services. Horizontal markets offer one kind of service or product across industries, benefiting form less industry specialisation and more economies of scale.