Business to business marketing, or “B to B marketing” as it is sometimes referred to in the business sector, is the term used to refer to the marketing of either products or services to other companies or other businesses within the industry. The idea behind this element of marketing is to develop and promote products in a way that is beneficial to both parties. The practice of Business to business marketing occurs more often than you may be aware. Some companies manufacture products and sell them directly, but most companies at least sell to distributors who then sell their products as retail. This is the most common form of business to business marketing that occurs within industries. However, just as important is the strategy of marketing a product directly to another business for their personal use. The key to succeeding in either of these steps of marketing is truly presenting an offer that is attractive to both you and the other business.
When a company manufactures a new product, decisions must be made regarding how to market the product within that industry. Unless the company plans to sell only directly to consumers through a website or store, the manufacturer must find a distributor who is willing to buy the products and sell them. These operations within an industry are a form of business to business marketing. In order to do this effectively, the manufacturer must produce a quality product that consumers are willing to buy as well as present a clear picture of the advantages that carrying their product will give to a distributor. Most distributors will not be willing to purchase and sell a product for retail without some proof from the manufacturer that the product is popular among consumers. Finding distributors is a time consuming process for manufacturers. Research must be conducted regarding the demographic of customers who frequently shop at the location and their likelihood of buying the product. Making the right decision in finding distributors is important to both the retail distributors and the manufacturers. If a poor decision is made, the manufacturer is also affected since time was spent on a business relationship that may not prove to be fruitful, and products were not placed in locations where they could be sold.
Marketing between different businesses is the less common version of business to business marketing, although this strategy is being used more frequently today than in the past. In some ways, this is similar to marketing to consumers, because the business is the consumer. However, there are some important differences between selling directly to another business and marketing to consumers. When marketing to consumers, the manufacturer typically advertises a general product and attempts to attract the attention of consumers, waiting for those who are interested to make contact. When marketing directly to a business, however, the burden lies with the manufacturer to present a case to the business manager, proving why the product will be beneficial. The practice of developing products directly by use for other businesses rather than the general public is becoming increasingly common.
businesses that consider business to business financing comes in all shapes and sizes! The reality is that you can set up a facility to finance 15k a month or you can set up a facility for tens of millions of dollars. Larger facilities come with improved rates, as well as a day to day business model that you will find more accommodating.
So what about that cost of factoring – There isn’t a day when we aren’t debating that issue with customers. the cost of business to business financing and financial factoring ranges from 1-3% a month on balance – yet don’t forget we’ve shown you how to potentially cut that cost in half when you utilize the cash flow generated in a positive manner.
As a business owner, if we had asked you these questions yesterday “Where will your cash flow be 6 months from now? what would have been your answer . We’re betting that you would say that you just don’t know the answer to that one – however if with accounts receivable financing you can now say with surety that if you will have sales you will have cash flow! Simple as that.
Speak to a trusted, credible and experienced business financing adviser on the merits of factoring and the business to business financing model . Whats in it for you? Peace of mind and cash flow predictability… that’s all