If you are wondering what B2B is in simple terms, we will explain right away that it is a business model when one organization sells its products to other companies. Sales in this case are complex. B2G in sales and the deals are long-term. They often last for months and are accompanied by lengthy discussions.
Businesses of the B2B (business-to-business) model include:
- suppliers of resources from which germany whatsapp data cotton, ore or gas are produced;
- suppliers of component goods, such as flour or screws;
- suppliers of finished products and services, including fabrics, factory machines;
- companies providing outsourcing and consulting services;
- companies that create websites, antiviruses and other programs for legal entities.
Development of a program for other legal entities
In all these cases, the products and services of companies are used by other organizations. For example, Intel supplies Apple with components for the production of smartphones, and then the finished products go to the consumer.
The B2B model is used in the how to plan your social media strategy for better engagement automotive industry. Parts are manufactured by different companies, and car manufacturers buy them to assemble vehicles. . B2G in sales.
B2B also works in the real estate market. Companies that manage real estate or provide cleaning services for industrial buildings work for the benefit of other organizations. B2G in sales not the end consumer.
Characteristics of the B2B model
Long sales cycle
Based onCSO Insights report, 74.6% of B2B sales take at least 4 months, and in 46.4% of cases it takes about 7 months to bring a customer to a purchase. For example, a company needs to automate marketing. The marketing director discusses this with the marketing department specialists to find suitable options. After choosing an automation system, you need to get approval from the finance director. In addition, you may need to consult with the IT director to make sure the purchased program is compatible with the lack data existing ones. Only after all these steps will it be possible to conclude a deal.
Lots of discussions
The more expensive the goods or services are, the more people are involved in the transaction.Gartner information, a purchase can involve 6 to 10 people responsible for decisions in the company.
In the B2B segment, there is such a concept as a “decision maker” (DM). This is a person who makes the final decision on a particular transaction.
The DM can be the purchasing or marketing director, as well as the company owner. B2G in salesIT director, and CEO. In addition, there may be a “person influencing the decision” (PID). Such a person does not voice the final position on the purchase, but helps the DM decide whether it is necessary.
A PID can be anyone, not only an employee of the company, but also a colleague from a related field or even an acquaintance. Most often, a sales manager tries to influence the DM’s position.
However, if the DM does not want or cannot discuss the deal with the manager.
In some companies, the decision on a deal is made not by one person, but by several, for example, responsible employees or the board of directors. Therefore, sometimes, in order to sell a product, a manager must convince several people at once.