What is B2B (Topbartercard)?
B2B
is the short form that is used for Business to Business. Most of the electronic
commerce today is of this type. It includes the Inter Organizational System
(IOS) transactions and electronic market transactions between organizations.
B2B implies that both the seller and the buyers are business corporations;
while business-to-business electronic commerce implies that the buyers are
individual consumers. Business to business EC covers a broad spectrum of
application that enables an enterprise or business to form electronic
relationship with their distributors, resellers, suppliers and other partners.
By
using B2B EC, business can reengineer their supply chain and partnership. B2B
will offer access to following types of information.
•
Product – price, sales history etc.
•
Customers – sales history and forecast.
•
Suppliers - Product line and lead-time, sales terms and conditions.
•
Product process – capacity, product plan.
•
Competitors – market share, product offerings.
•
Sales and marketing – promotions.
•
Supply chain process – quality, delivery time etc.
The
following are the ways in the world that are being adopted with the help of B2B
EC.
Electronic Marketing
B2B
platform can be used to sell the company’s product and services to business
customers on the Internet. This model can be called seller oriented marketing
because customers visit the web site that the supplier has prepared. Certain
group’s items, such as industrial equipment are purchased only by businesses.
Procurement Management
From
the purchasing company’s point of view, B2B is a medium of facilitating
procurement management such as reduced prices and reduced cycle time. To
implement B2B from the procurement management point of view the buyer-oriented
market place can be used where the buyer announces the RFQ to the potential
suppliers for competitive purchasing. To the suppliers, participating to the
customers oriented marketplace and winning the bid is the major concern.
Electronic intermediaries
Individual
consumers and business purchases a group of items such as books, stationery and
personal computers, in such cases the consumers and business buyers can share
the intermediary. Certain items such as industrial equipments and parts are
purchases only by business. Since the purchasing party is a business who has to
deal with many suppliers and intermediaries, an integrated and tailored buyer’s
directory linked suppliers and intermediaries is needed.
Just in time
JIT
delivery of parts to manufacturing buyers is crucial to realize JIT
manufacturing. Direct marketing requires an internal JIT manufacturing system;
the JIT delivery and advanced confirmation of supplier’s inventory are
essential elements for B2B.
Electronic Data Interchange
EDI
is the electronic exchange of specially formatted standard business documents
such as orders, bills approval of credit, shipping details and confirmation
sent between business partners. The EDI translator is necessary to convert the
proprietary data into standard format. Internet based EDI is an important
technology for B2B EC.
Advantages of B2B
Ø
Its is cost reduction technique for the company so as to overcome mediator
Ø
With advancement in technology B2B can be done with the help of Electronic
commerce.
Ø
With the help of online auction the buyer of industrial goods can get the
product at a cheap deal, as there are many competitors in an online auction.
Ø
With E-Com electronic funds transfer-using EDI can be done between to
organizations.
Ø
B2B helps in lowering the cost for selling and marketing.
Ø
It also shortens the selling cycle.
Ø
The most important advantage of B2B is to have JIT just in time delivery, the
company can have the track of good as to which place it has reached with the
help of electronic commerce.
Transactions
conducted through the internet between one business to another is called
Business 2 Business. This type of business is carried out only through the
internet. This business covers all types of organizations, right from
auctioneers to business solution providers. This also includes
business-business shopping and sales as well as provision of various services.
With the advancement of technology with each and everyday, business
transactions are carried out more easily and effectively as well as in a faster
and efficient way.
Paper
has been replaced by technology which makes the process easier and faster. In
the United States of America alone, business to business has generated revenue
of more than 7 trillion. Speed and Efficiency is very important in today’s
competitive world, no matter what kind of businesses organizations conduct, and
business to business has proven to be a big success because of the speed and
efficiency. Businesses act with more speed and efficiency satisfying their
customers which has proved to be an integral part of today’s B2B business.
Moreover the growing resources of online services are helping business grow
faster in every possible business area.
Some
of the popular digital services offered are the news services, direct mail
marketing, HR development and training. Due to the variations in the markets
and business it is hard to estimate an accurate market size figure, but there’s
absolutely no doubt that B2B is growing very rapidly and is the future trend of
conducting business. In every possible way e-business should mask the value of
the products sold to its customers. The biggest advantage which this kind of
business over the other conventional businesses is the Just In Time delivery.
The delivery of the products can be traced very easily and effectively thus
satisfying both the Client and the Vendor. Prompt delivery satisfies not only
the business but also ensures instant profits, thus making the transaction a
successful one.
What Are the Advantages of B2B & B2C to Conduct Business Using the Internet?
While
business-to-business and business-to-consumer Internet marketing strategies are
two different animals, in that one model targets businesses and the other
consumers, the benefits that B2B and B2C provide to marketers are about the
same. In short, both models help businesses increase sales in an increasingly
competitive marketplace. In 2012, in the United States the number of potential
Internet buyers in this increasingly competitive marketplace reached a new
peak: 245 million potential buyers online.
Increased Awareness
With over six
billion Internet users across the world, it's obvious why B2B and B2C Internet
marketing increases awareness of businesses and their products or services.
More than that, with more B2B and B2C companies marketing themselves on the
Internet, marketers are in a better position to pick up details about their
competition. Additionally, with the advent of the social networking explosion,
more business and consumer patrons are voicing their opinions about various
products and services. This gives marketers even more empowering info about
what the market is thinking – knowledge they wouldn't have if they themselves
weren't using the Internet.
Better Interaction
The social
network explosion, in addition to email and website marketing, also gives
marketers the ability to interact more directly with their customers, whether
businesses or consumers. An important part of this interaction is educating
customers, either as a group or as individuals. Marketing strategists at the
firm Customer Paradigm cite business authors Margaret Clark and Carol Pearson,
who say that educated customers will buy more than confused ones. So whether
it's marketing via email, podcasts, a website or social networks, marketers who
are interactive on the Web increase their authority in the marketplace –
another advantage from using the Internet.
Better Service
Better education relates to
better service. In the days of mom-and-pop stores, customer service usually
meant the interaction you got once you walked in the store, when what you
ordered was delivered to your doorstep or when you called via telephone. Now
that more B2B and B2C companies are using the Internet, though, they're
providing marketing websites on which customers can make contact when they have
questions or concerns, and they're sending informative emails that don't merely
advertise but also inform their customers with practical information. This
means that customers, ideally, are getting much more robust service.
Refined Messaging
The Internet has also provided
marketers with more specific information about their customers, such as when
they're more receptive to receiving an advertising message. Armed with this
knowledge, some B2B and B2C companies use a marketing method called
"right-time marketing." According to business analyst firm Garner,
Inc., the statistics are too compelling to ignore: strategically timing email
marketing messages will help marketers see as much as a 600 percent rise in
performance over more lax messaging methods, such as email blasts and cold
calling.
