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B2B

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Contents

Definition

Business-to-business (B2B) stands for relations between enterprises, contrary to relations between enterprises and other groups (e.g. consumers, public administration). The term is today used in marketing however it was established to describe the electronic communication relations between enterprises in order to distinguish it from the communication between enterprises and consumers B2C.

While in former times one spoke primarily of industrial marketing or capital goods marketing, today the term B2B-Marketing is widely used. B2B-Marketing covers all products and services used by enterprises. B2B marketing is considered more complex than B2C marketing because on the buyer´s side, there is often more than one person involved in a B2B sale, the buying center.

B2B: Vertical vs. Horizontal e-Marketplaces

Vertical e-Marketplace

A Vertical e-Marketplace spans vertically up and down every segment of one specific industry. Each level of the industry has access to every other level, which greatly increases collaboration. Buyers and Sellers in the industry are connected to increase operating efficiency, and decrease supply chain costs, inventories, and cycle times. This is possible because buying/selling items to customers in a similar industry standardizes needs, therefore reducing the need for outsourcing many products.

Horizontal e-Marketplace

A Horizontal e-Marketplace connects buyers and sellers across many industries. The most common type of materials traded horizontally across industries are MRO’s (Maintenance, Repair, and Operations materials). These items are so popular because they are crucial to the daily running of a business, no matter what industry (or what level of that industry) you are in. These articles are mainly B and C articles. Many corporations have these bought directly on-line by the maintenance team in order to relieve the purchasing department.


See also

  • C2B consumer-to-business
  • B2A business-to-administration
  • B2E business-to-employee
  • C2C consumer-to-consumer


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