Monday, June 27, 2016

Advantages & Disadvantages of B2B



The business-to-business operation is a company that sells products or services to other companies, in contrast to the consumer. Compared to the retailer or direct-to-consumer business, B2B has a several strengths and weaknesses, which you must accept before starting or investing in one.

Market Predictability and Stability

B2B markets are more predictable and stable. While consumer confidence quickly up and down, B2B sector, usually develop gradually. After providing the relationship with its customers, its ability to supply them can last at least a year or more. In fact, B2B buyers typically sign contracts with suppliers to ensure that prices and conditions. These contracts allow you to plan revenue budgets with accuracy.

More Customer Loyalty

The evolution of the management of the supply chain and collaborative thinking on distribution channels contributes to the high level of customer loyalty. After establishing a relationship with a customer and proved its reliability as a supplier, it is typical to have a permanent commitment. B2B 
buyers can not afford to be as fickle as consumers. It is expensive and time consuming for customers of the company to make significant providers of products or services changes. Companies and their customers rely on the consistency of product quality, reliability, service and value. While you 
take care of your responsibilities, loyalty is a B2B strength.

Smaller Customer Pool

The number of potential buyers in the B2B market is much lower than in the ordinary consumer market. You sell to business that then sell to customers. If you make niche products or offer specialized services to small industry, you can only have 10 to 20 customers in a particular geographic area. Even if your products or services, have a wider appeal among businesses, companies pool is reduced, since many of them created by network providers. You not only have to go after unattached buyers, but you need to steal customers away from generating sufficient revenue to survive.

Marketing Challenges

B2B companies face significant marketing challenges relative to B2C peers. Digital marketing is a especially challenging. While B2B companies rely heavily on content marketing and social media to attract Internet users, B2B businesses are much more difficult. B2C social media is used to attract 
consumers. How to interact with B2B Internet users and the social media is more complex. Therefore, Myanmar B2B providers must plan carefully and invest in the quality staff or third parties to benefit from these digital tools.