(1) B2B: Business-to-business marketing
Most B2B companies don’t consider using TV commercials. It’s more effective to approach businesses directly.
(2) To encourage: To say it’s a good idea to do something.
We encourage our associates to take clients out for dinners and lunches.
(3) End User: The final person that uses the product and doesn’t sell anything else.
Many companies are involved in creating most products, even if the end user only deals with one company.[/box]
1. What is an example of a B2B business?
a. Selling hats to baseball fans
b. Selling hats to a baseball team
c. Selling hats to a government
2. Who is the end user in B2B marketing?
a. The company that adds the most value to the product
b. The company that uses your product
c. The customer’s of the company you sell to
3. Why does Intel make TV commercials?
a. They have no other way of selling microchips
b. They’re using the public to encourage companies to buy their chips
c. They’d like to have a better public image
By Jeremy Schaar
Here’s an interesting question: Even though you’ll never buy a microchip directly from Intel, they run a huge marketing campaign aimed at the public. Why would they do this? The full answer is below, but here’s a hint: it’s all about B2B pull marketing–a concept from last week’s blog post.
Today on the blog, you’ll learn what B2B marketing is. You’ll learn some important vocabulary and one great way to market your product to other businesses.
B2B means Business To Business. Normally when we think of marketing, we think of B2C (Business To Consumer). Here are some examples of each type of business.
B2B: Selling cooking pans to a restaurant, Microsoft selling Windows to a bank for its servers, Samsung selling microchips to Apple
B2C: Selling cooking pans to one person for their home kitchen, Microsoft selling Windows for your home computer, Samsung selling phones to the public
The most important thing to remember in B2B marketing is that the business you’re selling to is not the final user. They’re buying something from you in order to sell something to someone else. Restaurants buy pans so they can make food for people to buy. Banks buy Windows so they can provide better banking for consumers. Apple buys chips from Samsung so they can make better computers, phones, and tablets.
Why is this important? It means that while you’re marketing your product, you need to remember the end user. This goes back to a concept from last week: pull marketing. Pull marketing is when you get someone else to pressure the buyer. An easy example is children getting their parents to buy them toys. You market to the children, not the parents.
In business, a famous example of pull marketing is Intel. Intel makes the microchips that companies use in the computers that they sell. Intel has a great marketing campaign where they encourage consumers to buy computers with Intel chips. So, computers with Intel chips sell better. Computer companies are therefore pressured into buying chips from Intel.
Intel has a great B2B marketing campaign. Behind the scenes, you can be sure that they are pushing companies to buy their chips. But they also let the public know how great Intel chips are. The public then puts pressure on the companies to use Intel chips. Said another way, people pull at companies to buy chips from Intel. Very smart.