B2B stands for business-to-business. This refers to a business relationship that an entrepreneur (e.g. a manufacturer, retailer or service provider) has with another entrepreneur. The functionality and trends that are set for business-to-business online marketing are decisive. Business-to-business differs from B2C.

What characterises B2B?

Business-to-business describes the business relationship that one entrepreneur has with another entrepreneur or several entrepreneurs. As there is no company that does not benefit from another company, practically every company has several business-to-business relationships. The term was coined in e-commerce. Business relationships refer to all business areas. If a manufacturer buys goods from a supplier, this is just as much business-to-business as the services of a tax consultant that a commercial limited liability company utilises for itself. The use of marketing services for which a service provider is commissioned is also business-to-business.

ExampleA

computer manufacturer sells the laptops that it produces itself. It purchases the parts from a chip manufacturer. The computer manufacturer and the chip manufacturer have a business relationship that can be described as business-to-business. Similarly, if a nail salon uses the services of the local electricity provider, this is a business-to-business relationship.

Business-to-business: How does it work?

Business-to-business does not depend on a company having many business relationships. The focus of a company is to build a partnership that develops over the long term. Values such as reliability and trust play a major role in this. Companies that repeatedly fall behind with their payments or fail to honour agreed deadlines when delivering goods cannot expect to build long-term business relationships. A company should therefore pay particular attention to the business-to-business sector and provide corporate customers with the necessary support - including specialist advice, for example.

The advantage of business-to-business lies in the fact that corporate customers generally purchase larger quantities than private consumers. It is characterised by the fact that prices are not fixed, but are agreed individually between two contractual partners. For example, a commercial customer benefits from The customer benefits from being granted discounts or other price reductions.

What needs to be considered in B2B online marketing?

Digitalisation in the corporate world means that B2B also plays a significant role in online marketing. In particular, inbound marketing, outbound marketing and account-based marketing should be considered here.

With inbound marketing, the advertising company aims to support commercial buyers in the selection of products and the other phases of the purchasing process. This also includes, for example, offering several payment methods.

In outbound marketing, customers are made aware of the products or services with enticing offers. For example the advertising newsletter with banner advertising or a telephone enquiry to the customer.

Account-based marketing is not aimed at a larger target group. The focus is on smaller groups or only individual entrepreneurs who are addressed directly.

Other aspects that need to be taken into account in online marketing are the appearance and behaviour on social media channels. Many companies use these opportunities to pursue their business interests together. It is also worth being active on social media channels in the context of business-to-business in order to find specialist staff and qualified employees for your own company.

Differentiation: B2B and B2C

In business-to-business, business relationships exist exclusively with corporate customers. The situation is different in B2C. Here, a company maintains relationships with private customers without exception. These relationships relate to the sale of products or the provision of a service. In addition, business-to-business differs from B2C in the following ways:

The market size of business-to-business refers to a niche market. In B2C advertising campaigns, the advertising company aims to reach a large target group.

Sales staff are generally used for advertising campaigns in the business-to-business sector. Advertising in the B2C sector uses online marketing and traditional methods to convince customers of the benefits of a product or service.

In the business-to-business sector, the approach to the customer is much more serious and earnest than in the B2C sector. There is often a relaxed tone here.

There is one important point to note with regard to the treatment of VAT : In a business-to-business relationship, VAT is a transitory item. The supplier invoices it, the recipient and payer can have the input tax refunded by the tax office. The private customer is the one who is ultimately charged VAT. They cannot claim an input tax deduction.