Saturday, August 4, 2012

Business to Business

Business to Business is also referred to as B2B; It is a term that describes commerce transactions that are solely between business and not consumers. An example of this would be a transaction between a wholesaler and a manufacturer or a retailer and a wholesaler. There are two other contrasting terms, B2G (Business to Government) and B2C (Business to Consumer).

As a comparison between B2B and B2C the actually volume of sales is much higher in Business to Business, the main reason for this is business transactions in a typical supply chain tend to involve raw materials or sub components and a consumer transaction tends to be one item (the end product). An example of this would be a car manufacturer... the business transactions would involve the sale of all of the parts, where as the consumer transaction would be the finished product (one single transaction, the car itself).

The term B2B was coined originally to describe electronic communications between enterprises or businesses in order to distinguish it from consumer communication.

This was eventually picked up and used in marketing and now it is used all over the world to describe services and products used by enterprises.

However even though most marketing and sales people work in Business to Business a lot of trade publications and professional institutions focus a lot more on the Business to Consumer side.

If you are looking for these services there are a lot of companies out there that offer them, be sure to look around and find the company that best suits your needs.

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