B2B sales guide: Definition and features -

B2B sales or business-to-business sales is a form of transaction between businesses. This means that a company or division of a company sells its product/services to corporate clients, i.e. other companies. As a result, something (goods / services) is sold, with the help of which other companies do their business in the B2C market.

What is the difference between B2C and B2B sales?

B2C sales – business to customer – means the sale of goods/services by companies to individuals. Thus, B2C companies are at the forefront of communication with the end consumer, and the B2B segment is always in the middle of the food chain :). That is, in their work, B2B companies should be guided by the needs of other businesses.

B2B sales key features

Goods or services will be the main or auxiliary in production, will become consumables for it and will be fully used,
In the course of use, goods can be subjected to both minor changes in accordance with the company’s goal, and complete modernization / refinement, during which a completely new product appears.
The use of goods and services brings benefits to the company.
Goods and services are not used for the purpose of subsequent resale.

Business-to-business company examples:

Organization engaged in the supply of consumables, spare parts, raw materials and goods for processing for manufacturing companies,
Agencies developing online services for online stores,
An office building where a company can rent space.

There are also examples of companies that can be both B2B and B2C businesses – it all depends on the goals of the client they serve. For example, an ordinary customer can come to a supermarket and buy products for himself (and then this is a B2C model), or maybe an administrator of a small bakery who needs certain goods to make fruit pies (and then it will be B2B). Or, for example, a large construction hypermarket, where both a foreman can be purchased to carry out repairs in someone else’s apartment (B2B), and a married couple who decided to re-paste the wallpaper in their corridor (B2C).

Accordingly, the B2B model will not include companies that:

Sell goods to companies for resale, for example, in the FMCG segment,
Deliver tea and coffee, napkins, paper, etc. to offices.

B2B sales market features

A small number of companies-sellers and companies-buyers compared to the B2C segment, and also, for the same reason, the competition is low.
Unlike the B2C sector, the buyer rarely gives in to emotions when buying a product – practicality and rationality come to the fore: the price-quality ratio of the product, the terms of cooperation – discounts for large volumes of deliveries, forms of delivery, etc.
The decision to buy can be made not by one person, but by several.
The company often allocates a large budget for purchases, which must be spent as efficiently as possible – a product that performs its functions perfectly and at the lowest cost.
B2B customers who buy goods tend to be well versed in it, and often know all the major suppliers. That is why when choosing a company for cooperation, attention is paid not to its advertising on the market, but to how well it has proven itself in work – the client chooses not only the product, but also the relationship and benefit.
One and the same supplier can offer different prices for goods to companies-buyers – depending on the volume of purchases, the term of cooperation, etc. All companies try to make the relationship profitable and partnership, and at the same time long enough.
The demand for goods and services in the B2B segment is often determined by the economic situation in the market.

Business-to-business sales nowadays

The sales cycle in the B2B segment consists of several stages:

Working with a cold base (market research, superficial contacts, identifying potential customers),
First contact (conversation/meeting during which the needs and problems of the client, business situation are identified),
Company presentation (a solution that can help solve problems in the client’s business and bring benefits),
Work with objections (development of doubts and questions of the client),
Signing the contract and closing the deal.

The B2B sales specialist should:

possess the skills of a generalist salesperson and apply their own knowledge in practice,
be able to find an approach to legal entities (which is much more difficult than to individuals),
know the features of the goods and services offered to customers more deeply than is required for retail sales.

Can a company make both B2B and B2C sales?

Of course it can.

Is it possible to draw a parallel between B2C customers and B2B sales?

For the most part, these concepts coincide, but there are differences. Take, for example, the construction market. Half of the goods on them are bought by shabashniks or private traders who provide repair services to other people. That is, an individual buys a product, but in order to use this product in the process of creating another product.

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