B2B MARKETING

B2B Marketing

B2B Marketing

Introduction

E-commerce is the exchange of digitized information within and across organizations relating to communications, electronic ordering, and management of product and service activities. Distinctively in e-commerce, technology operates simultaneously as the tool that automates business transactions and workflows and as an organization's additional touch point or primary/sole interface with its customers. Ecommerce signifies business activity and financial and commercial transactions carried out over the Internet and an ever increasing array of other technology devices.

Conceptual Overview

E-commerce business models are based on business being conducted 24 hours a day, 7 days a week. At the core of e-commerce is the technology required to operate it. In all business organizations, technology provides a functional supporting role. By contrast, e-commerce is not just the application of technology to an organization or a marketing issue but a strategic business model with a complex embedded information system. It is a system that integrates the internal management of an organization's activities in tandem with establishing the required interactive access with customers, business partners, and suppliers to facilitate real-time gathering and organizationwide generation and application of customer intelligence. Information gathered on clients can then be used to foster long-term customer management and value, adding to an organization's offerings.

In e-commerce, customer focus changes to the demand side rather than supply. Clients have a potential role in the development of enhancements to products and services through provision of feedback. This is seen as an opportunity to strengthen customer and business relations.

Capability for ongoing assessment of organizational performance is also enhanced through integrated information exchange, enabling better analysis of competitors and relevant market forces so that adjustments to strategy, efficiencies in processes, streamlining of the value chain, reconciling off-line and online channels, and cost reductions can be applied. For example, reusable online product information and advice can be provided very cost effectively so that self-service options replace skilled retailers.

True market orientation is dependent on organizational learning, and learning is advanced through versatile information and business exchanges across departments, business units, product groups, or geographically dispersed company divisions. This is vital as low market entry barriers mean that competitive advantage is sustainable only if it can counter competitor duplication by a strategic focus imbued throughout the organization to capitalize on an organization's strengths. For instance, Web sites are easily duplicated, and it is the value added to client offerings that will counter customers clicking to a competitor site.

B2B Marketing

By 2004, that number is expected to grow to 49 million households spending an average of $3,738 each (cited by the Institute for Policy Information, n.d.). The internet business owner needs to be able to determine the best and most effective manner to reach desired customers. To do so, requires that the business establish to whom it is selling to. Different marketing strategies are utilized for different target markets. For instance will it sell directly to consumers or to other businesses? The business will also need to establish the most efficient and effective means to promote itself in a virtual ...