Business to Business Marketing

The Business to Business Market Business to Business Marketing: Organizations marketing goods and services to other organizations Marketing from one organization to another is different from marketing to a consumer, marketers must adapt differently Business to Business Marketing is categorized under the following components Business and Industry Governments Institutions Wholesalers and Retailers Proffesions

BUSINESS AND INDUSTRY While Canada’s growth has traditionally been in marketing, this trend has changed in the last half of the 20th century as the service industry has grown Service industry is currently responsible for 68% of economic production while goods producers are responsible for the remaining 32% Among service industries the largest in terms of size are financial services, wholesale and retail, healthcare, social assistance, and public administration Manufacturing is responsible for half of the goods producing sector Other goods producers include agriculture, mining, utilities, and constructions

BUSINESS AND INDUSTRY The growth in the service industry is a reflection of strong investment in industries such as trade, finance, and business services This trend has continued to grow as Canadians have moved towards outsourcing (Defined as hiring or contracting other companies to do which was once done in house) Example: Photocopying Traditionally most companies have bought a large photocopier and one all their own copying in house Xerox and other companies have begun to offer services which allow them to do their photocopying for them for a fee Other services following this lead include payroll, advertising, logistics, and legal services

GOVERNMENT Collectively, the federal, provincial, and municipal governments form Canada’s largest buying group Government contracting services are advertised online through the Government Electric Tendering Services (GETS) GETS is an outsourced operation provided by Mediagrif Interactive Technologies (MERX) About $5 Billion are advertised annually on this system

Wholesalers and Retailers Businesses use wholesalers and retailers to sell their products Typically a wholesaler will buy a finished product, hold them in a warehouse, and sell them to retailers It is typical for big brands (Kraft, General Mills, or Protector and Gamble) to have a sales plan and market to large wholesalers (Loblaws or Sobeys) at the beginning of every year At the same time, wholesalers are making agreements with the retailers and marketing towards them. The retailer than markets towards the consumer

Professions Professionals are another big group that must buy from other businesses Professionals include doctors, lawyers, accountants, architects, engineers, and so on While these jobs are similar it is important that they are marketed to individually as they all make up a large sum of business to business transactions