HEWLETT-PACKARD COMPANY

B2B marketing
environment: An
analysis
The UK market in Europe
Name
[Pick the date]

B2B marketing environment: An analysis

 B2B marketing environment: An analysis

Introduction

In this essay researcher will explore the major trends of business to business (B2B)

electronic commerce industry and the opportunities and challenges in the UK market

in Europe are facing now and in the near future.

The paper also emphases on the role internet has played in the last few years and the

development of e-commerce mainly B2B marketing. Furthermore, opportunities and

challenges for UK market in Europe who deal with this category of business has been

analysed based on the strategic contexts such as Porter's Five Forces and swot

analysis. It is then followed by a conclusion.

Major trends in the B2B marketing environment

The rise in internet use means that marketing on the internet has also expanded

popularity as businesses and consumers turn towards the internet to explore basic

information from anything of interest to personal or business needs as well as have the

competence to buy those goods from the suitability of their office or home (Timmers,

1999). From the business vision, this means firms need to pay exceptional

thoughtfulness to their website, as it characterizes the firm in cyber space. Internet has

been one of the key elements to transform business. It has transformed the world into

a huge and single global market. online commerce or Business to business electronic

commerce or e-biz is a sort of service, which is being delivered by two or more

businesses via the internet, allowing customers to carry out transactions for services

and goods online or taken place directly between the sellers and buyers (Laudon and

Laudon 2000). The rate of growth in B2B E-commerce has been fabulous, as many

businesses are adapting to this type of business quickly. It has become a requirement

1
 B2B marketing environment: An analysis

for the corporations to use B2B E-commerce in order to continue competitive and be

in advance of other businesses in today's digital economy. Business-to-business (B2B)

e-commerce has been known as a means of growing the admission of companies,

mainly smaller firms, to global markets (Nimetz, 2006).

There has been a rise in B2B E-commerce, as the use of internet is extensively used

all over the world. As a consequence it has come to be easier for firms to conduct

business and to present their products over the internet more efficiently as well as

through richer ways of cooperating with the customers (Nimetz, 2006). B2B e-

commerce has also showed to be a foremost factor to eliminate the middleman by

producing lower costs, compelling the companies to be a part of the businesses which

are taken place via internet.

The degree of information obtainable on their site, search ability, user friendly links,

and how fast the website loads, are also significant factors. These factors are reliant

on on the target market of the firm, whether they are involved in B2B (business-to-

business) or B2C (business-to-consumer) marketing. B2B customers are more

apprehended with the practical aspect of the product, the customer services and the

warranty provided (Nimetz, 2006).

Types of Online Marketing Before being detailed about what B2B marketing should

preferably target, it is important to discuss the common types that a marketing site

should have. Meaningful that a company is characterized by one site should give all

the appropriate material to the target market in a way which is easily accessible. E-

information placements naturally fall into these five categories, according to Etzel et

al, 2004): General Information and Company Background: This category covers the

mission and vision of the company, its history, its mission, general orientation,

corporate philosophy, financial investor related information, the structure of the

2
 B2B marketing environment: An analysis

company, profile of the management team and the operations and global/local

divisions and branches. This portion is typically accessible to everyone and requests

to be accessible clearly to both categories of business consumers and individual

customers (Etzel et al, 2004).

Present Business Operations: This category provides to the firm’s customers. This is

where partition of any type may come in. This section provides the dealer contact

information, customer product descriptions, payment terms and structure. For the

business associates, this may reflect more practical details, how to contact the relevant

business employees, and the diverse packages existing. Since the firm needs to know

about its prospective customers, and particular of the material in this section may be

private, access may be limited by requiring the users to register and give their email

address, which lets them to be updated with the firm’s up-to-date news if they choose

that possibility. This is a place where there is a two-way communication open,

negligible though it may be, and firms should emphases’ on those features which are

valued by their target market.

Links: This category has influences to other connected sites. This is important for

B2B customers who may wish to communicate with a dealer near their place of

commerce, or to get more data.

For B2B sites, it is more significant to be uncluttered, present the information in a

style that is easy-to-read, understand should be easy to navigate and the site itself

(Nimetz, 2006).

Contact Point: This offers an email address for guests, to make a queries or

observation and should also make available a phone number. This is an occasion to

co-operate directly with the firm and is one main benefit of the internet over old-

3
 B2B marketing environment: An analysis

fashioned media. This should be paid attention to, as unanswered queries affect the

company’s business.

B2B Online Marketing: B2B sites precisely provide to corporate clients. This

indicates that the decision making practice is time-consuming for company and the

customers should accommodate to that. The services provided are regarding

maintenance software or in-house services or related services to raise the productivity

and profitability of the company.

The features of B2B sites include a challenge to systematize the trading practice on

the website. This is more suitable, saves money as well as time.

The firm should try to distinguish itself from the rivalry by promoting and using its

USP (unique selling proposition) which can be done both offline as well as online

using old-style methods of tradeshows, publicity and field sales. By programing the

supply chain and the procedures as much as possible, the firm is saving costs, hence

letting it to contest on a price basis as well. Preferably, B2B sites should also have a

registration possibility for business customers who may desire to learn more. By

registering themselves on their website, it permits for further two-way communication

and human intervention which is important in business (Nimetz, 2006).

Though B2B sites transactions, consumers are usually allowed online and in a

position to buy directly, as they take less time than trades for a final decision. This is

since B2B consumers are more analytical in addition to seek more information from

diverse source and channels.

"To encounter the challenge of globalization of e-business, firms require an efficient

and effective endwise procedure that come across the business's basic to sell and buy

products in efficient and the most economical manner".

4
 B2B marketing environment: An analysis

Opportunities

What are the key challenges and opportunities to business interested B2B E-

marketing? While carrying out a B2B E-Commerce activity, the emphasis of the

company generally is basically enabling sales transactions among the businesses. For

example, the majority of Dell's UK virtual orders are by means of detail to corporate

clients, since they have fair idea on the price they are willing to spend and as they

know the product very well. By implementing this approach of business, Dell UK has

reduced their carrying and storage costs in addition to the consumers on the further

prices charged by retailers and wholesalers.

By implementing B2B e-commerce, it is easier for the firms to be able to manage

their customer queries and problems by having an overall queries form and feedback

form on their website, which would assist the customers to write in their problems. As

soon as a form is received the firm can get back to customer straightaway. This is an

enhanced and better approach of answering inquiries rather than waiting for annoying

the customers and appointment dates. For example of one firm who have been

prosperous in sustaining their customers are FedEx UK. Order tracking is a big part of

FedEx's customer satisfaction component.

Using B2B marketing technologies, companies tend to use their raw materials and

resources more effectively elsewhere and use less working capital. Improved

competences mean reduced costs which mean the use of the free funds elsewhere,

either for starting new business or improving the business strategy or for personal use.

5
 B2B marketing environment: An analysis

However, online corporations can be useful for large and small companies. The small

companies can gain better marketing strategies and competitive advantage while

associating with large companies, and large companies this turn can gain entry into

the local needs of the marketplace in depth as small companies have the advantage of

sympathetic the local needs better than the large companies. For example,

Amazon.com pays its website associates a commission on articles bought by

customers whom the associates send to Amazon.

We have debated briefly the opportunities of B2B business. The next one will be the
competitive advantages of B2B marketing.

Competitive advantages

Competitive advantage is when a company makes profits that go above the average

profit of the company (Porter, 2001). B2B marketing typically sells their products to

company that, in turn, create additional goods for sales further down the value chain.

Does competitive advantage lie in product competition, price competition, or does it

proceeds value marketing a package of services increasing the product to gain the

business?

B2B e-commerce can be based on secondary and primary customers. These categories

of consumers can either buy on non-price or on price basis (Nimetz, 2006). Hence, if

they buy on price influences then it is recommended for the firm to bring down their

costs, and if mutually the consumers buy it on the basis of non-price influence then

competitive advantage be influenced by on building interactions all through the value

chain, highlighting service, the contributions of the processes, product improvements

and systems to customers' business success.

6
 B2B marketing environment: An analysis

One of the main benefits of B2B e- marketing is that it is see-through, sense that

everyone knows and can see what everyone else is doing (Timmers, 1999). Customers

can easily compare among firms to find out if they are receiving the best availability,

best price or not, the best product and the best service. It also means that customers

will no longer have to depend on on local sellers, since they can search internationally

and nationally to look at the items they need. This transparency means that as sellers

search for more customers and square off against global and national competitors,

they will turn into more dedicated to gain a competitive advantage.

Product differentiation is more and more flattering a significant foundation of

competitive advantage (Porter, 2001). Big brand name, Retailers Company’s in small

global customers play very significant role in product expansion but have no or little

ownership of developed facilities which hints to difficult exchanges among the

customers and retailers. Technological change is a strategic challenge for a business

in terms of given that satisfactory confidence to their e-business (Laudon and Laudon

2000), according to the changes in the buying behaviour’s of the consumers and also

bring up to date their business with the technological change and also.

Moreover, one of the greatest ways to overcome a competitor is to have a good

standing within other business firms and the society (Nimetz, 2006; Porter, 2001).

Good reputation allows the extensive news of the firm's e-business inside other

members of the society. One example is of Marshall Industries, who perform as

reseller online. The firm takes the ownership of products which forms a foundation

for the buyers' self-assurance almost both redress and quality (Timmers, 1999). The

issues of quality, product description, and delivery are addressed not only by the

7
 B2B marketing environment: An analysis

reseller's role in holding inventory or technical norms, nonetheless also by the

standings of the large firms that manufacture them.

Pefa.com (Pan-European Fish Auctions) is a firm which is selling fish products, as

well as the auctioning of fresh sea fish. Its virtual fish auctions bring together retailers

at many ports in Northern Europe with purchasers from across Europe (Turban,

2000). However, Fresh fish poses some experiments for B2B e-commerce (Business

to business e-commerce and entry to worldwide markets: exclusive or inclusive

outcomes?

Conclusion

Firms should understand that not all visitors may buy from their website; conversely,

most of them will be investigating the firm’s information and products available will

be an important element in the final decision. In B2B, competition on a worldwide

basis confirms that the firms no longer can disregard online marketing and it is

essential to hold onto up with the competition. Creativities such as just- in -time (JIT)

inventory and Electronic Data Interchange (EDI) are shifting the way business is

being done. This jointed with Customer Relationship Management (CRM) to ensure

that the way firms do business with other businesses has improved and firm need to

use original ways to make their presence touched online (Furlong, 2001).

8
 B2B marketing environment: An analysis

References

Etzel, M. J., Walker, B. J. & Stanton, W. J. (2004). ‘Marketing’. International Edition:

Mc-Graw Hill Irwin.

Furlong, B. (2001). ‘How the Internet is Transforming B2B Marketing’. [Online] at:

URL:http:www.marketingpower.com/content1483.php

Laudon and Laudon (2000) ‘Management Information Systems: new approaches to

organisation and technology’, 6th edition, Prentice-Hall, (Chapter 10).

Nimetz, J. (2006). ‘B2B Online Marketing: Dealing with Increasing Amounts of

Competition’. [Online] at:

URL:http:www.searchengineguide.com/nimetz/008765.html [Accessed 22nd January

2011].

Porter, M. (2001) ‘Strategy and the Internet’. Harvard Business Review. March 2001

Timmers, P. (1999) ‘Electronic Commerce: strategies and models for business-to-

business trading’. Wiley.

Turban, E. (2000) ‘Electronic Commerce: a managerial perspective’. Prentice-Hall.