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The Major Advantages of Business-to-Business Marketing on the Internet

Buy Custom The Major Advantages of Business-to-Business Marketing on the Internet Essay

Business-to-business marketing is the expansion and promotion of products and services mainly to institutional, governmental, and business markets at the international, national, and local level, rather than extension to the independent trade customers. The means of business-to-business marketing vary from old-style practices such as catalogs, direct mail, magazine and newspaper advertisements, sales promotions, outdoor advertising, radio and television marketing to the comparatively new business system of the Internet. The Internet has transformed it into electronic commerce, which helps suppliers and buyers to find each other easier than via the traditional means of reaching business customers.

Marketing exchanges are a central aspect in any business-to-business activity on the Internet. They are also known as electronic marketplaces, auctions or online trading areas that let companies put their services and goods out for bid on the Internet. Search of dealers can take place online along with transactions of products. Thus, it makes it easy for sellers and buyers all over the world to do business on the Internet.

Unit cost reductions and process cost savings are major advantages of Internet market exchanges. Unit cost savings appear when a company asks for offers from numerous suppliers; the suppliers can see the bidding real time. Process costs consist of handling proposals and quotations, developing supplier relationships, and processing purchase orders. Automated process saves time for people and helps to avoid some errors. Business-to-business marketing on the Internet may create real and long-term supply chain savings. The bidding information can serve as a base for debates about price discount. Moreover, transaction costs are reduced on business-to-business sites. Some experts say that transaction fees can dissolve on the Internet in the future.

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There is no limited visibility on the Internet as in other marketing media. A dynamic electronic marketplace permits its participants to cooperate on purchases and projects, conduct commerce, revise industry new trends, and make decisions within an exchange community.

Reliable business-to-business exchanges store full product catalogs on the site and provide valuable information of rapidly changing business dynamics such as industry news, customer feedback, marketing information and data. Contemporary business-to-business marketing on the Internet continues to develop. It is considered to be a business model of the future as its advantages make the Internet the main vehicle for prospective business-to-business marketing. Companies have the opportunity to work more efficiently with cheaper and faster business processes than in other long-established relationships.

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