E-business analyst Arthur Sculley states that "the Internet changes everything for B2B" and that "most corporations will have to invent themselves to remain competitive in the New Economy" . The power of B2B marketing is that it allows a manufacturer to reduce costs, and more importantly, manipulates information from all sectors along the chain to exploit growth opportunities .
B2B marketing serves as electronic hubs (e-hubs), bringing together suppliers and purchasers in common virtual environments. E-hubs can be defined as websites where industrial products and services can be bought from a wide range of suppliers . It supports the transactions between organisations and helps organisations to avoid the traditional intermediary; thus, retain a higher profit. This enables smaller and flexible firms to rely on their partner-companies for component supplies and product distribution, etc. in order to satisfy their customers more effectively. This includes all the trading steps such as online marketing, ordering, payment and support for delivery.
It should also include the electronic provision of services, such as online advice, customer support and after-sales support .
In this essay, we will be discussing why firms choose B2B marketing, how the Internet can be a marketing tool for business-to-business marketers in terms of distribution and promotional tools and how the Internet will impact the thought and practice of B2B marketing.
Why firms choose B2B marketing?
Using B2B marketing is to achieve efficiency in communicating the needs of the manufacturers' production lines to the suppliers of component parts. Electronic trading is expected to bring about a number of benefits to industries, including improved manufacturing supply chain, increased productivity, improved product quality, enhanced customer service, and a movement towards lower inventory requirements as manufacturers moved towards just-in-time production . With the introduction of the Internet, companies, regardless of size, can communicate with...