AMR Research (2003) in defining the complexity of fulfilling B2B product needs for customized products shows how both processes and software can be used to streamline in-channel product customization.
The bottom line is that business channels, or as they are sometimes called multi-tier distribution channels, vary significantly by industry due to the major differences between customers' requirements and the need for bringing together members of a channel to form a team that can respond effectively to the complex needs of customers. This is pervasive in B2B marketing, selling and servicing scenarios. Several layers of a channel may have varying relationships with the end customers, and therefore bring to the manufacturer insights into specific needs that just one company may not have the bandwidth and ability to respond to. The evolution of solution selling and the trusted advisor is actually leading to more cooperation across the layers of a business channel framework, as the role of trusted advisor becomes critical for the long-term selling to larger customers with more complex organizations and needs. There are many other reasons for channels to have more layers in some industries and less in others, yet the most dominant factor is the complexity of end customers' needs and the corresponding requirement of aligning all available resources to serve and retain the end customer.
Q3: many companies seem to devote more energy to getting new customers than keeping old ones. Please explain why.
In many industries there is a high level of customer churn, or customers continually seeking new alternatives to existing solutions to their problems, and as a result many companies in these industries need to replace existing customers quickly, as attrition of their customer bases happen over time. The costs and time associated with winning a new customer, especially in a B2B environment, is inordinately higher than keeping an existing customer. Customer retention and loyalty studies have indicated that customers leave a company for one of two reasons, either the customer defects from the company or disadopt the new technology according to (Hogan,...
B2B and B2C Commerce Matrix In today's global economy, E-commerce is a dynamic force, encouraging more and more businesses to conduct "business" online. B2B transactions can be a very effective way of bolstering small business, and transforming simple business strategies to complex business partnerships. B2B or business-to-business e-commerce is an efficient and often life-changing move for many small businesses interested in participating in the global market. On the other hand, many businesses
B2B Communication Analysis Communication between business organizations is often taken for granted. The correspondences that pass between corporations, charity groups, non-government agencies, political bodies and small businesses are frequently composed and distributed with little consideration to the manner in which the corresponding company has been represented. However, today, with the increased interdependence of commercial entities coming to define the business world -- especially via web and social media outlets -- verbal,
B2B Supply Chain Differences in B2B and B2C Commerce According to Bamboo web, a popular Internet source of business management information, a supply chain of a company has three main parts. The first is the business' original supply, namely where its raw materials or raw products come from and how these items are procured and supplied to manufactures. The manufacturing component of the supply chain converts these raw materials into finished products
B2B & B2C Ethics Because of the application of Internet, the present society is capable turning the geography to become history by wiping out of geographical barriers in the sphere of information transactions. The tremendous growth of e-business has facilitated economic globalization. Internet commerce has given rise to existence of various kinds of business models. (Business ethics and global marketing client confidentiality statement) Broadly the websites concerned with internet trading has been
The main reason for which this occurs, is, in my opinion, the fact that consumers' choice will influence the computer producers which will have to decide among these two options which one best fits its company's standards, need and customers' expectations. So, it is actually a strategy they use; this way, they are aware of customers' preferences without having to do some serious case studies or big researches on
This can alleviate taking on a supplier who may be very risky and not capable of delivering on orders in time to meet customer orders (Hammermaster, 22). Supply chain management systems, once extensively used in larger businesses, has become pervasive in small businesses to the retailer level as they deliver major gains in profitability over time. B2C Technologies as the Foundation of an e-Business Strategy Any e-business strategy today needs to
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