7 Reasons Why B2B Sales is Crucial for Export Management
B2B sales, or business-to-business sales, is the process of selling products or services to other businesses. B2B sales is different from B2C sales, or business-to-consumer sales, which involves selling to individual customers.
B2B sales is essential for export management, which is the practice of planning, organizing, and controlling the export activities of a company. Export management helps businesses expand their markets, increase their revenues, and diversify their sources of income.
In this article, we will explain what B2B sales is, how it works, and why it is important for export management. We will also provide some tips on how to succeed in B2B sales and export management.
What is B2B Sales?
B2B sales is the process of selling products or services to other businesses. Unlike B2C sales, which focuses on the needs and preferences of individual consumers, B2B sales requires understanding the goals and challenges of organizational buyers.
B2B sales typically involves longer and more complex sales cycles, multiple decision-makers, higher-value transactions, and more formal contracts. B2B sales also requires building long-term relationships with customers, providing after-sales support, and delivering value-added solutions.
How Does B2B Sales Work?
The B2B sales process consists of several stages, such as:
- Prospecting: This is the stage where you identify and qualify potential customers for your products or services. You can use various methods to find prospects, such as referrals, networking, online research, social media, cold calling, email marketing, etc.
- Qualifying: This is the stage where you determine if a prospect has a need for your products or services, has the authority and budget to make a purchase decision, and has a timeline to buy. You can use various techniques to qualify prospects, such as asking open-ended questions, listening actively, uncovering pain points, etc.
- Presenting: This is the stage where you present your products or services to the prospect and demonstrate how they can solve their problems or achieve their goals. You can use various tools to present your value proposition, such as brochures, slideshows, videos, testimonials, case studies, etc.
- Negotiating: This is the stage where you discuss the terms and conditions of the sale with the prospect and try to reach a mutually beneficial agreement. You can use various strategies to negotiate effectively, such as emphasizing benefits over features, offering discounts or incentives, handling objections or concerns, etc.
- Closing: This is the stage where you finalize the sale and get the prospect to sign a contract or place an order. You can use various tactics to close the deal successfully, such as creating a sense of urgency, asking for referrals or testimonials, following up promptly, etc.
- Servicing: This is the stage where you provide after-sales support and service to the customer and ensure their satisfaction and loyalty. You can use various methods to service your customers effectively, such as providing training or installation, offering warranties or guarantees, resolving issues or complaints, etc.
Why is B2B Sales Important for Export Management?
B2B sales is crucial for export management because it helps businesses:
- Expand their markets: B2B sales allows businesses to reach new customers in different countries and regions and tap into new opportunities and demand.
- Increase their revenues: B2B sales enables businesses to sell more products or services at higher prices and margins and generate more income and profits.
- Diversify their sources of income: B2B sales helps businesses reduce their dependence on domestic markets and customers and mitigate the risks of economic downturns or fluctuations.
- Enhance their reputation: B2B sales helps businesses establish their brand image and credibility in foreign markets and customers and gain a competitive edge over rivals.
- Learn from best practices: B2B sales helps businesses learn from other businesses in different industries and sectors and adopt best practices and innovations.
How to Succeed in B2B Sales and Export Management?
To succeed in B2B sales and export management, businesses need to:
- Conduct market research: Businesses need to conduct thorough market research before entering a foreign market and understand the culture, regulations, trends, competitors, customers, etc. of that market.
- Develop a marketing strategy: Businesses need to develop a clear marketing strategy for each foreign market and define their target segments, positioning, differentiation, pricing, distribution channels, promotion methods etc.
- Adapt their products or services: Businesses need to adapt their products or services to meet the needs and expectations of foreign customers and comply with local standards and regulations.
- Build relationships with customers: Businesses need to build strong relationships with foreign customers by providing value-added solutions, customized service, and after-sales support.
- Seek partnerships with local agents or distributors: Businesses need to seek partnerships with local agents or distributors who can help them access foreign markets,
customers, and resources and provide them with market intelligence, logistics, and legal assistance.
What is B2B sales?’What is B2B sales?
B2B sales is a term that refers to business-to-business sales, where a business or company sells products or services to other businesses rather than selling directly to consumers (B2C sales). For example, a software company that sells its products to other companies is a B2B seller, while a clothing store that sells to individual customers is a B2C seller.
Global demand for B2B sales
According to a report by Forrester, the global B2B e-commerce market reached $1.134 trillion in 2018, accounting for 12% of the total US B2B sales. The report also projected that this percentage would increase to 17% by 2023, as more businesses adopt digital platforms and tools to facilitate B2B transactions. The internet provides a robust environment for B2B sellers to showcase their products and services, connect with potential buyers, and conduct online procurement. Some of the factors that drive the demand for B2B sales are:
- The need for efficiency and cost reduction in the supply chain
- The availability of specialized and customized solutions for different industries and niches
- The emergence of new markets and opportunities in developing regions
- The increased use of social media and content marketing to generate leads and build relationships
References:
https://www.infosys.com/about/knowledge-institute/insights/Documents/future-customer-engagement.pdf
http://fortune.com/fortune500/2015/
https://archive.org/details/ecommerceformula00plan/page/26
https://www.outreach.io/blog/what-is-b2b-sales
Business-to-Business (B2B): What It Is and How It’s Used
