B2b And Internet Essay

B2B and the Internet

As seen in the previous part the growth in the adoption of the Internet in marketing has been revolutionary in the last decade. There are different stages though starting with the first one, when the Internet was utilized to enhance the efficiency of processes through a dramatic reduction in exchange costs in B2B. According to Arun Sharma (2002) this enhancement of the efficiency of exchanges could be in the domain of information (e.g., sales materials, manuals), customer support (e.g., frequently asked questions), and transactions. He explains also the second stage as the time when companies started “to enhance the effectiveness of their transactions”. As seen in the previous overviews business-to-business marketers used

So far this is the most developed form of firm’s Internet presence. In this stage, companies rely on the Internet to do almost all their transactions rather than through any other means. Especially in B2B marketing all the systems are interconnected in order to reduce transaction costs and related expenses. The efficiency and effectiveness of relationships are stimulated significantly by the reduction in costs associated with repeated transactions which is usually the objective for generating more revenue. If this is further explored it can be concluded that there is a need for transparent exchange of information between all the parties involved, e.g. customers, suppliers, and companies but also there should be bilateral and symmetrical information flow within the organization itself including all the different departments avoiding the occurrence of silos. The access should be easy and available for each economic agent in process. This can have impact on other important for the organization resources like time. The proper communication and exchange of information eliminates inefficiencies and bottlenecks in the cycle which saves time and makes the transactions faster but at the same time reliable. Moreover this influences the level of customer satisfaction because of the reduced final price and time for delivery. All of this lead to the conclusion that in B2B marketing bilateral effective communication between different players is absolutely essential and perhaps will be in the basis of the modern B2B companies thriving for success in a constant changing business