Anyone ever thought how a big company like BASF or Sun Pharma buy things for their employees or how they buy raw material for the company, stationery or other usable for the company. They are the transactions which are important for the success of their business.
This is the world of business-to-business or B2B in the context of chemical and Pharmaceutical companies and a proper way of marketing strategy is needed in these companies with a better planning of production and procurement.
- Chemicals and pharma companies are doing B2B business when it is for bulk and expensive purchases and B2C if formulations are sold to customer and hospitals.
- B2B can be explained as the transactions between businesses and companies. Like between a retailer and a wholesaler, or a wholesaler and a manufacturer. Most of Pharma companies are doing business in this format of appointing Whole sellers and further their retailers. This is just opposite to business-to-consumer (B2C) businesses, which typically involves commercial transactions between a business and a consumer or end user.
- If you can see the volume of B2B transactions in case of a pharmaceutical company is quite higher compared with the volume of B2C transactions. B2B is involving a typical supply chain of raw materials, their intermediates, final drug or API and then formulation of particular requirements, there are many B2B dealings which are having involvement of raw materials and other components, comparatively just one B2C business, it is the sale of the finished product to the consumer or end customer.
- B2B marketing is thus about attaining the needs of other businesses, in case of pharma it is a long chain of suppliers of B2B from the raw material at different stages and final product and destination of ultimate consumer of medicines. Although ultimately the demand for these products and services made by these businesses are likely to be driven by their consumers in their homes.
- B2B markets typically have a decision-making unit that is more complex In B2C, even the most complex decisions are limited to the entire family unit. In B2B markets, the decision making unit is taking all purchasing or buying decisions.Buying low-risk and low-value products is the responsibility of the junior position but buying a new plant is important to a business may very well involve a large management team and a group decision with a certain period of time.
Pharmaceutical raw material purchase is a process of systematic buying with planning and strategy so that the product will be delivered on time and perfection.
Created By: Vinita Bhandari www.getdigitalpartner.com