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UNIQUENESS OF THE B2B MARKET AND SUCCESS DRIVERS

B2B market is an important sector of the economy because of the revenue that it accounts for. Lilien (2016) claims that the most recently published data by the US Department of Commerce Statistics indicates that B2B transactions yielded $10.7 trillion in revenue. In spite of the importance of the sector, there is minimal research directed towards it compared to the B2C (Business to consumer market). . Lilien (2016) states that the demand for products and services in the B2B sector is derived and not primary. Being derived means that demand in the B2B sector is influenced by the demand of some subsequent consumers. Primary demand occurs when the demand for products and services is pushed by the tastes and preferences of consumers. Thomas (2016), on the other hand, claims that the B2B market focuses on manufacturing or technology. Most firms that are categorised as B2B, therefore, engage in manufacturing or technology products. Liu et al. (2018), on the other hand, argue that the uniqueness of the B2B market lies the market structure. The market structure is mainly heterogeneous, a factor that makes it difficult for companies within this market to focus on customer or client segmentation. Instead, firms tend to focus more on analysing their competitors and the differentiated strategies that competing firms use in the business environment to establish connnections within the distribution network. Liu et al. (2018) claim that the approach to achieving business goals is different from what happens in the B2C market where segmentation is the most important factor for firms within the market when developing strategies that are designed to enhance busines competitive advantage. Pawłowski and Pastuszak (2017) also claim concerning the fundemental differences between the B2B market and the B2C market. B2B organizations market their products to other businesses, an indication that they do not focus on customer segmentation because the needs of B2B clients are influenced by customer needs and preferences in the marketplace. Pawłowski and Pastuszak, (2017) suggest that B2B clients move their behaviour from the world of end consumers and transfer it to the B2B market. The professional clients also expect B2B organizations to supply them with products and services that would meet the needs and expectations of their customers. For instance, when an Internet company supplies Internet to another company, say a bank, the bank expects the Internet supplied to be reliable to meet the needs and expectations of banking customers. The claims reinforce the argument advanced by Liu et al. (2018) that B2B organizations must focus on anlysing their competitors instead of their customers to determine whether they are providing better product offerings that can help their professional clients to meet the needs and expectations of their customers

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