Selling from B2B to B2G comes with unique challenges to learn
In 2021, the business-to-business e-commerce market was projected to reach roughly $18.57 trillion by 2026. The question is, how does this compare to the B2G market?
The business world is full of subtle nuances, and sometimes it’s challenging to keep up with all the information out there. One key difference many B2B businesses aren’t aware of is the difference between B2B and B2G.
Some businesses wonder what B2G is because many companies haven’t heard of it before. While there are a few key differences between the two, they become more apparent once you learn more about them.
So if you want to learn what B2B to B2G is and the key differences, then read on to learn more.
What is B2B to B2G?
Before we get into what separates these two styles of marketing, it’s vital to get an idea of what each marketing style is. So let’s go through each of them now.
B2B is the process of selling products or services to another business, and there are several reasons companies use B2B services.
One reason is that certain businesses rely on other companies to provide their product or service. For example, mechanics may need car parts from other companies to deliver their service.
The difference with B2G marketing is that it is the process of a business selling government services. Again there are many reasons why companies use this method of marketing.
One of the biggest reasons why businesses market to government services is because the market is so big. So if you are a big business that offers an excellent service and can provide it to the government, you may have many opportunities with government services.
Selling your product B2B
Successful B2B selling is all about connecting with other businesses and providing them with an excellent service. The marketing style to other businesses is different from marketing to B2C marketing.
One thing about marketing to other businesses is that they may require a larger amount of your product or service than a customer would. This can be because they have a larger audience and need your products or services to help them sell their own.
While both B2B and B2C businesses can be profitable when done right, B2B can be beneficial for creating long-term business relationships. Additionally, the business owners that you provide your product or service to may know other companies that they can refer you to.
Overall, B2B focuses on how your product or service can help another business. This can be through helping them streamline their processes, assisting their online technologies, or increasing their profit.
Of course, these are only a few ways businesses may need your services, and there are many more reasons than this.
Selling your product B2G
A B2G service is much more focused on how you can help the government with its services. There are whole myriad ways that your business may be able to help them.
For example, in today’s day and age, law enforcement agencies rely heavily on police officer scheduling systems, also known as POSS scheduling software, to help maximize the availability and flexibility of police officers. If you run a software company that targets law enforcement, you may use B2G to help the police agencies with their scheduling needs.
B2G marketing is about showing the government that you can help them with your product or service effectively. If you can demonstrate to a government service that you can do this, you may be doing business with them sooner than you think.
Advantages and disadvantages of B2B vs. B2G
While we have mentioned some of the differences between B2B and B2G marketing, we still need to cover the pros and cons of each. So let’s compare the advantages and disadvantages of each marketing style.
One advantage to having B2B marketing is the potential future business that it can bring. Many business owners are in networking groups with other business owners, so the word can spread quickly if you have a great product or service.
One disadvantage of B2G is that if you do get a contract to do work for a government service, it may not be for long. However, with B2B, you may create a business relationship that lasts a lifetime.
Having said this, an advantage of B2G is that governments go through periods where they heavily rely on specific products and services. For example, police agencies might use computer-aided dispatch software for different purposes. Larger cities benefit the most from this technology because it helps coordinate and dispatch the proper law enforcement.
Also, they often have a large amount of funding they can use if needed. This means you may be able to negotiate with government services to get a big deal that could be very financially profitable for your business.
Another disadvantage to B2G is that governments can take a long time to process contracts, and it’s not always as reliable in the short and long term as B2B is.
Therefore for most businesses, B2B is a more favorable option that could bring your business more profits in the long run.
Get more insights on B2B to B2G
There are many different variables in B2B to B2G, and it’s good to know which one will benefit your business most. A lot of businesses find it beneficial to review their marketing strategies.
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Kevin Ruef co-founded 10-8 Systems after exceeding multiple companies’ sales records (both domestically and internationally). With more than a decade in sales, his experience ranges from B2B, B2G, and B2C. Since the company’s start in 2019, Kevin has been responsible for business development, strategic partnerships, and business operations.