Business to Business Direct Marketing Makes a Difference to the Bottom Line

Business to Business Direct Marketing is something that almost all of us have heard of but most of us don’t know what it really is. Those people who are in a business and still don’t know about Business to business direct marketing, then its high time they understand what it is.

Let’s not make it difficult for you and explain it in very simple term that business-to-business direct marketing is the selling of products and services to organizations and companies with the purpose to make those organizations working and running.

The business-to-business markets that we are familiar with are product makers, resellers, the administration and non-profit organizations. Most of these businesses generate good revenue by a customer support; but, most of their profit is made by other companies. The best instance of this is a non-profit organization.

Whilst personal contributions from people like us are significant to a non-profit’s businesses, the majority of generous associations make the huge amount of their funds from firms or from government financial support. Due to this, non-profits should make themselves and their items and services striking not only for people, but for companies as well.

In order to make this happen, non-profit firms and some other companies advertising or trading themselves to other companies should see a good advantage benefit. Or we can say that, they should show the reason for the organization to purchase products and services from them instead of buying from their opponents, now this is where business to business direct marketing steps in.

Business-to-business marketers advertise or sell products that will make other companies work successfully. Several things companies make for other companies take in tools, parts, reserves, processing services and provisions.

Business to business direct marketing and business to consumer marketing are two different things where the difference of the type of product, service and company comes in. Additionally, for the reason that business-to-business marketers aim merely other organizations, they have a considerably more aimed marketplace as compared to business-to-consumer dealers.

You must be thinking that business-to-business direct marketing and business-to-customer marketing are two completely different terms but, you must be familiar with this that business-to-business marketing, in a lot of cases, is running mainly because of customer demand. We can say that, if there are no costumers to buy our item, there will be no business to business direct marketing as well. If there is no company, it will clearly not require the items and services presented by a different company.

The objectives of companies and costumers are usually similar. When picking a business for items and services, the majority of costumers and companies will pick them by considering the cost, class, delivery timing and their record with the company. Other thoughts may be the accessibility of the item and a few more things.

Business-to-business direct marketing is presently the most successful way of marketing. As knowledge is good for a successful business, companies must try to gather all the important information regarding their opponents. It is very important for the business people and companies to have all the knowledge about business to business direct marketing if they want to set a name in flourishing businesses.

Make sure that when you are advertising for your product or services you don’t forget to mention the advantage, this way you’ll have a good opportunity of grabbing readers or viewer’s attention. Make sure you advertisement and way of business to business direct marketing is attractive and must not make anybody say “what so nice or new about it”?

Business to business direct marketing is not that difficult or complicated thing, all you need to have is some knowledge and help of a professional. You can also look on internet for help and once you start doing this, you’ll find it really beneficial.


Bank of America – Banking on Small Business with Business Credit Cards

The Bank of America has been building on its existing small business lending portfolio over the past years. Three years ago, it was already one of the top small business lenders in Florida with over $1.5 billion in small business loans and over half that amount being micro-loans under $100,000. With its recent acquisition of credit card issuer, MBNA, the bank has moved into the growing small business credit card market.

Business caution about the economy has not managed to dampen the dynamic growth in the small business credit card market. Having banked on small business for some time now and having a big credit card operation under its wing, Bank of America is looking up their activities through small business credit cards.

Their business credit card package affords small businesses the opportunity to schedule electronic payments ahead of time, thereby freeing up a time consuming administrative task on the part of the business owner. Business credit card holders also get purchase protection, which doubles the manufacturer’s warranty period on purchases made by up to an additional year.

Credit lines for business credit card holders are flexible, and can go up to $25,000. The business’ everyday business purchases earn discounts and cash backs too.

The bank has taken line of credit for business credit cards one step further. The small business credit card holders can now link their checking accounts in the bank with their business credit card. In the event that your checking account suffers an overdraft, the bank automatically extends its overdraft protection benefit. This means they will transfer funds, in multiples of $100, from your business credit card account to cover the overdraft.

This automatic loan against the business credit cards’ line of credit should save small business owners a lot of embarrassment. The bank will extend this protection provided that there is sufficient credit remaining in the business credit card account and if the account is not in default under the Business Credit Card Agreement.

If your business credit card account cannot cover the overdraft, you may still have a problem though. To address that possibility, the bank will release sufficient funds even if it will cause your business credit card account to breach the pre-set credit limit. The business will be expected to settle this loan during the next payment period, but this facility can lift a heavy load from the business owner’s shoulders.

You may be concerned about financial charges. First of all, after the zero percent APR during the 9-month introductory period, your business credit card will be imposed a regular rate of prime rate plus either 6.99% or 9.99% APR (some other versions of the Bank of America business credit cards impose variable APR of either 15.24% or 18.24%).

Business credit card cash advances are subject to prime rate plus 15.99% APR, with a minimum of 19.99%, plus a cash advance fee of 3%, with a minimum $10 fee. If the cash advance causes the business credit card account to exceed the credit limit, you will be levied an over-credit limit fee, as specified in your Business Credit Card agreement.


Wooing Small Business With Business Credit Cards

A few weeks ago (April 18, 2007), Discover Financial Services launched a new business credit card that offers frequent flier miles to small business owners. Among the credit card brands, Discover was one of the last to start offering business credit cards to the small business sector. Reportedly, this is only the latest in a virtual avalanche of business credit cards designed for small business.

One cannot but wonder at the sudden interest.

Perhaps a glance at recent research material will offer some clues. Data shows that in 2006, the small business sector spent $4.9 trillion; but only one-twentieth (5%) of that money was paid through business credit cards in any form (credit or debit card). The credit card companies now want in on that huge market, and believe they can induce small business owners to not only make use of their business credit cards but also to spend more on their cards.

To achieve this, the credit card companies will have to convince the small business owners to use business credit cards in less traditional ways. Traditionally, business credit cards have largely been used to cover travel and entertainment expenses. What card companies want is for businesses to use their business credit cards for everyday spend.

This is the reason behind the new cash back rewards business credit cards. These cards offer 5% discounts on purchases of office supplies, gasoline, courier services and other essential business needs. MasterCard even went as far as launching a business credit card targeted at a specific industry: contractors and construction companies. MasterCard was also the first card company to provide zero-liability protection to small business credit card holders.

Discover’s recently launched business credit cards offer small business the chance to purchase checkbooks. This enables small business owners to pay for purchases from vendors that don’t accept business credit cards. These checkbooks tap into the spending limit on their Discover business credit cards. Visa offers a directly competing program.

American Express sponsors various networking events for small business credit card holders. It also features one of the most extensive business resource databases to help users of its business credit cards to address and resolve their everyday business management problems and concerns.

How big is the potential market for business credit cards, you may ask? If you take the $4.9 trillion small business spending in 2006 and double the current business credit card spend from 5% ($245 billion) to 10%, you have $490 billion. If you charge 15% interest on that, you have a $74 billion potential contribution to profits. In fact, market research companies forecast double-digit growth in small business credit cards between now and 2010, and total charges are projected to reach $740.2 billion by that year. That is a lot of profit.

It has been an uphill climb to get small business owners to subscribe to an expanded use of business credit cards. It takes time, but eventually business owners will respond. One issue that business credit card issuers will have to address is the marked preference of small businesses to pay their full balance for the month as and when it falls due. Card companies do not earn from such transactions. That should be food enough for thought.