B2B Market Attractiveness Evaluation – How to Size Opportunities and Reduce Risk
When compared to a business-to-consumer sales model, the business-to-business sales process is longer and of higher average value with a smaller number of buyers. B2B buyers are quicker to react to changes in the economy with statistics showing that during an economic crisis, B2B purchases drop more severely than personal expenditures. International companies selling products such as raw materials, machinery, transportation or other B2B goods and services must develop a systematic framework serving their medium and long term company strategy. The B2B Market Attractiveness Index is a composite index providing one figure ratings for each B2B market segment using a predefined formula on a large set of data. This rating can be used to evaluate country risks and opportunities.
For example, a company that produces electronic components in eight different countries within five different industries is indirectly being exposed to over 40 different B2B markets with all of these markets vital to the company’s success. Utilizing the index will help a company identify opportunities in multiple industries and geographies.
According to Euromonitor International’s Head of Industrial Research, Indre Cesniene, “The B2B Market Attractiveness Index is a must have for companies selling into multiple industries or geographies. Using Euromonitor’s framework will help businesses evaluate many different markets utilizing a systematic approach.”