Business to Business (B2B) Marketing - An Overview

What is “Business to Business Marketing” ?

Let us first understand the meaning of Business.

Any organization or firm actively involved in the transaction of goods and services to the consumers/end users is known as business.

As the name suggests “Business to Business Marketing” (B2B Marketing) refers to the exchange of either goods or services or both between two businesses (organization/firm). “Business to business marketing” also known as industrial marketing involves the sale of goods and services by one organization to the other which in turn either further sells them to the consumers or use them to support their own system.

In layman’s language business to business marketing is nothing but the transaction of goods and services between businesses/organizations/firms.

Transaction between a manufacturer and a wholesaler often comes under Business to Business Marketing.

Business to Business Communication

Communication is a strong medium which not only connects organization with the end-users but also employees of one organization with the employees of other organization/firm. Social media, Internet and so on connect one organization with another organization and come under various ways of Business to Business Communication.

Any communication done between employees of two organizations is referred as Business to Business Communication.

Examples of Business to Business Communication

An organization A sells Bulk SMS service to organization B and C.Organization A sells its services only to other organizations and not directly to consumers. An example of Business to Business Communication.

Employees in Organization A use various modes of communication to interact with Organization B and C.Communication can be through emails, social networking sites, presentations or mere verbal interaction. Organization B and C can use the services of Organization A either to support their own operations or directly sell to the end users/consumers.

Where does demand in Business Market arise from ?

Let us go back to the previous example.

Organization B and C would not need Organization A’s service if there is no demand among end-users or consumers. In simpler words an increase in demand of a particular product among consumers creates demand in business Market.

Let us understand the same with the help of an example:

Organization P sells furniture (desks, workstation, cabinets) to various offices in city A. Organization P does not deal with end users.Orgnization P would not survive if new offices do not open up in City A. New offices would only open up when more and more people are educated and there would be an underlying demand of consumers to open up new offices for them to earn their bread and butter. Need in consumer market is responsible for triggering the demand in business market. No business can survive in isolation. Each and every business is interlinked.

Size of Business Marketing

According to Hutt and Speh, business marketing constitutes the largest market. Growth in business marketing hints a growth in economy as well. Organization D would purchase more and more electronic appliances like refrigerator, television, mobile handsets from Organization F - a case of Business to business marketing only if the purchasing power of consumer increases. Consumers would be able to spend a substantial part of their income on electronic appliances/luxury goods only when their salaries increase.

Business to Business marketing helps in satisfying the needs/demands of other organizations, though primarily the need arises from the consumers/end users only.

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