Published by MBA Skool Team, Last Updated: January 07, 2021
What is B2B Marketing?
B2B marketing is a practice of business organizations, individuals or government institutions through which they sell off their products or services which in turn are resold or used in the manufacturing of another product or facilitate a service or add value to their operations. B2B marketing are the business & sales which happens amongst two business firms. In B2B or business-to-business marketing, the finished goods of one firm can act as the input materials to another.
Businesses sell cotton to merchants who resell it to the spinners who further sell it to the weavers who again sell it to the cloth manufacturer and so on. Businesses do not buy the products for pure indulgence. They purchase them with the objective of adding value to facilitate the movement of products down the value chain of derived demand till it reaches the end consumer.
2. In automobile manufacturing, the different vehicle components are manufactured by different companies. The different components are engines, wheels, mirrors etc which are manufactured by other companies. Finally, they all sell it to the automobile manufacturer to assemble all the parts. Multiple transactions happen resulting in a large volume. This is a case of B2B marketing between component manufacturers & the automobile manufacturing company.
Hence, this concludes the definition of B2B Marketing along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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