B2B Marketing

Posted in Marketing and Strategy Terms, Total Reads: 3095

Definition: B2B Marketing

B2B marketing is a practise 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.

The need for this is driven by the complex value chain of demnad.

Let us take the example of manufacturing of shirt. It has multiple layers of demand driven by the consumers need to purchasing a shirt.

Cotton -> spinning -> weaving -> tailoring -> distribution -> shirt

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.

Key features: -

a) Complex decision making due to the presence of multifaceted and highly knowledgeable customer.

b) B2B marketers are more rational.

c) B2B products are more complex.

d) Limited number of buyers.

e) Behavioural and needs based segmentation is less in number.

f) Maintaining personal relationships is of key importance.

g) They are long term buyers.

h) The innovation levels in B2B markets are less as compared to consumer markets.

i) These rely less on packaging and other external appearances.

j) Sub-brands are not that effective in B2B zone.

k) B2B are more demanding to reduce the risks involved in making purchasing decisions for their company.

Examples: - In automobile manufacturing, the vehicle components are manufactured by different companies and finally they all sell it to the automobile manufacturer to assemble all the parts. Multiple transactions happen resulting in a large volume.


Hence, this concludes the definition of B2B Marketing along with its overview.

Browse the definition and meaning of more terms similar to B2B Marketing. The Management Dictionary covers over 7000 business concepts from 6 categories. This definition and concept has been researched & authored by our Business Concepts Team members.

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