Business to business (B2B) markets are characterized by often large and powerful buyers, purchasing predominantly for the furtherance of organizational objectives and in an organizational context using skilled/professional buyers.

Demand in B2B markets is normally derived from demand; customers are often geographically concentrated and negotiation is the order of the day in dealings between marketer and customer.

Marketing and selling in these markets are very different from that encountered in B2C markets. Buyers are much more likely to negotiate on price, and delivery and service are particularly important. The salesperson is likely to be dealing with skilled negotiators and the process of buying, and hence selling can extend over months or even years for certain types of capital equipment. As in consumer markets, there are several distinct types of sub-markets within B2B markets, the main ones being:

• Markets for supplies and consumables e.g. raw materials, and semi-manufactured goods;
• Markets for capital equipment e.g. plant, machinery;
• Markets for business services e.g. consultancy, technical advice.

• What is lead generation?
• What are B2B sales
• Similarities and differences between B2B and B2C sales
• Important factors in B2B business
• How to do it effectively