What is B2B Marketing

B2B or business-to-business marketing is a type of marketing wherein you sell your products to businesses or other organizations so they could use it in the production of goods, or in general business operations such as medical equipment, office supplies, or for resale to other consumers, like a wholesaler selling to a retailer.

B2B was introduced in the 1990s, and during that time, it was hard to explain to potential customers how B2B marketing works. Back then, most people dismissed the idea of B2B marketing, along with the techniques that are used to get to know these markets were meaningfully different from consumer marketing. Therefore, B2B marketing is all about meeting the needs of other businesses. However, the demand for the products that are made by these said businesses is often driven by consumers in their homes.

What is the Difference between B2B Marketing from Consumer Market?

There are at least three significant differences between marketing to consumers and marketing to


Fewer customers: In the United States alone, there are about 316,000,000 potential individual

consumers. That is why the number of businesses in comparison is much lower. Back in 2007, it was estimated that approximately 7,700,000 enterprises were operating in the U.S., and about 86% of them have less than 20 employees.

Complex Transactions: The products and buying process are often more complex. The products acquired are often very composite and expensive, such as manufacturing equipment, which are sometimes even custom-made. Furthermore, the negotiation between buyers and sellers is much more ubiquitous because of the increased haggling power of individual buyers.

Different types of business consumers in B2B Marketing.

Manufacturers –  These are the businesses that produce products. Their purchases will be the inputs for their production, such as labor outsourcing, raw materials, and components. They will also buy some products to support overall operations, such as computers, office supplies, and furniture.

Trade – This type of business consumers often purchase finished products that they can sell to their consumers to make a profit. The best examples of this are retailers and wholesalers. For example, a wholesaler will make a high-volume purchase of a product at a discounted price, and then they will sell the said product to retailers at a higher price but in a lower volume. But, trade businesses will also buy products to fund general operations.

Government – According to studies, the largest consumer in the U.S. market, bar none, is the government. Instead, they often spend trillions of dollars for services and goods ranging from office supplies furniture to billion-dollar aircraft carriers.

Institutions – This type of business consumer are organizations that often engage in educational, charitable and community activities. They can be both public or private organizations. Some of the most common examples of institutions are universities and hospitals. They generally buy products that can help their service activities, such as office supplies and specialized equipment that are often needed for a service, such as an X-ray or MRI machine.


B2B marketing is marketing that targets businesses and other organizations. The business market is different from individual consumer markets in several meaningful ways. First, business markets are more minor, and the demand is often derived from individual consumer demand. Second, the transactions made in B2B marketing are usually more complicated and demanding because they often include heavy equipment and bulk orders.