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Business to business Business to business marketing It’s a mode of marketing whereby an organization markets its goods and services to other organizations. The transactions are normally carried out between two or more organizations. It could be either between a retail organization and a wholesaler or between a manufacturer and a wholesaler (Coe, 2003). The volumes that are normally transacted in B2B are usually higher as compared to those involved in other forms of transactions. The buying behavior of organizations is normally different from that of individuals.
As a result the strategies applied in marketing for B2B has to be different (Lilien & Grewal, 2012). The Coca-Cola Company is one of the largest organizations in the world. It has many branches and franchises across the world that do the production on its behalf. Once the production is completed, the company normally distributes the finished products to the various wholesalers. The wholesaler organizations normally make their buying decisions based on the areas they are located and their sales turnover.
For instance, if the sales turn over is low, the organizations will not buy much of the drinks. The space they have available for storing the goods will also influence their buying behavior. In most cases, the Coca-Cola Company does most of the marketing but indirectly on behalf of the wholesalers. The company markets directly to the customers. The customers will in turn buy more from the wholesalers who will then be able to make a buying decision from the producers and the various franchises.
Therefore, the company stimulates its business to business sales by directly marketing to the customers and the ramification of this is that the wholesalers and retailers will be influenced to buy the products. Reference ListCoe, J. M. (2003). The fundamentals of business-to-business sales & marketing. New York: McGraw-Hill.Lilien, G. L., & Grewal, R. (2012). Handbook of Business-to-Business Marketing. Cheltenham: Edward Elgar Pub.
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