Answered: What are some of the challenges that…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Question

What are some of the challenges that will exsit in a B2B business?

Expert Solution

Step 1 B2B business

B2B business is a type of business model that incurs transaction ( sale or exchange ) of goods and services between businesses. The B2B business involves the commercial transactions in which one business sells goods or services to the other. In such model one business organization becomes the customer of the other organization. B2B tends to happen in a supply chain system where one company purchases raw materials from the other which is further used in the manufacturing process.

Following are the advantages of B2B business model -

No huge initial capital is required unlike retail sales to individuals
lot of insider information is available which can be used to increase the income
marketing policy is not required as B2B sales client is quite savvy
there is lack of firm fight