what is b to b

Business-to-business (B2B) refers to a situation where one business makes a commercial transaction with another business. This type of transaction typically occurs when a business is sourcing materials for their production process for output, i.e. providing raw material to the other business. B2B transactions are conducted between companies, rather than between a company and individual consumer. B2B transactions tend to happen in the supply chain, where one company will purchase raw materials from another to be used in the manufacturing process. B2B transactions are also commonplace for auto industry companies, as well as property management, housekeeping, and industrial cleanup companies. B2B transactions entail direct-sourcing contract management, which involves negotiating terms that establish prices and various other factors such as volume-based pricing, carrier and logistics preferences, etc. . B2B transactions are different from business-to-consumer (B2C) transactions, which are those made between a company and individual consumers. In B2B, one business sells a set of products or services to another business. B2B marketing focuses on logical process-driven purchasing decisions, while B2C marketing focuses on emotion-driven purchasing decisions.