Question

When an electronics company sells its global positioning systems to a car manufacturer, it is engaged in ________ marketing.

Answer 1

Answer:

It is called a Business to Business or B2B Marketing

Explanation:

B2B or Business to Business Marketing simply occurs when a business organisation decides to going into transaction with an other business organisation. The two businesses can be within the same locality or not. A criteria is that a B2B marketing involves a commercial transactions which would be to the benefit of both parties.

The opposite of B2B is B2C (Business to Consumer) marketing, this is the commonly known type of marketing where a consumer/individual patronizes the products of a manufacturer or business organisation.

B2B will usually occur when a company needs certain products or materials to complete its own finished goods and this can be purchased from another organisation that has been adjudged to be a producer of same.

It could also occur, when a business is required to take on the services of another business for instance in audit cases.

In the case of the question, the global positioning system is a finished product of the electronics company required by the car manufacturer to complete his own finished product (the car). Hence, the B2B marketing.