Question

2. Review the marketing theory on “Derived Demand” (pages 122 & 123). Business-2-Business is very much impacted by consumer demand. And to some extent, consumers may not be able to get certain things they want, if businesses are unable to fill the need. Again, assume that a gradual return to normal would not begin until late summer of 2020. Which B2B sectors will do well and which not so much? Why? (

Answer 1

though it is difficult to predict when this crisis would end if Covid 19 would end and when we would return to normal life once again. though there are predictions that everything would be normal by late summer this year. it would be wrong to think that as soon as all this ends, life would return to where it was the very next day. the more this situation prolongs the more adverse effects it would have on the economy. People right now are focused on arranging daily needs for themselves and their families.there are many people who have lost their jobs and other people are in fear they would lose it any minute. Hence we can expect that people will not spend their money the way they used to.

Many businesses are thriving even in this situation, like medical supplies, Groceries etc. but post the pandemic scare, it's hard to believe that people get over this loss very easily. Post this scare, local businesses are expected to thrive. People would not want to travel overseas or to other crowded tourist destinations, but would like to venture to local restaurants as they would have been confirmed to their homes for a long now. hence it is expected that restaurants would drive and hence the related industries.there could be an increases in hygiene products file hand wash and sanitizers, because it would by then become a habit to continues clean and sanitize hands.there could be a rise in demand for sports equipment and gym memberships, because people are right now deprived of physical activities. Post this they might be inclined to become more physically active.