Derived Demand is a characteristic of business markets in which the demand for industrial goods (B2B) is essentially a result of and directly related to the demand for consumer goods (B2C). That is, firms purchase resources, machinery, or services only because there is a demand for the final consumer product.
For example, the demand for steel by automobile manufacturers is a derivative of the demand for cars by end users. B2B marketers must closely monitor consumer market trends, as fluctuations in consumer demand lead to significantly larger and faster changes in derived demand.
