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    Bindiya Chotrani Gopalani
    This document provides an introduction to business-to-business (B2B) marketing. It defines B2B marketing as marketing goods and services to companies, government bodies, institutions, and non-profits for use in producing products or facilitating operations. The key differences between B2B and business-to-consumer marketing are outlined, including larger sales volumes, fewer but larger buyers, and more complex negotiations in B2B. Business demand is described as derived from consumer demand for downstream products and jointly demanded between suppliers. Major categories of B2B products and customers are also classified.

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    395 Promotions

    Uploaded by

    Bindiya Chotrani Gopalani
    22 views14 pages
    This document provides an introduction to business-to-business (B2B) marketing. It defines B2B marketing as marketing goods and services to companies, government bodies, institutions, and non-profits for use in producing products or facilitating operations. The key differences between B2B and business-to-consumer marketing are outlined, including larger sales volumes, fewer but larger buyers, and more complex negotiations in B2B. Business demand is described as derived from consumer demand for downstream products and jointly demanded between suppliers. Major categories of B2B products and customers are also classified.

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    This document provides an introduction to business-to-business (B2B) marketing. It defines B2B marketing as marketing goods and services to companies, government bodies, institutions, and non-profits for use in producing products or facilitating operations. The key differences between B2B and business-to-consumer marketing are outlined, including larger sales volumes, fewer but larger buyers, and more complex negotiations in B2B. Business demand is described as derived from consumer demand for downstream products and jointly demanded between suppliers. Major categories of B2B products and customers are also classified.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    22 views14 pages

    395 Promotions

    Uploaded by

    Bindiya Chotrani Gopalani
    This document provides an introduction to business-to-business (B2B) marketing. It defines B2B marketing as marketing goods and services to companies, government bodies, institutions, and non-profits for use in producing products or facilitating operations. The key differences between B2B and business-to-consumer marketing are outlined, including larger sales volumes, fewer but larger buyers, and more complex negotiations in B2B. Business demand is described as derived from consumer demand for downstream products and jointly demanded between suppliers. Major categories of B2B products and customers are also classified.

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    Download as PPT, PDF, TXT or read online from Scribd
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    of 14

    Introduction to Business-to-Business (B2B) Marketing

    What Is Marketing? the process of planning and executing the conception (product), pricing, promotion, and distribution of ideas, goods, and services to create relationships that satisfy individual and organizational objectives.

    BUSINESS MARKETING
    IS MARKETING OF GOODS AND SERVICES TO:
    Companies Government Bodies Institutions (i.e. hospitals) Non-Profit Organizations (i.e. American Red Cross)

    FOR USE IN PRODUCING THEIR PRODUCTS AND/OR TO FACILITATE THEIR OPERATIONS

    What Distinguishes B2B from B2C?


    B2B: goods or services are sold for any use other than personal consumption Note: It is not the nature of the product; it is the reason for the

    transaction.

    Is it a B2C or a B2B Transaction?


    You buy a gear to fix your mountain bike. Ford buys the same gear to fix a machine. Xerox buys soft drinks for its cafeterias. You start a landscaping business and purchase a lawnmower. The U.S. government buysanything.

    B2B versus B2C Marketing


    Characteristic
    Sales volume Purchase volume

    B2B Market
    Greater Greater

    B2C Market
    Smaller Smaller

    Number of buyers
    Size of individual buyers Location of buyers Buyer-seller relationship Nature of channel Buying influences

    Fewer
    Larger Concentrated Closer More direct Multiple

    Many
    Smaller Diffuse More Impersonal Less direct Single/Multiple

    Type of negotiations
    Use of reciprocity Use of leasing Key promotion method

    More complex
    Yes Greater Personal Selling

    Simpler
    No Less Advertising

    BUSINESS TO BUSINESS: IT IS ALL ABOUT DEMAND


    DERIVED DEMAND
    The demand for a companys products comes from (derived) the demand for their customers products. Most demand comes from consumers.

    JOINT DEMAND
    Two products are used together and demanded together Both products are consumed at the same time

    Other Characteristics of Business Demand

    Inelastic Demand Fluctuating Demand

    Major Uses of B2B Products For additional production (e.g., components are combined into subassemblies and become part of the finished product) For use in operations, but not part of the finished product For resale

    Classifying Business Goods & Services


    3 Main Categories of Products Entering Goods
    Become part of the finished product Cost assigned to the manufacturing process

    Foundation Goods
    Capital Items Typically depreciated over time

    Facilitating Products
    Support organizational operations Handled as overhead expenses

    Classifying Business Goods & Services


    Entering Goods Raw Materials
    Farm products & natural products Only processed as necessary for handling & transport Require extensive processing

    Manufactured Materials & Parts


    Any product that has undergone extensive processing prior to purchase Component Materials require additional processing Component Parts generally do not require additional processing

    Classifying Business Goods & Services


    Foundation Goods Installations
    Major long-term investment items Buildings, land, fixed equipment, etc.

    Accessory Equipment
    Less expensive & short-lived Not considered part of fixed plant Portable tools, PCs, etc.

    Classifying Business Goods & Services


    Facilitating Products Supplies
    Any supplies necessary to maintain the organizations operations

    Services
    Maintenance & Repair support Advisory support Logistical support

    Categories of B2B Customers


    Commercial enterprises
    Indirect channel members and facilitators OEMs (original equipment manufacturers) Users = customers

    Governmental organizations Institutions

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