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    B2B Module1 2019

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    Shikha Prasad
    The document discusses business-to-business (B2B) marketing. It defines B2B marketing as matching a supplier's capabilities with a customer's desired outcomes to create value for both the customer and its downstream customers. B2B marketing focuses on understanding, creating, and delivering value to business customers through all entities in the value chain. The marketing mix in B2B differs from consumer marketing, focusing more on personal selling and long-term relationships rather than advertising.

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    B2B Module1 2019

    Uploaded by

    Shikha Prasad
    54 views33 pages
    The document discusses business-to-business (B2B) marketing. It defines B2B marketing as matching a supplier's capabilities with a customer's desired outcomes to create value for both the customer and its downstream customers. B2B marketing focuses on understanding, creating, and delivering value to business customers through all entities in the value chain. The marketing mix in B2B differs from consumer marketing, focusing more on personal selling and long-term relationships rather than advertising.

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    B2B-Module1-2019

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    The document discusses business-to-business (B2B) marketing. It defines B2B marketing as matching a supplier's capabilities with a customer's desired outcomes to create value for both the customer and its downstream customers. B2B marketing focuses on understanding, creating, and delivering value to business customers through all entities in the value chain. The marketing mix in B2B differs from consumer marketing, focusing more on personal selling and long-term relationships rather than advertising.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    54 views33 pages

    B2B Module1 2019

    Uploaded by

    Shikha Prasad
    The document discusses business-to-business (B2B) marketing. It defines B2B marketing as matching a supplier's capabilities with a customer's desired outcomes to create value for both the customer and its downstream customers. B2B marketing focuses on understanding, creating, and delivering value to business customers through all entities in the value chain. The marketing mix in B2B differs from consumer marketing, focusing more on personal selling and long-term relationships rather than advertising.

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    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 33

    WHAT IS B2B MARKETING?

     THE PROCESS OF MATCHING AND


    COMBINING THE CAPABILITIES OF
    THE SUPPLIER WITH THE DESIRED
    OUTCOMES OF THE CUSTOMER TO
    CREATE VALUE FOR THE
    CUSTOMER AND ALSO FOR
    “CUSTOMER’S CUSTOMER.”
    B2B Mktg MODULE 1 1
    Apr 22, 2020
    B2B MARKETING
     IT IS DEFINED AS THE PROCESS OF MATCHING AND
    COMBINING THE CAPABILITIES OF THE SUPPLIER
    WITH DESIRED OUTCOMES OF BUSINESS PARTNER.
     IT IS ALSO DEFINED AS UNDERSTANDING VALUE,
    CREATING VALUE , DELIVERING VALUE TO
    BUSINESS CUSTOMERS .
     THE COMPANIES IN THE ENTIRE VALUE CHAIN
    HAVE TO FOCUS NOT ONLY ON THE NEXT
    CUSTOMER BUT ON SERIES OF FINAL
    DOWNSTREAM CUSTOMER TILL THE FINAL
    CUSTOMER.
    B2B Mktg MODULE 1 Apr 22, 2020
    2
    B2B Mktg MODULE 1 Apr 22, 2020 3
    BUSINESS MARKETING
    • BUSINESS MARKETING IS MARKETING
    PRODUCTS OR SERVICES TO
    • OTHER COMPANIES
    • OEMS (ORIGINAL EQUIPMENT
    MANUFACTURERS)
    • GOVT BODIES
    • INSTITUTIONS
    • OTHER ORGANIZATIONS
    • INDUSTRIAL DISTRIBUTORS
    • EDUCATIONAL INSTITUTIONS
    • NGOS
    B2B Mktg MODULE 1 4
    Apr 22, 2020
    TYPE OF PRODUCTS
    • RAW MATERIALS
    • MANUFACTURED MATERIAL
    • OEM PARTS OR COMPONENTS
    • CAPITAL EQUIPMENT
    • MAINTENANCE, REPAIR & OPERATIONS PRODUCTS
    • FACILITATING SERVICES
    • BANKING, MARKETING RESEARCH, ADVERTISING ,
    TRANSPORTATION, COMMUNICATION, MEDICAL
    FACILITIES, HOSPITALITY
    • RESEARCH, CONSULTANCY, ADVISORY, FINANCIAL
    MGMT, RISK MANAGEMENT
    • MANAGEMENT SERVICES
    • SAFETY, SECURITY
    B2B Mktg MODULE 1 5
    Apr 22, 2020
    B2B VS CONSUMER MARKETING

    B2B Mktg MODULE 1 Apr 22, 2020 6


    B2B Mktg MODULE 1 Apr 22, 2020 7
    B2B Mktg MODULE 1 Apr 22, 2020 8
    THE MARKETING MIX

    Produc
    t

    B2B Mktg MODULE 1


    Apr 22, 2020

    9
    MARKETING MIX: PRODUCT
    THE TOTAL OFFERING IS
    CREATED BY A
    PARTNERSHIP BETWEEN
    THE BUYING
    ORGANIZATION AND THE
    MARKETING
    ORGANIZATION.
    THE PROCESS CREATES AN
    AUGMENTED PRODUCT
    THAT IS SPECIFIC TO THE
    BUYING UNIT’S NEEDS AND
    MAXIMIZES THE VALUE
    CREATION CAPABILITIES
    OF THE MARKETER. Core Product
    + Financing Terms
    + Delivery Options
    Apr 22, 2020
    B2B Mktg MODULE 1 10
    = “Total Offering”
    MARKETING MIX: PRICE
    THE MUTUALLY AGREED-UPON AMOUNT THAT
    SATISFIES BOTH SIDES IN AN EXCHANGE.
     OFTEN VARIES FROM FIXED PRICE, WITH MORE
    SPECIAL DISCOUNTS AND ALLOWANCES (IN
    COMPARISON TO CONSUMER MARKETS.)
     MAY INVOLVE THINGS OTHER THAN A ONE-TIME
    PRICE PAYMENT (SUCH AS COMMISSIONS.)

    Price is the measure


    of value exchanged
    and is determined
    B2B Mktg MODULE 1
    by the market—not
    Apr 22, 2020
    11by costs.
    MARKETING MIX: PLACE
    • PLACE IS ABOUT GETTING THE PRODUCT
    TO THE CUSTOMER IN ORDER TO
    MAXIMIZE ECONOMIC UTILITY.

    B2B Mktg MODULE 1 Apr 22, 2020


    12
    CHANNELS

    Consume Business
    r to
    Business

     Indirect, multiple
     Shorter, more direct
    relationships
    Organization
     Little or no
    involvement as part of
    customer supply
    supply chain
    chain involvement

    B2B Mktg MODULE 1 Apr 22, 2020


    13
    MARKETING MIX: PROMOTION
    Business-to-business marketing
    requires a different emphasis on
    different parts of the promotional mix
    Consumer V.S. Business to Business

     EMPHASIS IS  EMPHASIS IS
    FREQUENTLY ON FREQUENTLY ON
    PERSONAL SELLING.
    ADVERTISING.
     COMMUNICATION
     COMMUNICATION
    WITH CUSTOMERS
    WITH CUSTOMERS IS SHOULD BE A
    OFTEN A MONOLOGUE. DIALOGUE.
     RELATIONSHIP IS  RELATIONSHIP IS
    OFTEN BRIEF. OFTEN LONG-
    B2B Mktg MODULE 1
    LASTING.
    14
    Apr 22, 2020
    BUYER BEHAVIOR

    Business
    Consume to
    r Business
     Professionally trained
     Individual purchasing
    Family involvement, purchasing personnel
     Functional
    influence
    Social or involvement at many
    levels
    psychological motives
     Task motives
    predominate
    predominate

    B2B Mktg MODULE 1 Apr 22, 2020


    15
    VALUE CHAIN AND
    OFFERING Perceives
    Infrastructure

    M
    Offering:
    ar
    gi
    Human resources

    n
    th
    Procurement

    ro
    ug
    Technology &
    Product
    h
    technology development

    va
    l
    Target
    ue
    Support activities Service
    Added value
    Direct activities Image Customers
    e
    cs cs s a lu Availability
    i ti le e v
    i st g is sa rvic gh
    Quantity
    g lo & se ou
    lo o ns d g r r
    d
    at
    i un in e th Evaluated Price
    o un r o ket m i n
    b pe ut
    b ar to
    ar
    g
    In O O M Cus M
    Creates

    Apr 22, 2020


    B2B Mktg MODULE 1
    16
    THE VALUE CHAIN

    B2B Mktg MODULE 1


    Apr 22, 2020
    17
    Value Chain: Suppliers

    Value Value Value Value


    Enabling Creating Value Value
    Enabling Creating Enabling Creating

    Value Enabling activities include


    infrastructure, human resources, procurement
    and technology/technology development. Value
    Creating activities include inbound and
    outbound logistics, operations, marketing and
    sales and customer service.
    B2B Mktg MODULE 1 Apr 22, 2020

    18
    TOTAL OFFERING
    • THE PUZZLE OF THE B2B CONSUMER NEEDS

    “Total
    Offering”

    •Product
    •Service
    •Image
    •Availability
    •Quantity
    •Evaluated
    Price
    B2B Mktg MODULE 1
    Apr 22, 202
    0
    19
    EVALUATED PRICE
    TOTAL COST OF OWNING OR
    USING A PRODUCT
    TRANSPORTATION, CARRYING
    COSTS, FINANCING COSTS,
    POTENTIAL OBSOLESCENCE, COST
    OF FAILURE, INSTALLATION,
    FLEXIBILITY TO UPGRADE, ETC.
    CONSUMERS HAVE SAME
    CONSIDERATIONS BUT ARE
    ATTRACTED TO “DEALS”
    B2B Mktg MODULE 1 Apr 22, 2020
    20
    WHAT CONSTITUTES OF B2B
    MARKETING?
    • THE TRANSACTIONAL EXCHANGE HAS A LIMITED RANGE
    OF EFFECTIVENESS BUT STILL IT HAS THE POWER TO
    PUNISH THE UNDERPERFORMING SUPPLIERS.
    • MANY A TIMES LEVEL OF COMPLEXITIES AND
    SIGNIFICANCE IN CREATION OF VALUE THAT ARE
    POORLY SERVED BY TRANSACTIONAL EXCHANGE.
    • THE FACTORS OTHER THAN THE PRICING WHICH
    AFFECT THE LONG TERM RELATIONSHIP ARE DEFECTS
    %,LATE DELIVERIES, INVENTORY COST, ORDERING
    B2B Mktg MODULE 1 Apr 22, 2020 21

    COSTS & SO ON.


    WHAT CONSTITUTES OF B2B
    MARKETING? (2)
     PURCHASING EFFORTS & LOGISTICAL EFFICIENCIES’ IMPACT ON
    PROFITS FAR OUTWEIGHS THAT FROM MARKET PENETRATION.
     A STRATEGIC PARTNERSHIP RESULTS WHEN BOTH PARTIES HAVE
    KEEN INTERESTS IN MAINTAINING AN ONGOING EXCHANGE.
     OTHER ASPECTS OF CLOSE RELATIONSHIP ARE
    1) REDUCED NO. OF SUPPLIERS
    2) JIT RELATIONSHIP
    3) HIGH LEVEL OF COMMITMENT, INTEGRITY & JOINT
    EFFORTS FOR DEVELOPMENT OF NEW, BETTER PRODUCTS.

    B2B Mktg MODULE 1 22


    Apr 22, 202
    0
    RECENT TRENDS IN BUSINESS
    MKTG
    • HYPERCOMPETITION
    • FORMATION OF PARTNERSHIP NETWORKS
    • ADOPTION OF IT & THE INTERNET
    • SUPPLY CHAIN MANAGEMENT
    • TIME COMPRESSION
    • DIGITAL PRESENCE
    • E-MARKETING
    B2B Mktg MODULE 1 Apr 22, 2020 23
    B2B Mktg MODULE 1 Apr 22, 2020 24
    B2B Mktg MODULE 1 Apr 22, 2020 25
    B2B Mktg MODULE 1 Apr 22, 2020 26
    NEVER TALK PRICE

     FIRST RULE OF SELLING :


     PEOPLE BUY FROM WHOM
    THEY WANT TO BUY AND
    MAKE PRICE AND ALL OTHER
    DECISION FACTOR FIT.
    B2B Mktg MODULE 1 Apr 22, 2020 27
    CHARACTERISTICS OF BUSINESS
    MARKETS
    • DERIVED DEMAND
    • DEMAND FOR INDUSTRIAL PRODUCTS IS DERIVED FROM
    THE ULTIMATE DEMAND FOR CONSUMER PRODUCTS

    • FLUCTUATING DEMAND
    • BUSINESS MARKETERS CAREFULLY MONITOR FLUCTUATING
    TRENDS AND PATTERNS IN CONSUMER MARKETS
    • DOWNTURN IN THE ECONOMY CREATES THE OPPOSITE
    RESULT
    B2B Mktg MODULE 1 Apr 22, 2020 29
    B2B Mktg MODULE 1 Apr 22, 2020 30
    B2B Mktg MODULE 1 Apr 22, 2020 31
    B2B Mktg MODULE 1 Apr 22, 2020 32
    B2B Mktg MODULE 1 Apr 22, 2020 33

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