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    Introduction To B2B Marketing

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    Purva Rathi
    This document provides an introduction to business-to-business (B2B) marketing. It defines business and marketing, and explains that B2B marketing involves marketing products and services to other businesses and organizations for use in producing their own products or facilitating their operations. The document compares B2B and business-to-consumer marketing in areas like product, place, promotion, and price. It also classifies B2B goods and services into entering goods, foundation goods, and facilitating products. Finally, it outlines some key categories of B2B customers like commercial enterprises, government organizations, and institutions.

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    Introduction To B2B Marketing

    Uploaded by

    Purva Rathi
    187 views24 pages
    This document provides an introduction to business-to-business (B2B) marketing. It defines business and marketing, and explains that B2B marketing involves marketing products and services to other businesses and organizations for use in producing their own products or facilitating their operations. The document compares B2B and business-to-consumer marketing in areas like product, place, promotion, and price. It also classifies B2B goods and services into entering goods, foundation goods, and facilitating products. Finally, it outlines some key categories of B2B customers like commercial enterprises, government organizations, and institutions.

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    Introduction to B2B Marketing

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    This document provides an introduction to business-to-business (B2B) marketing. It defines business and marketing, and explains that B2B marketing involves marketing products and services to other businesses and organizations for use in producing their own products or facilitating their operations. The document compares B2B and business-to-consumer marketing in areas like product, place, promotion, and price. It also classifies B2B goods and services into entering goods, foundation goods, and facilitating products. Finally, it outlines some key categories of B2B customers like commercial enterprises, government organizations, and institutions.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    187 views24 pages

    Introduction To B2B Marketing

    Uploaded by

    Purva Rathi
    This document provides an introduction to business-to-business (B2B) marketing. It defines business and marketing, and explains that B2B marketing involves marketing products and services to other businesses and organizations for use in producing their own products or facilitating their operations. The document compares B2B and business-to-consumer marketing in areas like product, place, promotion, and price. It also classifies B2B goods and services into entering goods, foundation goods, and facilitating products. Finally, it outlines some key categories of B2B customers like commercial enterprises, government organizations, and institutions.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 24

    Introduction – B2B

    Marketing
    Lesson 1
    Introduction
    What is Business ?

    A business is an entity that brings together time, effort


    and capital in order to produce a profit.
    Introduction…
    What is Marketing ?

    Marketing is defined as "the activity, set of


    institutions, and processes for creating,
    communicating, delivering, and exchanging offerings
    that have value for customers, clients, partners, and
    society at large. Marketing is a product or service
    selling related overall activities. 
    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.”
    Types of Marketing
    Company

    B2C
    B2B

    Businesses Government
    Consumers / End
    Users are Institutions
    individuals /
    Households
    Examples ….
    What kind of sales is following – B2C or B2B

    Tata selling Indica to Mr. Ram from its retail outlet.


    Examples ………

    Tata selling Indica to MP Government.


    Examples………….

    Tata selling Indica to Smart Cab.


    B2B Marketing
    Business to Business Marketing or Industrial
    Marketing or Business Marketing or Organizational
    Marketing is the marketing of products and services to
    business organizations. Business organisations include
    manufacturing companies, government undertakings,
    private sector organisations, educational institutions,
    hospitals, distributors, and dealers.
    B2B Marketing
    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
    B2B v/s B2C
    Product –

    B2B B2C
    Technically complex. No technicality involved.

    Customized. Standardized.

    After Sales Service is equally After Sales Service is somewhat


    important. important.
    B2B v/s B2C
    Place –

    B2B B2C
    Geographically concentrated. Geographically dispersed.

    Fewer or negligible Channel Levels. Multiple Level of Intermediaries.


    B2B v/s B2C
    Promotion –

    B2B B2C
    Emphasis is on Personal Selling Sales through intermediaries.

    Advertising through direct Advertising using Mass Media.


    marketing or specific magazines or
    journals.
    B2B v/s B2C
    Price –

    B2B B2C
    Most important factor in Relatively lesser important factor.
    purchasing decision.

    Price Negotiation is a very lengthy Price Negotiation are almost


    process. negligible. If at all happens closes in
    smaller time span.

    List Prices for standard products. MRP . Retailer offers discount


    (Dealer Landing Price) looking at the demand of the
    product and the margins.
    B2B v/s B2C
    Characteristic B2B Market B2C Market
    Sales volume Greater Smaller
    Purchase volume Greater Smaller
    Number of buyers Fewer Many
    Size of individual buyers Larger Smaller
    Location of buyers Concentrated Diffuse
    Buyer-seller relationship Closer More Impersonal
    Nature of channel More direct Less direct
    Buying influences Multiple Single/Multiple
    Type of negotiations More complex Simpler
    Use of reciprocity Yes No
    Use of leasing Greater Less
    Key promotion method Personal Selling Advertising
    BUSINESS TO BUSINESS:
    IT IS ALL ABOUT DEMAND
    DERIVED DEMAND
    The demand for a company’s products comes from
    (derived) the demand for their customer’s 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
    Entering Goods & Services
    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, PC’s, etc.
    Classifying Business Goods & Services
    Facilitating Products
    Supplies
    Any supplies necessary to maintain the
    organization’s 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
    THANK YOU

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