B2 b marketing part 1 prof abha wankhede
Post on 10-Jul-2015
78 Views
Preview:
DESCRIPTION
Transcript
Prof. Abha Wankhede
Definition:-
“Business Marketing is the practice of individuals, or organizations,
including commercial businesses, governments and institutions, facilitating
the sale of their products or services to other companies or organizations
that in turn resell them, use them as components in products or services
they offer, or use them to support their operations”
Is the marketing of products and services to business organizations.
◦ Commercial Enterprises-
Original Equipment Manufacturers: Nokia, Cisco, Ashok Leyland M&M
Users: Walia Auto Ancillary is a supplier to Tata Motors
Industrial Distributors/Dealers
◦ Government customers
Government undertakings: Indian Railways, State Electricity board, Defense,
MHADA
PSUs: BHEL, ONGC
◦ Institutional Customers-
Public Institutions: Government Hospitals, Municipality Schools
Private Institutions: Hotels, Schools, Colleges, Academy
◦ Cooperative Societies-
Manufacturing Units- Maharashtra Sugar cooperative Society, Kaira District
Co-operative Milk Producer.
Non-Manufacturing Units: Co-operative Banks, Housing Co-operative
Societies.
Derived Demand:-
◦ The demand for a good or service that results from the demand for another good or service.
◦ Ex.:- Pig Iron ---Steel ---Steel Sheets---Automotive part companies--Automobiles--End customer
◦ Derived from the ultimate demand for consumer goods and services in some cases.
Joint Demand:-
- Demand for product or services is interdependent on each other
◦ Ex:- Coffee Powder, Sugar & Milk in Making Coffee
◦ Ex:- Software- Operating System, Car & Fuel
Indust
rial
P
roduct
s
Supplies
Services
Lubricants, Fasteners, paints ,
Electrical Items
Supplies & Services
Iron ore, Crude oil, fruits, fish
Material & Parts
Capital items
Light equipment/
Accessories
Subassemblies
Acids, Fuel oil, Steel ,
Chemicals
Component Parts Gauges, TV tubes, Tyres,
Plants & Building
Installation or Heavy
Equipments
Hand tools, Dies, Jigs
Exhaust Pipe in Motor Cycle
Manufactured
Materials
Raw Materials
Plants, Office Building
Machine Tools, Furnaces
Legal, Auditing, Advertising,
Courier, Market Research
◦ Buying Orientation
Lowest Price:
tactics like Commodification and multi-sourcing
Eg- Government, Institutes
◦ Procurement Orientation
Quality improvement and cost reduction:
a) collaborative relationship with major suppliers:
JIT delivery scheduling,
quality assurance to attain zero defect
Integrative negotiation (benefits both)
b) working closely with functional areas: MRP Material Requirement
Planning
Eg- AMUL
◦ Supply chain Management Orientation
Focuses on how to improve the whole value chain from raw material to end users. Follows 3 philosophies
Deliver value to end users
Thru market research understand end user requirement
Outsource non-core activities
Identify the core-competency of the company
Group strategic and non strategic systems and subsystems
Outsource systems which are non strategic non competitive
Involve mature technologies and qualified suppliers
Support collaborative relationship with major suppliers
Communication, trust, cooperation, commitment between suppliers and buyers for mutual benefit
Results in lower cost and sustainable business and growth.
GE – 700,000 suppliers across thousands of entities, thru enterprise software solution
Internal Environment:-
Company Location, R&D Facilities, Production Facilities Human
Resource, Company Structure and Image of the company
External Environment:-
Micro Environment :-
Customers & Competitors
Suppliers
Macro Environment:-
Economic: business cycles, currency rate, interest rate, fiscal policies
Demographic: population growth/degrowth
Technological: start new industries and rapidly change existing
Government/Political & Legal: Bills passed for protection..SMED
Investors & NGO: impact on public and nature
Areas of Difference B2B Market Consumer Market
Market Characteristics Geographically Concentrated Geographically Disbursed
Relatively Fewer Buyer Mass Market
Product Characteristic Technical Complex Standardize
Customized
Service Characteristic Service , timely Availability
extremely Important
Somewhat Important
Buying Behavior Involvement of Various functional
area from both the ends
Involvement of family members
Purchase Decisions are performance
based and rational
Purchase decisions are mostly based
on Physiological
/social/psychological needs
Technical Expertise Relatively less technical expertise is
required
Stable Interpersonal relationship Non- Personal relationship
Areas of Difference Industrial Market Consumer Market
Channel Characteristic More Direct Indirect
Fewer Intermediaries Multiple layer of Intermediaries
Promotional Characteristic Emphasis on Personal Selling Emphasis on Mass Media
(Advertising)
Price Characteristic Competitive Bidding and Negotiated
Prices
List Price or MRP
List Price for Standard Products
Mission,Vission, Business Objectives
Strategy and Business Plan/AOP
Marketing
Technology/Pre Sales
Service
Sales
Total Market
Available market
CompanyMargins
Company Share
Retail and Consumer Business
Small and Medium Enterprise
Mid Market Segment
High Touch
Accounts
Strategic
Global A/C
Business Unit HEAD
(COO/CEO)
National Sales HEAD
National Marketing
HEAD
Product Mgmt.
Supply Chain Mgmt
System Integrator
Customer Service
National Solutions
(SME*)
* SME- Subject Matter Expert
Regional HEAD (Director)
High Touch
Accounts
Mid Market
Accounts
SME Accounts
Retails Channels
Sales HEAD (GM)
Various Support
Functions(GM)
Regional HEAD (Director)
System Integrator/
Partner Relations
Marketing operations
Projects Delivery
Finance
Post-Sales &
Customer Service
Pre-Sales &
Solutions
Sales HEAD (GM)
Various Support
Functional Heads
Service Industry HEAD
(COO/ CEO)
System Integrator/
Partner Relations
Marketing operations
Projects Delivery
Finance
Post-Sales &
Customer Service
Pre-Sales &
Solutions
BFSI Business HEAD
(COO/CEO)
Manufacturing Business HEAD
(COO/ CEO)
IT/ITES Business HEAD
(COO/ CEO)
Account Manager
Based at Regional Offices Close to Customer’s HQ
National Roles
Director level engagement 1 / 2 accounts- Nationally/Globally B2B Strategic relationship Long sales cycle
e.g. Cisco Wipro (Software development)
(vendor/partner)Cisco Wipro (Sell-thru, Sell-with)
(reseller/channel)Cisco Wipro (Customer;
Infrastructure devices for new projects)
Win-Win
System Integrator/
Partner Relations
Marketing operations
Projects Delivery
Finance
Post-Sales &
Customer Service
Pre-Sales &
Solutions
Account Manager
Strategic Account Director
Common Roles
Global Account Director
Strategic/ Global
Accounts
National account manager Operations-◦ 5 / 10 accounts per head◦ Gets credit for sales made nationally◦ Travels across geographies
Approach◦ Customer industry needs◦ Process knowledge◦ Customer behavior and aspirations ◦ Increase wallet-share (up-sell, sell additional
services/products)◦ Value selling◦ Long Sales Cycle◦ Bulk business
National account manager
Operations-◦ 70 / 100 accounts per head◦ Mix of national and local accounts◦ Liaison with local support teams of other geographies for
fulfillment and assurance
Approach◦ Customer industry needs◦ Process knowledge◦ Value selling◦ Market penetration strategy (replication of success stories)◦ Run-rate business◦ Short- sale cycle
System Integrator/
Partner Relations
Marketing operations
Projects DeliveryFinance
Post-Sales &
Customer Service
Pre-Sales &
Solutions
National Account Manager
Regional Sales Head
National Sales Head
High-Touch/ Mid-Market
Accounts
Support Functions
OEM Company
Channel Partner
SME Customer
• Training
• Empowerment
• SLA/ Business
• Service – L2/ L3
• Consulting
• Sales
• Service – L1
• Consulting
Direct Touch
• Strategic Integration
• Marketing
C-Sat, Perception of partner, Brand value,
High frequency sales update (daily)
System Integrator/
Partner Relations
Marketing operations
Projects DeliveryFinance
Post-Sales &
Customer Service
Pre-Sales &
Solutions
Account Manager
Regional Sales Head
National Sales Head
SME
Accounts
Support Functions
Channel/ Partners
Distributor/Stockiest/MTO
Territory Manager/ Zonal structure based on geography
Brand creation thru mass media
Feet on street/ retail reach
Promotions ◦ Customer pull plans and schemes◦ Distributor/dealer push plans and incentive schemes
Price Driven, premium thru product differentiation and positioning
Place – availability at customer convenience
Product – flavors/ denominations
Tight MIS and cash flow management
Stringent monitoring and continuous availability of committed service level
System Integrator/
Partner Relations
Marketing Operations
Projects Delivery
Finance
Contact Centre
Pre-Sales &
Solutions
Territory Account Manager
Regional Sales Head
Common RolesNational Sales Head
Consumers
Distributors/ Stockists
Retails/ Shops/ Point of Sale
top related