Business to business(b2 b) marketing

BUSINESS TO BUSINESS(B2B) MARKETING

AMIT KUMAR BIHANI

INTRODUCTION

Its marketing of services and goods that help

other companies operate.

Its transaction between businesses.

Its volume is much higher than B2C.

Originally coined to describe the electronic

communication between businesses or

enterprises.

Eventually it came to be used in marketing,

describing industrial or capital goods

marketing.

DEFINITION

B2B marketing is “Meeting the needs of other

businesses, though ultimately the demand for

the products made by these businesses is

likely to be driven by consumers in their

homes.”

B2B marketing is organizational sales and

purchase of goods and services to support

production of other goods and services for

daily company operation or for resale.

COMPONENTS OF BUSINESS MARKET

Commercial Market.

Trade Industries.

Government Organizations.

Institutions.

SEGMENTING B2B MARKET

Demographic Segmentation.

Customer-based Segmentation.

Segmentation by End-Use Application.

Segmentation by Purchase Categories.

DISTINGUISH BETWEEN B2B AND CONSUMER GOODS MARKETING.

Points B2B Marketing Consumer Goods Marketing

Product Relatively technical in nature, exact form often variable.

Standardized form.

Price Competitive bidding for unique items.

List prices.

Promotion Emphasis on personal selling. Emphasis on advertising.

Distribution Relatively short, direct channels to market.

Product passes through a number of intermediate links.

Customer Relations Relatively enduring and complex.

Comparatively infrequent contact, relatively short

duration.

Decision making process Involves diverse groups of members.

Individual or household makes decision.

HOW B2B COMPANIES MAKE MONEY?

• Sales of products.

• Service and maintenance fee.

• Transaction fee and listing fee.

• Advertising.

B2B Efficiencies• Administration costs

• Search costs

• New markets

• Maverick purchasing (buying occurs outside the normal channel)

• Joint purchasing

• System integration (with the legacy system)

• Supply chain management (from push marketing to pull marketing)

• Collaboration (Outsourcing product design), joint channel of distribution

• Middlemen (the new service particularly for small business)

B2B’S ATTRIBUTES

Huge market opportunity

Financially light business model

Scalable

Acquisition cost effect

Sticky products

Multiple revenue stream

Efficiencies of B2B Electronic Marketplaces

• A survey conducted in spring 2000:

– Only 1% companies are conducting e-

business through their websites.

– 80% B2B processes are still manual, and

20% considered automated are actually not

yet.

SEVEN STRATEGIES FOR KEEPING YOUR CUSTOMER

1. Meeting and exceeding customer expectations

2. Customer service

3. Penetration marketing

4. Defection prevention

5. Continuous relationship selling

6. Loyalty programs

7. winback

CHALLENGES FACED IN DEVELOPING EFFECTIVE

STRATEGIES.

FACTORS MAKING B2B MARKET SPECIAL

B2B Markets have a more complex decision

making unit.

B2B buyers are more “Rational”.

B2B products are often more complex.

Limited number of buying units in B2B

markets.

B2B markets have fewer behavioral and

needs based segments.

THE RISK VALUE PURCHASING DECISION MAKING.High Value

High Risk.

Low Value

Low Risk

CONTI……….

Personal relationship are more important in B2B

markets.

B2B buyers are longer term buyers.

B2B markets drive innovation less than

consumer markets.

Consumer markets rely far more on packaging.

Sub brands are less effective in B2B markets.

Examples of B2B Markets.

THANK YOU