8/3/2019 B2B Marketing Recall

1/32

B2B Marketing

Chapter 7 (Kotler, Koshy, Jha)

Just to Refresh

8/3/2019 B2B Marketing Recall

2/32

Chapter Questions

What is the business market, and how does it

differ from the consumer market?

What buying situations do organizational

buyers face?

Who participates in the business-to-business

buying process?

8/3/2019 B2B Marketing Recall

3/32

Chapter Questions

How do business buyers make their decisions?

How can companies build strong relationships

with business customers?

How do institutional buyers and government

agencies do their buying?

8/3/2019 B2B Marketing Recall

4/32

Classification of Business

Business which Produce Goods

Businesses which Produce Service Business which Distribute Goods

Business which Facilitates Distribution of

Goods Business which Deal in Finance & Financial

Services

8/3/2019 B2B Marketing Recall

5/32

Classification of Industries

Classification based on the nature of activity

1. Extractive Industries

2. Genetic Industries3. Manufacturing Industries

4. Construction Industries

5. Service Industries6. IT Industries

8/3/2019 B2B Marketing Recall

6/32

CISCO Targets Businesses

8/3/2019 B2B Marketing Recall

7/32

8/3/2019 B2B Marketing Recall

8/32

Top Business Marketing Challenges

Expand understanding of customer needs

Compete globally as China and India reshape markets

Master analytical tools and improve quantitative

skills

Reinstate innovation as an engine of growth

Create new organizational models and linkages

8/3/2019 B2B Marketing Recall

9/32

Characteristics of Business Markets

Fewer, larger buyers

Close supplier-customer

relationships

Professional purchasing

Many buying

influencers

Multiple sales calls

Derived demand

Inelastic demand

Fluctuating demand

Geographically

concentrated buyers

Direct purchasing

8/3/2019 B2B Marketing Recall

10/32

Buying Situation

Straight rebuy

Modified rebuy

New task

8/3/2019 B2B Marketing Recall

11/32

Systems Buying and Selling

Turnkey solution

desired;

bids solicited

Primecontractors

Second-tiercontractors

System

subcomponents

assembled

8/3/2019 B2B Marketing Recall

12/32

The Buying Center

Initiators

Users

Influencers

Deciders

Approvers

Buyers

Gatekeepers

8/3/2019 B2B Marketing Recall

13/32

Of Concern to Business Marketers

Who are the major decision participants?

What decisions do they influence?

What is their level of influence? What evaluation criteria do they use?

8/3/2019 B2B Marketing Recall

14/32

Segmenting for Business Markets

Demographic

Operating Variable

Purchasing Approaches

Situational Factors

Personal

Characteristics

8/3/2019 B2B Marketing Recall

15/32

Copyright 2009 Dorling Kindersley (India)

Pvt. Ltd.

8-15

8/3/2019 B2B Marketing Recall

16/32

Steps in Segmentation Process

Needs-based segmentation

Segment identification

Segment attractiveness

Segment profitability

Segment positioning

Segment acid test

Marketing-Mix

Strategy

8/3/2019 B2B Marketing Recall

17/32

8/3/2019 B2B Marketing Recall

18/32

8/3/2019 B2B Marketing Recall

19/32

Sales Strategies

Small Sellers

Large Sellers

Key Buying

Influencers

Multilevel

In-depthSelling

8/3/2019 B2B Marketing Recall

20/32

Stages in the Buying Process:

Buyphases

Problem recognition

General need description

Product specification

Supplier search

Proposal solicitation

Supplier selection

Order-routine specification

Performance review

8/3/2019 B2B Marketing Recall

21/32

Buygrid Framework

8/3/2019 B2B Marketing Recall

22/32

Methods of e-Procurement

Websites organized using vertical hubs

Websites organized using functional hubs

Direct extranet links to major suppliers Buying alliances

Company buying sites

8/3/2019 B2B Marketing Recall

23/32

Vendor Analysis

8/3/2019 B2B Marketing Recall

24/32

Handling Price-Oriented Customers

Limit quantity purchased

Allow no refunds

Make no adjustments

Provide no services

8/3/2019 B2B Marketing Recall

25/32

Order Routine Specification

Stockless

purchase plans

Vendor-managed

inventory

Continuous

replenishment

8/3/2019 B2B Marketing Recall

26/32

Establishing Corporate Trust

and Credibility

Expertise

LikeabilityTrustworthiness

8/3/2019 B2B Marketing Recall

27/32

Trust Dimensions

Transparent

Product/Service

Quality

Incentive

Partnering

Cooperating

Design

Product

Comparison

Supply Chain

Pervasive

Advocacy

8/3/2019 B2B Marketing Recall

28/32

Factors Affecting

Buyer-Supplier Relationships

Availability of

alternatives

Supply market

dynamism

Complexity of

supply

Importance of

supply

8/3/2019 B2B Marketing Recall

29/32

Categories of Buyer-Seller

Relationships

Basic buying and selling

Bare bones

Contractual transaction

Customer supply

Cooperative systems

Collaborative

Mutually adaptive

Customer is king

8/3/2019 B2B Marketing Recall

30/32

What is Opportunism?

Opportunism is some form of cheating

or undersupply relative to an implicit or

explicit contract.

8/3/2019 B2B Marketing Recall

31/32

Marketing of Farm Output from Rural

Areas

Contract Farming Pepsi

Procuring from Cooperatives Amul

Use ICT (Information and CommunicationTechnology)for procurement

ITC

8/3/2019 B2B Marketing Recall

32/32

Marketing Debate

how different is B-to-B marketing?

Take a position:

1. Business-to-business marketing

requires a special, unique set of marketingconcepts and principles.

or

2. Business-to-business marketing is reallynot that different and the basic marketing

principles apply.