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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 MarketingProduct Relatively technical in nature, Standardized form. exact form often variable.Price Competitive bidding for List prices. unique items.Promotion Emphasis on personal selling. Emphasis on advertising.Distribution Relatively short, direct Product passes through a channels to market. number of intermediate links.Customer Relations Relatively enduring and Comparatively infrequent complex. contact, relatively short duration.Decision making process Involves diverse groups of Individual or household members. 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)
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 CUSTOMER1. Meeting and exceeding customer expectations2. Customer service3. Penetration marketing4. Defection prevention5. Continuous relationship selling6. Loyalty programs7. winback
CHALLENGES FACED IN DEVELOPING EFFECTIVE STRATEGIES. Challenges of Government Markets Challenges of Institutional Markets Challenges of International Markets
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 Basic raw Complex materials plantLow Risk High Risk. Paper Office clips insurance Low Value
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.