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Business (B2B) Marketing IFMR – PGDM II Yr. (2009-10) Module 1 Overview of Business marketing S.Balachandran July 2009
Learning Objectives ,[object Object],[object Object],[object Object],[object Object],July 2009 © S.Balachandran  of 37
Business Enterprises : Activities  July 2009 © S.Balachandran ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Either part of Output  OR facilitating the Transformation ,[object Object],[object Object],[object Object], of 37 B2B Transformation Processes 5 1 2 3 4 Consumer or B2B Markets
B2B Goods & Services July 2009 © S.Balachandran  of 37
Industrial Production Categories July 2009 © S.Balachandran  of 37
Business Services July 2009 © S.Balachandran  of 37
B2B Markets & Customers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],July 2009 © S.Balachandran  of 37
Some Indian B2B Enterprises ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],July 2009 © S.Balachandran  of 37
Value Equation July 2009 © S.Balachandran ‘ Product’ or ‘Service’ satisfies a ‘need’ or ‘want’ by providing ‘value’. Attributes/ Features BENEFITS VALUE NETT VALUE = BENEFITS - COSTS  of 37 VALUE DELIVERY SYSTEM
Value Creation & Delivery July 2009 © S.Balachandran  of  37
Marketing Strategy July 2009 © S.Balachandran  of 37 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Differentiation RECAP
Value Creation & Delivery System July 2009 © S.Balachandran Provide the  value Communicate  the value Understand  Value  Desires Select Targets Define Benefits/ Price Understand & Create the Value ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object], of 37
Providing the Value July 2009 © S.Balachandran Commu- nicate  the  value Choose  the  value Provide the Value Technology Design  Product Distribute Service Price Procure, Manu- facture ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object], of 37
Communicating the Value July 2009 © S.Balachandran Choose  the  Value Provide the Value Communicate the Value ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object], of 37
Value Expectations July 2009 © S.Balachandran  of 37 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Value Hierarchy – Product Levels July 2009 © S.Balachandran  of 37 CORE BENEFIT Fundemental Benefit customer is really buying BASIC PRODUCT Built around Core Benefit EXPECTED PRODUCT Attribute & conditions buyers Normally expect AUGMENTED PRODUCT Exceeds Customer Expectations POTENTIAL PRODUCT All possible augmentations & Transformations product might Undergo in future Customer Delight !
Framework for B2B Marketing July 2009 © S.Balachandran  of 37
Key Differences:B2B vs Consumer Marketing  July 2009 © S.Balachandran  of 37 MARKETING CUSTOMER MANUFACTURING External Environment Internal Environment External Linkage Internal Linkage Derived Demand Complex Buying Process Concentrated Customer Base Emphasis on Technology High Level of Customisation Made to Order
Nature of B2B Demand ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],July 2009 © S.Balachandran  of 37
Complexity of Buying Process ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],July 2009 © S.Balachandran  of 37
Concentrated Customer Base ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],July 2009 © S.Balachandran  of 37
Emphasis on Technology ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],July 2009 © S.Balachandran  of 37
High Level of Customisation ,[object Object],[object Object],[object Object],July 2009 © S.Balachandran  of 37
Differences in Emphasis : B2B vs B2C July 2009 © S.Balachandran  of 37
Nature of Products    B2B Marketing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],July 2009 © S.Balachandran  of 37
Nature of Products    B2B Marketing  (Contd.) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],July 2009 © S.Balachandran  of 37
Nature of Products    B2B Marketing  (Contd.) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],July 2009 © S.Balachandran  of 37
Distinctive Capabilities for B2B Marketing July 2009 © S.Balachandran  of 37 Supply Chain Management Mgmt. of Strategic Alliances Mgmt. of Hybrid Channels
Goals of Purchasing July 2009 © S.Balachandran  of 37
Total Cost of Ownership July 2009 © S.Balachandran Factors that drive total cost. Acquiring and managing costs. Quality, reliability over the life cycle. Value of product to firm/customers.  of 37
Procurement Development July 2009 © S.Balachandran  of 37 Source Negotiate Manage Info & Logistics Value Analysis & Complexity mgmt. Strategic Partnership
Segmenting the Buy July 2009 © S.Balachandran  of 37 KSFs ,[object Object],[object Object],Cost & Range Efficient Management of Info & Logistics Strategic Partnership
Procurement Processes ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],July 2009 © S.Balachandran  of 37
Government Procurement July 2009 © S.Balachandran ,[object Object],[object Object],[object Object],[object Object], of 37 ,[object Object]
Govt. Contracts ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],July 2009 © S.Balachandran  of 37
Govt. Procurement ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],July 2009 © S.Balachandran  of 37
Institutional Procurement ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],July 2009 © S.Balachandran  of 37

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B2B Marketing - Summary

  • 1. Business (B2B) Marketing IFMR – PGDM II Yr. (2009-10) Module 1 Overview of Business marketing S.Balachandran July 2009
  • 2.
  • 3.
  • 4. B2B Goods & Services July 2009 © S.Balachandran of 37
  • 5. Industrial Production Categories July 2009 © S.Balachandran of 37
  • 6. Business Services July 2009 © S.Balachandran of 37
  • 7.
  • 8.
  • 9. Value Equation July 2009 © S.Balachandran ‘ Product’ or ‘Service’ satisfies a ‘need’ or ‘want’ by providing ‘value’. Attributes/ Features BENEFITS VALUE NETT VALUE = BENEFITS - COSTS of 37 VALUE DELIVERY SYSTEM
  • 10. Value Creation & Delivery July 2009 © S.Balachandran of 37
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16. Value Hierarchy – Product Levels July 2009 © S.Balachandran of 37 CORE BENEFIT Fundemental Benefit customer is really buying BASIC PRODUCT Built around Core Benefit EXPECTED PRODUCT Attribute & conditions buyers Normally expect AUGMENTED PRODUCT Exceeds Customer Expectations POTENTIAL PRODUCT All possible augmentations & Transformations product might Undergo in future Customer Delight !
  • 17. Framework for B2B Marketing July 2009 © S.Balachandran of 37
  • 18. Key Differences:B2B vs Consumer Marketing July 2009 © S.Balachandran of 37 MARKETING CUSTOMER MANUFACTURING External Environment Internal Environment External Linkage Internal Linkage Derived Demand Complex Buying Process Concentrated Customer Base Emphasis on Technology High Level of Customisation Made to Order
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24. Differences in Emphasis : B2B vs B2C July 2009 © S.Balachandran of 37
  • 25.
  • 26.
  • 27.
  • 28. Distinctive Capabilities for B2B Marketing July 2009 © S.Balachandran of 37 Supply Chain Management Mgmt. of Strategic Alliances Mgmt. of Hybrid Channels
  • 29. Goals of Purchasing July 2009 © S.Balachandran of 37
  • 30. Total Cost of Ownership July 2009 © S.Balachandran Factors that drive total cost. Acquiring and managing costs. Quality, reliability over the life cycle. Value of product to firm/customers. of 37
  • 31. Procurement Development July 2009 © S.Balachandran of 37 Source Negotiate Manage Info & Logistics Value Analysis & Complexity mgmt. Strategic Partnership
  • 32.
  • 33.
  • 34.
  • 35.
  • 36.
  • 37.