business to business(b2 b) marketing
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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 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
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