marketing by business types presentation created by mag. maria peer based on the lecture bbm1 –...

Marketing by Marketing by Business TypesBusiness TypesPresentation created by Mag. Maria Peer based on the Presentation created by Mag. Maria Peer based on the lecturelecture

BBM1 – MarketingBBM1 – MarketingMag. Andreas ZehetnerMag. Andreas ZehetnerFH Steyr

Mag. Maria PeerMag. Maria Peer 22

Marketing by Business Marketing by Business TypesTypes Transaction processes of industrial products Transaction processes of industrial products

and services are very heterogenousand services are very heterogenous Example: Example: selling standardized screwsselling standardized screws which which

are regularly sold to the same customer (eg. are regularly sold to the same customer (eg. integrated supplier to the automotive integrated supplier to the automotive industry) is to be treated differently to the industry) is to be treated differently to the

selling of complex waste water plantsselling of complex waste water plants with with high investment volume and its significantly high investment volume and its significantly higher risk of making a wrong decision. higher risk of making a wrong decision.


B2B MarketingB2B Marketing

The most close-to-the-market The most close-to-the-market business function cannot provide business function cannot provide the same programs and tools for the same programs and tools for these different tasksthese different tasks

Marketing literature provides Marketing literature provides certain typologies for B2B certain typologies for B2B companiescompanies


Backhaus – defined four Backhaus – defined four different types of different types of businessbusiness

Supplier to

industry

Investment

Systems

Products

+

-

- +

Depend

cency

betw

een

transa

ctions

Number of potential customers


Backhaus – 4 different Backhaus – 4 different types of business - types of business - systemssystems The vertical axis indicates if the The vertical axis indicates if the

transactions are independent transactions are independent from each other or if they are from each other or if they are dependent. These can be found dependent. These can be found when customers decide on a when customers decide on a certain certain systemsystem, but do not buy all , but do not buy all relevant items at once. relevant items at once.


Backhaus: 4 different Backhaus: 4 different types of businesstypes of business supplier to industry:supplier to industry: The The

dependency is also strong because dependency is also strong because of suppliers regulations and quality of suppliers regulations and quality standardsstandards

The horizontal axis shows the The horizontal axis shows the potential number of customers. Very potential number of customers. Very low in the case of low in the case of supplier to supplier to industryindustry or with or with investment goodsinvestment goods – – steel plants, ships oil platformssteel plants, ships oil platforms


Backhaus: 4 different Backhaus: 4 different types of businesstypes of business With With productsproducts or or systemssystems: the : the

number of potential customers number of potential customers can be very high. Eg. in the can be very high. Eg. in the construction equipment industry construction equipment industry this can be the whole sector.this can be the whole sector.


Product businessProduct business

Markets in the product business Markets in the product business are frequently rather anonymous. are frequently rather anonymous. The buyer is free. There is no The buyer is free. There is no dependence on previous dependence on previous purchases. purchases.


Specific marketing Specific marketing considerations for considerations for product businessproduct business Product policy: product development and Product policy: product development and

innovation, range of productsinnovation, range of products Prices: to find the right competitive price – in Prices: to find the right competitive price – in

relation to the benefit provided, define the relation to the benefit provided, define the price strategy carefullyprice strategy carefully

Distribution policy: different sales structures, Distribution policy: different sales structures, after sales serviceafter sales service

Communication policy:Communication policy:increasing trust in increasing trust in the product supplied (brand) the product supplied (brand) providing providing sufficient information sufficient information establishing and establishing and maintaining customer relationship maintaining customer relationship communicating and ensuring competitive communicating and ensuring competitive differentiation differentiation


System businessSystem business

Also confronted with a widely anonymous Also confronted with a widely anonymous market. But in contrast to product business market. But in contrast to product business there is a connection between purchases. The there is a connection between purchases. The customer has a certain benefit when he customer has a certain benefit when he decides to stay with the same supplier. decides to stay with the same supplier.

System business is found typically in the field System business is found typically in the field of information technology. The decision to buy of information technology. The decision to buy a certain server system, a software package a certain server system, a software package influences later decisions dramatically. influences later decisions dramatically. Customer is uncertain. MarketingCustomer is uncertain. Marketingreduce reduce uncertainty by standardization or increasing uncertainty by standardization or increasing the customer‘s confidence.the customer‘s confidence.


Specific marketing Specific marketing considerations for considerations for system businesssystem business Product policy: supplier has to consider compatibility Product policy: supplier has to consider compatibility

with his customers existing system (releases in IT-with his customers existing system (releases in IT-business)business)

Price: introductory offers – higher prices with later Price: introductory offers – higher prices with later buyersbuyers

Distribution: due to complexity of goods – some Distribution: due to complexity of goods – some distribution channels cannot be used, personal sales distribution channels cannot be used, personal sales with experienced sales people with experienced sales people service options, service options, network, after sales servicesnetwork, after sales services

Communication: specifies due to interdependenceCommunication: specifies due to interdependence Increasing customer‘s confidenceIncreasing customer‘s confidence Proving the customer to have made the right decisionProving the customer to have made the right decision Reducing the feeling of risk – provide references and Reducing the feeling of risk – provide references and

testimonialstestimonials


Supplier to industry Supplier to industry businessbusiness Single customers Single customers long term long term

relationship, customer becomes relationship, customer becomes dependentdependent

Substitution of business partners Substitution of business partners is difficult = heavy-weight-key is difficult = heavy-weight-key account managementaccount management


Supplier to industy Supplier to industy businessbusiness Single customer focus:Single customer focus: highly specialised highly specialised

solutions, causes advanced interaction and solutions, causes advanced interaction and integration of processes on both sides. The integration of processes on both sides. The customer influences product research and customer influences product research and development. 3 main quality aspects: development. 3 main quality aspects: product, lifespan, availabilityproduct, lifespan, availability

Integration of product featuresIntegration of product features – products can – products can be used only by one customerbe used only by one customer

Integration of lifespan: Integration of lifespan: eg. LCD-panel of an eg. LCD-panel of an industrial testing device – if it drops out it industrial testing device – if it drops out it would be more economical to replace the would be more economical to replace the whole item; the quality of seats of cars has to whole item; the quality of seats of cars has to be guaranteed for the whole car‘s average be guaranteed for the whole car‘s average lifespanlifespan


Supplier to industy Supplier to industy businessbusiness Integration of availability: Integration of availability: the more the more

OEMs (Original Equipment Manufacturer) OEMs (Original Equipment Manufacturer) reduce their own vertical range of reduce their own vertical range of manufacture – the more important it is manufacture – the more important it is to provide just in time availability to provide just in time availability influences the production and logistics influences the production and logistics processprocess

Longterm interdependency: Longterm interdependency: products are products are standardized for the single customerstandardized for the single customer


Specific marketing Specific marketing considerations for considerations for supplier to industry supplier to industry businessbusiness No hit-and-run situations possibleNo hit-and-run situations possible Product policy <- customerProduct policy <- customer Price – regulated by contract and Price – regulated by contract and

determined by longterm determined by longterm agreementagreement

Communication – most important Communication – most important in the initial phase or loosing the in the initial phase or loosing the customercustomer


Business of selling and Business of selling and establishing industrial establishing industrial plantsplants Focus: single customer – very fewFocus: single customer – very few The complexity of the product is much higherThe complexity of the product is much higher The production and delivery process + product = The production and delivery process + product =

result of project specific development and result of project specific development and manufacturingmanufacturing

Decision process – complicated, buying center is Decision process – complicated, buying center is more complex, average duration of negotiations more complex, average duration of negotiations quite longquite long

External consulting engineers External consulting engineers selling center – selling center – more complex – frequently more suppliers share a more complex – frequently more suppliers share a project (consortium, syndicate), coordination project (consortium, syndicate), coordination challengechallenge

Interdependence between suppliers and customers Interdependence between suppliers and customers is limited to warranty and service contracts. is limited to warranty and service contracts.

Lifespan 30 years and more.Lifespan 30 years and more.

marketing by business types presentation created by mag. maria peer based on the lecture bbm1 –...

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