MARKETING PRACTICES

B2B Sector 2014

Conceptual Framework
1. Definition
2. B2B : Key Segments and Analysis
3. Stages in Buying and Sales Cycle
4. Sales and Marketing Roles in B2B
5. Characteristics of todays B2B Sales person
6. Key Players
7. Whos Who
8. Careers in B2B




B2B is P2P
B2B = Business to Business
B2B = Organisational Buying & Selling
B2B = Industrial Buying & Selling
B2B = Corporate Sales / Selling
B2B = P2P = Person to Person
Institutional Sales /Selling is the same concept as
B2B except that Institutions are not businesses;
they are hospitals, schools, colleges etc.

1. What is B2B /Organisational Buying /
Industrial Buying?
It is the decision making process by which
organizations establish the need for purchasing
products and services and identify, evaluate and
choose among alternative brands and suppliers


More money & items are involved in selling to
Business buyers then selling to Consumers



1. What is B2B?
Business market consists of all organisations that
acquire goods & services used in the production of
other products and services that are sold, rented
or supplied to others

Before goods reach end consumers through
retailer; B2B activities take place - manufacturing
of goods, distribution, transport of goods
1. What is B2B?

Some Companies are into both businesses (B2B &
B2C (End Consumers)) Pepsi, Coke,
Automobiles, Electrical & Electronic equipments
(A.C., TV sets, Computers etc.)



2. Key Segments in B2B
refer to link
http://www.mynewsdesk.com/in/view/pressrelease/exploring-top-
10-business-sectors-in-india-447772
Agriculture & related (Forestry, Fisheries)

Manufacturing (Construction, Mining etc.)

Banking, Financial Services and Insurance

Distribution and services (Communication
etc.)


Key Segments in B2B
Agriculture
Company - Dupont India
Products - Crop protection, Animal health solutions,
Pioneer seeds and Inoculants and Agricultural packaging
Forestry
Lumber (timber, wood), paper, honey, rubber, bamboo,
medicinal plants and lots more
Fisheries
India is the 3
rd
largest producer of fish in the world
Mining
Cos: Coal India Ltd., Hindustan Copper Ltd., Akashkinari
coal mine, Amarkonda-Murgadangal coal, Amlai coal
mine




1. Food & Beverages

Changing lifestyles and
eating habits

Growth 7.5% till 2013 up to
a size of 330 billion dollar
industry

Most of the F & B segments
are increasing in revenue,
highest being the alcohol
segment

Growth was 14.1% from
2009 to 2010
It was a $ 67 billion
industry in 2010
Increased by 11% till
2013
IT services, software and
hardware have
contributed greatly to the
increasing rate of IT
2. IT Services
3. Health Industry

Experiencing growth -
huge difference in the
cost of healthcare in
Indian and Western
countries

Estimation of growth
from $ 75 billion in
2012 to $ 150 billion
in 2017

4. Telecom Industry


India holds the 2
nd

rank as the telecom
network provider

Estimation of growth
rate is at 11% from
2010 to 2014

5. Textile Industry


Globally reputed B2B
sector

The total textile exports
from India contribute to
27% of total foreign
exchange

Main segments - Cotton,
silk, jute, woolen, hand-
crafted and readymade
textiles

6. Auto Industry


Consistent growth rate of
20% since 2000 and
estimated to continue till
2015

Main contributors to
growth Engine parts,
drive transmission,
steering parts,
suspension and braking
parts and electrical parts

7. Construction Industry


Contribution 11% of
Indias total GDP
It is an exporter of
various raw materials
to the world
China is the biggest
consumer of steel
exported by India
Also Cement industry is
a major growth
contributor

8. Handicrafts


Indian handicrafts enjoy a
great demand in US, UK and
Australia

Major contributors which
get foreign exchange worth
3 billion dollars to the
country Wooden
handicrafts, jewellery, hand
printed textiles and
crocheted goods

9. Energy


Major contributors
both renewable and
non renewable
energy sources

Natural gas, LPG and
solar energy

10. Banking and Insurance


Major contributors
Investment banking,
mortgage and
insurance sector
Examples of Business Practices in B2B (examples from Ref.
Book except McDonalds from net)
Example 1 : Few tyre cos. viz. JK tyres, Apollo tyres,
MRF, Bridgestone etc. selling to handful of major
automakers who are large buyers

Example 2 : Critical and close relationship of buyers
and sellers such as McDonalds and Mrs. Bectors
foods, customization and confidentiality of Recipe
formulations


Examples of Business Practices in B2B
Example 3: Also Mahindra & Mahindra developing
and designing the Scorpio along with its few
trusted suppliers from early stages

Example 4 : Suppliers such as the Japanese firm
offering turn key solutions for the Cement Factory
bid to Indonesian Government

Example B2B
V/S B2C
IT B2B or B2C BPO / KPO B2B or B2C
Hardware B2B & B2C Voice Process B2B
Software B2B & B2C F&A B2B
TES B2B
Medical
Under righting
B2B
Networking B2B & B2C T&E B2B
IT & BPO/KPO
3. Stages in the Buying Process
Order Routine
Specs
Sales Cycle
B2B is P2P
- Ability of the salesperson to sell effectively to the
Buying centre
- Reputation in the Market is critical for B2B players
therefore B2B is person to person
- Selling only when it is best fit for the buyer build
reputation

Chacs. of Todays B2B Sales Person
Eco System
Understands the
Segment
Understands
Business
Has Built his
own Eco system
Intrinsic
Attitude
Ability to scale
low or high C
level executives
Relationship
Driven

Acquired skills
Spot and
Opportunity
Judgment
Understand and
be able to
articulate
VALUE
Communication
Skills

Pointers to Exercise
Person Role Type of Buyer
CEO Knows the impact of CRM to his
Business and what others are doing
in similar businesses
Influencer
Operations Head US Key Understanding of Region
Customer
Influencer
Operations Head UK Key Understanding of Region
Customer
Influencer
Operations Head Latin America Key Understanding of Region
Customer
Influencer
SVP Marketing Understands overall what is
important for their customers
Approver
CIO Will evaluate from IT and Business
perspective. Which solution is most
relevant
Approver
SVP Procurement Purchase procedure. Commercial
process adherence
Indirect Influencer
IT Group Head - CRM Main evaluator. He will call for
offers, evaluate, draw comparative
statements etc
Recommender
Procurement Head IT Services Main commercial evaluator Indirect Influencer
SVP Finance Business Models. How does the cash
flow impact the company. What will
be the benefits etc
Financial Sponsor
4. Sales and Marketing Roles in B2B
Customer Interaction Responsibility
Prospecting (identifying, sifting and
sorting)
Marketing
Conversion (raising demand and
lowering prospective client
barriers / building trust)
Marketing
Creating a unique buying experience Sales with support from Marketing
Saying thank you Marketing with support from Sales
Retention / communication (back to
the top of the funnel)
Marketing
5. Key Players India & International
1. Fedex
2. Samsung
3. Cemex
4. IBM
5. Siemens
6. Lanxess
7. Lenovo
8. Tata Steel
Fedex
FedEx Corporation, originally known as FDX
Corporation, is an American global courier
delivery services company headquartered in
Memphis, Tennessee
Fedex Express
FedEx Express is a cargo airline based in Memphis
Tennessee, United States

World's largest airline in terms of freight tons flown
and the world's fourth largest in terms of fleet size

Subsidiary of FedEx Corporation
Fedex Express
Delivers packages and freight to more than 375
destinations in nearly every country each day

FedEx Express is the world's largest express
transportation company

United States Postal Service - USPS continues to be
the largest customer of FedEx Express
IBM
International Business Machines
Corporation or IBM
American multinational technology and consulting
corporation
HQ Armonk New York, United States
IBM manufactures and markets computer hardware,
software, offers infrastructure, hosting and
consulting services in areas ranging from mainframe
computers to nanotechnology
IBM
#2 largest U.S. firm in terms of number of
employees (433,362) (2012 Fortune)
#4 largest in terms of market capitalization
#9 most profitable
#19 largest firm in terms of revenue
12 Research laboratories worldwide
2013 - most patents generated by a company for 20
consecutive years



IBM
Employees have won - 5 Nobel Prizes, 6 Turing
Awards, 10 National Medals of Technology and 5
National Medals of Science

Famous inventions by IBM include the automated
teller machine (ATM), the floppy disk, the hard
disk drive, the magnetic stripe card, the relational
database, the Universal Product Code (UPC), the
financial swap, SABRE airline reservation system,
DRAM and Watson artificial intelligence

SIEMENS AG
Siemens AG is a German multinational
engineering and electronics conglomerate company
headquartered in Munich, Germany
It is the largest Europe-based electronics and
electrical engineering company
Siemens' principal activities are in 5 main divisions:
Industry, Energy, Healthcare, Infrastructure &
Cities, and Siemens Financial Services (SFS)
Siemens and its subsidiaries employ approximately
360,000 people across nearly 190 countries

SIEMENS INDIA
Energy - Solutions for all energy needs from a
single system to complex turnkey solutions for oil &
gas, power generation, transmission and distribution

Healthcare - Siemens offers the most comprehensive
portfolio of diagnostic and therapeutic solutions
bringing together advanced laboratory, imaging and
healthcare IT systems
SIEMENS INDIA
Infrastructure - End-to-end products, systems and
solutions for industrial and building automation,
infrastructure installations

Industry - Automation technology, project
management, engineering and software installation,
commissioning, after-sales service, plant
maintenance and training
TATA STEEL
Tata Steel Limited (formerly Tata Iron and
Steel Company Limited (TISCO))
Indian multinational steel-making company
HQ - Mumbai, Maharashtra, India
Subsidiary of the Tata Group
12th-largest steel producing company in the world
Annual crude steel capacity of 23.8 million tons
Largest private-sector steel company in India
measured by domestic production

Institutional and Government Markets
Govt. Of India is the largest Customer in India
Purchasing for Defense, Railways & various other
departments
Central Purchasing Org. of Govt. Of India - DGS&D
The Director General of Supplies and Disposals
Suppliers submit Tenders & Bids
Qualified Suppliers enter Rate contracts
Product characteristics specified So Product
differentiation, advertising & personal selling does
not matter

6. Whos Who of B2B
Natarajan
Chandrasekaran or N.
Chandra
CEO and MD of Tata
Consultancy Services
Chandra took over as CEO
on October 6, 2009 prior
to which he was COO and
Executive Director of TCS

One of the youngest CEOs
of the Tata Group
2013, his income was 11.6
crore per annum

6. Whos Who of B2B
Nyenrode Business
University, Netherlands
conferred Chandra with
Honorary doctorate for
his significant
contributions toward
business and society
NDTV Business Leader of
the Year IT, 2012
Top 25 most influential
consultants in the world,
2006
AIMA Business Leader
award for 2011


Tata Steel, MD
T. V. Narendran
Education B.Tech., MBA
Alma mater REC Trichy
IIM Calcutta
Managing Director of Tata
Steel (India and South East
Asia), one of the largest
steel producers in the
world
Refer to
http://forbesindia.com/blog/busi
ness-strategy/cyrus-mistry-
chooses-tv-narendran-as-tata-
steel-md/

Siemens India, CEO
Sunil Mathur
CEO on November 1 and will
also become MD & CEO of
Siemens from January 2014
He will be replacing Armin
Bruck who will relocate to
Singapore taking charge as CEO
of the regional office there
Mathur, a chartered accountant
by training from New Delhi's
Institute of Chartered
Accountants of India (ICAI),
joined the company as its
internal auditor

Siemens India, CEO
Worked across various
departments and roles - in
India, Europe and even in
Germany
Among the various finance-
related responsibilities he
held, includes being the
cluster CFO for South Asia,
CFO of Siemens BHEL JV and
director of business
administration of Siemen's
power generation services in
Germany

Careers in B2B
Business Development
Area Managers
Account Managers
Dealer Network Management
Selling spares and services
International Business Development

Marketing
Largely Events, Trade Shows, Trade Analysts etc.
New Product Launches, Branding
Product Management
Customer Service
Brand Store Management (specific)
TCS Case Study and Questions
TCS Case contains:
1. TCS Company profile
2. B2B Aspect : TCS Advantage
3. Example of TCS CCEM in the Government Sector
4. Questions:
What is the TCS Advantage?
Analyze the TCS Advantage, which is a TCS initiative
to provide focused and systematic service to its
clients, as a B2B practice
TCS Company Profile
1. TCS Co. Profile:
- their business, offerings, Lineage, Mission, Values,
Workforce, Portfolio of Services, Industries serviced,
Financial Information, Quality framework, Board of
Directors, Leadership team, Alliances, Subsidiaries,
you may also include Competitors, Market Share,
Recent happenings, Achievements, Awards,
International Clients, Countries operating in, etc.
B2B Aspect & Answers for Q1 & Q2
2. B2B Aspect in the Case
TCS Advantage:
- The 4 Models are developed by TCS as specific models
and standard operating procedures, which projects the
quality, expertise and dedicated efforts of TCS to service
its B2B Clients
TCS Advantage can be related to B2B sector practices
learnt in the lecture :
- sellers take great efforts to get a buyer / client, go to great
lengths to retain the client, offering turn key solutions,
services and customized services and the buyer seller
relationship is very close and critical, reputation in the
market matters
B2B Aspects in General
To Analyze a Company from the B2B sector angle you
can mention its clients, what products, services are being
sold, what is the use of those products, then the efforts
taken by the selling co. to open a key account, efforts
taken by the selling company to study the clients
problems / challenges / requirements and offer
customized, turn key solutions and services. Ability to
understand the clients obvious problems and unspoken
issues as well and offer solutions as business partners for
them, ethical practices, confidentiality provided etc. For
the buyer Cos. In B2B you can menti0n the long, cautious
and expert process of buying, long term associations
between buyers and sellers etc.

TCS Case Example of CCE Model
3. Example of TCS Customer Centric Engagement
Model in the Government Sector
- The TCS Advantage, expertise and dedication for
offering best fit solutions as a B2B sector practice is
reflected in the above example

Reference Book as follows & Links given on
respective slides where applicable
1. Definition
2. B2B : Key Segments and Analysis Refer to link given
on slide
3. Stages in Buying and Sales Cycle
4. Sales and Marketing Roles in B2B - from slides
5. Characteristics of todays B2B Sales person from
slides
Sub topics 1 to 5 from Book Marketing Management
A South Asian Perspective by Kotler, Keller, Koshy
and Jha - Chapter 7 Analyzing Business Markets
6. Key Players Internet / wikipedia
7. Whos Who Internet / wikipedia
8. Careers in B2B Inputs as given in class
9. TCS Case extracts taken from TCS website




THANK YOU