B2B Marketing.....................................................................................................................................1 Framework to support the process............................................................................

............................3 Business to business marketing strategy process.................................................................................4 Understand the business strategy......................................................................................................4 Environmental analysis....................................................................................................................5 Market analysis ................................................................................................................................5 Understand the customer. Determine business needs.......................................................................5 Understand the purchasing process..................................................................................................6 Understand the competition. Competitive analysis..........................................................................8 What to create in the analysis.......................................................................................................8 Designing the competitive intelligence system............................................................................9 Understand your company: self analysis .......................................................................................10 Understand the product. What do we sell?.....................................................................................10 Define the metrics to measure results.............................................................................................10 Identify markets and market opportunities.....................................................................................10 Segmentation and targeting............................................................................................................11 Formulate the positioning statement(s)..........................................................................................13 Select the competitive marketing strategy......................................................................................13 Product strategy..............................................................................................................................13 Price determination.........................................................................................................................15 Decide a channel/partnership strategy............................................................................................15 Identify the most suitable marketing communication mix.............................................................15 Structure the integrated marketing communication strategy..........................................................15 Prepare the marketing plan.............................................................................................................16 Marketing operations......................................................................................................................17 Measure the results.........................................................................................................................17

B2B Marketing
One way to understand quickly the idea of B2B marketing is to highlight the differences between business marketing and consumer marketing. Consumer marketing belongs to everyday life, in the sense that everybody is exposed to it, and so its concepts may be more intuitive. A comparison with B2B marketing may help udbnerstanding quicker what B2B marketing is about. Compared to consumer marketing, B2B marketing: - emphasizes much more the relationship between buyer and seller. The purchases in companies are often too critical and important to always shop around. - Gives greater importance on personal selling. Often the purchasing processes are strategic for both buyer and seller, resulting in processes where the sales force interacts with different players in the buying organisation. Consultative sales of customize solutions often takes place instead of straight selling of out of the box products.

- - The distribution channels are shorter. but each of them has generally a purchasing power that is far superior than each individual customer. This is possible because customers tend to be bigger. means that different departments may have different needs and interests to be fulfilled. The same product may be advertised in different ways: low cost to finance. great for consumers to marketing and high tech innovative to the technology department. richer in budget and fewer than consumers. There are fewer customers. . The complexity of the buying process and the inclusion of several people in the process. The promotional strategies needed are unique. Often a manufacturer can relate directly with the customers or the steps in distribution are relatively few. often at different level in the organisation and coming form different functions.

Framework to support the process Feed into strategy Feed into strategy Understand Business Strategy Market analysis. Identify markets or macro segments Unveil market opportunities Understand the environment where the company operates PESTEL and industry analysis Segmentation Understand the company Select the competitive strategy Understand the product Channels and partners strategy Positioning Understand the competition Price strategy Understand the customer and business needs Understand budget Marketing communication strategy Product strategy Understand the purchasing process CRM strategy Analysis internal Analysis should help answreing the questions Why Who What How How much Brand strategy Strategic customer relationship strategy Analysis External Sales strategy Strategy Prepare the marketing plan (action plan) Manage campaigns Manage Web Site and content Manage Agencies Manage CRM Produce collateral Manage trade shows Manage relationships Support sales Manage product lifecycle Operations Market share Segment share Revenue Profit Measure .

functional areas strategies . substitute for . profit margins.analysis and information gathering . invite to try products. focus marketing on delivering a services/support biased message and provide several means to allow customers to communicate to the company and vice versa.Business to business marketing strategy process There are 4 main phases.put the strategy in action / operations . For instance a cost leadership – operational excellence business strategy will drive a marketing strategy that aims to price sensitive consumers. educational. skills and synergies Define how revenue targets can be accomplished: New customers Marketing for newbuys Advertising: detailed. which are not necessarily sequential. delivered with minimal difficulty or inconvenience. share expansion – try to defend or increase market share unless you are a small business – defend market share Identify the strategic alternatives: . Which are the goals in terms of revenue.strategy development and marketing plan preparation . market share? Which strategy the company wants to pursue? Cost leadership Differentiation Focus strategy Which flavour to give the strategy? Operational excellence Product leadership Customer intimacy How do the company wants to implement the strategy? Market leader Market challenger Market follower Market nicher The marketing strategy has to be formulated according to the strategy to follow. Decide mark strat goals: market expansion. . A customer intimacy strategy will drive a lot of CRM attention. builds messages emphasizing cost savings and positions the company as a provider of reliable products or services at competitive prices.assets.measure the results Understand the business strategy One fundamental insight for the development of a marketing strategy is to understand the business strategy of the company or the strategic business unit (SBU).product market investments strategies .

hospitality events at trade shows Churn reduction CRM techniques Anticipate customer needs Lock in customers increasing services and giving complimentary services that are attached tightly to the products and services sold Selling: protect relationship with current customers. key success factors. special trade-in prices Existing customers up-sell Marketing for straight rebuys Environmental analysis PESTEL analysis Market analysis Size. cost structure. project growth. with offers. profitability. Understand the customer. trends. Determine business needs This helps responding to the question why? . entry barriers. distribution systems.old method Promotion: use demonstrations at trade shows to show how it works Offer free trial demonstrations Selling: heavy emphasis in understanding customers’ needs and showing how new product satisfies needs better than old methods Adv: Use reminder advertising Build image for the company Promotions: hospitality events at trade shows Selling: automate the purchasing process Existing customer cross-sell Competition switch overs Market for newbuys Advertising: use comparison advertising to show differences between your product and similar products Promotions: customer site demonstrations.

Any party the company sells to in the value chain is a customer. In other words.flexibility . retailers. Types of business customers are usually OEMs.customer support.technical specifications . Methods: .partners .services and support .joint development and testing . message and media to reach the targets. the organisational buyer behaviour and the composition of the buying centre for each target segment.joint product management . This is essential to target the marketing efforts properly. The purchasing process buy-grid gives a general idea of the steps which an organisational buyer go through: • Need recognition . Government. Within an organisation it is possible to find different types of customer. Users.installation and deployment . Different behaviours lead to different strategies to be adopted in terms of positioning. Institutions and Industry distributors.professional services .trust .data mining of existing customers (why they purchased) . This leads to a the segmentation granularity that is often quite high in B2B markets (micro segments vs macro segments) The other imperative is finding business needs/personal needs for each target segment.customization . consumers. who differs for business needs and personal aspirations. DMP. Why an organisation should buy the products I produce/distribute? Customers may be organisations but eventually it always the people within the organisation who make decisions and buy. Customers may be distributors.risk reduction Understand the purchasing process In B2B marketing it is crucial to understand well the purchasing process.product deployment or installation . materials management Relationship benefits .quality Process benefits .B2B marketing requires a deep understanding of who the customer is and what are their business needs.MIS.customer feedback via web and sales force . Customers may perceive 3 types of benefits: Functional benefits .reliability of supply .focus groups .surveys . marketers must be aware of the DMP (decision making process) and DMU (decision making unit).customer visits .cost of transport .

The process should be taken as standard because it varies a lot depending on the situation (new buy. minimize risk. their influence is limited to only few stages. advertising in marketing magazines may be not completely clever. market and environmental. the more fragmented is the buying centre over time. Risk perception can be lowered by information. Attitude toward risk. Those factors can be broken down in 4 main categories: individual. promotion. the more people are involved in the buying centre fro short period of time. If a decision involves a number of people who move in and out over time. competition and customer availability (Porter 5 forces). Company policies and purchasing guidelines: minimize cost. trials and demonstrations. This time fragmentation is an important variable to be understood by the marketer. department or area. sequential evaluation o RFPs: open/closed bids. personal satisfaction…) Valence of reward. The buying centre includes members of the organisation who play any of the seven roles in the DMP: • Initiators • Users • Influencers • Deciders. straight rebuy. availability and importance of the supply. organisational. the value attached to a reward. Time dimensions.• • • • • • • Product definition and specification Development of procurement strategy o make or buy? o formation of buying center! o specify potential vendors o design sourcing system Search/qualification of potential sources o Simultaneous vs. Individual factors: Experience. that is people who authorize the purchase • Buyers. people who have the formal authority to select • Gatekeepers. new buy VS straight rebuy Choice of reward (salary. Organisational factors: Roles in the buying centres. that is people who decide on product requirements • Approvers. If a marketing manager participates only marginally to the buying process. guarantee availability. Environmental factors. DMU. Loyalty leads to trust. modified rebuy) and organisation (different organisations have different DMPs). coaches and enemies. PEST factors Market factors. minimize TCO.final negotiations Design of an order routine (contract) Order Performance feedback and evaluation. assure the correct level of quality. existing vendors Selection of suppliers . Rewards are not similar Probability perception: how probable to the buyer is that engaging in the buying process this will lead to the expected reward . Risk is also lowered by loyalty. Horizontal means the degree of people involve in the buying process coming from different departments or functions. Decision change depending on availability of suppliers. there are many factors that are playing an important role during a purchase decision. At the level of organisational buyer behaviour. Vertical and horizontal dimensions: vertical means the degree of people involved in the buying process from top to bottom in the same division.

influencers. The targeting decision is also very much influenced by the horizontal and vertical dimensions mentioned in the above framework. patterns that enable marketing managers to create marketing strategies. example discount) VS defensive strategies (minimize loss) The individual decision passes through 4 main mental stages: . In the case of buying centres or when. NOTE: New buys = all steps are taken. as often happens. in more revenue and less cost for the company. the purchasing process involves more people with a different cross-functional degree.Reward-measurement: buyers are motivated by both intrinsic rewards (reward people give to themselves like satisfaction) and extrinsic rewards (given by the organisation like salary and promotion) Motivation (put effort on the purchase) = valence (degree of importance of the reward) x probability (perception that effort put in the purchase will lead to accomplishment of performance outcomes that will in turn lead to the desired rewards) For marketing this means understanding the valence and act on the perceived probability.selective attention. However. What to create in the analysis.selective perception. The former are concerned with performance specifications while the latter are worried about costs. consult different media or sources of information). This is concerned with determining who participate to the decisions and work to satisfy the needs of the participants. Role orientation: self orientation VS company orientation Risk orientation. if in the buying process of an industrial product. Understand competitor’s: Strategies Objectives Financial situation Products . it is the process that causes people to interpret new information in consistent manner with what they already know . watch. For instance. offensive (maximize gain. The more the horizontal dimension is important the more the marketer needs to target different groups within an organisation and this may lead to a greater marketing effort (people in different functional roles read. A vendor would create marketing communication campaigns aimed at the engineers separate from those campaign aimed to upper management. increasing buyer experience or knowledge. that means keeping in mind only the information thought important. within the selective media the buyer pays attention only to some information .selective retention. demonstrating to upper management that the product sold at a premium price it improves performance so much to result. The marketer may use a similar framework to combine buyers into groups and recognize buying patterns. the decision may involve technical engineers and upper management. emphasis on product definition and development of product specifications Modified re-buy = less emphasis on product definition and more emphasis on seach and evaluation of suppliers Straight rebuy = need recognition and purchase are the only 2 steps undertaken Understand the competition. ultimately. marketers may want also to influence who might participate to the buying process. This will help deciding which message to advertise/promote and where to advertise/promote. gatekeepers. For instance. controllers and purchasing agents. in general. Competitive analysis. the marketer needs to understand who are (which roles in the industry/market) the decision makers.selective exposure where the buyer select media that is likely to include information for relevance to solve her need .

Perceptual Maps are strategic tools to understand how competitors in an industry are perceived by customers on key product dimensions • Used mainly for: – Segmentation and Positioning – Designing differentiation strategy – Identify new product opportunities – Avoid cannibalization • Output: – Identifies perceptual dimensions along which consumers evaluate products in the category – Identifies the location of brands along these dimensions – Identifies consumers’ “ideal points” (= segments).Strengths and weaknesses How to compete Designing the competitive intelligence system Identify sources of information Sales force (intelligence audit within the company) Channels and partners Suppliers Market research firms Trade shows (using fake business cards…) Trade associations Annual Reports and SEC Filings of companies Former competitors’ employees Internet (non only competitor web sites but also news. Check job ads to see who competitions is hiring Track guest speakers at main conferences Monitor the formation of business contracts and alliances Find about new business practices that save competitors money Follow changes in pricing Follow technological advances in emerging markets Product Spec Sheets and other company literature distributed at trade shows. • Limitations: – Static (descriptive) – Interpretation may be subjective – Aggregation Two approaches . blogs. Radio. Understand how competition is perceived by customers. trade associations. forums. etc Track the job changes of experts in the sector. industry trade web sites. social media) Check patents Enrol to newsletter. This would involve all types of communication mediums: TV. conferences. Collect the data Evaluate and analyzing the data Disseminating information Disseminate information where it is needed. Business Magazines. and other events. webinars Speeches by executive management that provides intelligence about future strategies of the Company. Perceptual mapping. trade show websites.

What are their features and how can we relate those features to customer needs. - Determinants of strategic options: - SWOT of company and product(s) Strategic problems Employee attitude and performance Capabilities and constraints Financial resources and constraints Staff resources and constraints Understand the product. What is the value proposition of the product? Can we measure the benefits that the solution brings to customers? How can we differentiate? Understand the position in the product lifecycle Collect customer/sales feedback. Define the metrics to measure results Define the metrics . for each product (product line) understand where we are in the product lifecycle.implementation (where and how) Identify markets and market opportunities .Type . What do we sell? Understand the products we sell.• Compositional (uses product attributes) – obtain “important” product attributes (focus groups) – obtain ratings on attributes (survey) – obtain “relevant” attributes (factor analysis) • Decompositional (uses holistic evaluations) – obtain perceived distance measures between products – compose map (multidimensional scaling) Benchmarking Understand your company: self analysis This is concerned with identifying: performance analysis. like profitability sales volume market share customers and customer satisfaction product quality product roadmap relative cost product portfolio.

departments within companies. areas within departments or roles....This is concerned with finding new opportunities for the company to sell their products. so that the best customers can be treated differently in marketing activities from less profitable customers (who gets invited to the trade show? Who gets the best present at Christmas time?) New customers Find new opportunities in existing markets (this involves understanding the markets which have been more receptive of the products a company sells). simultaneous evaluation) Individual decision participants • Demographics • Psychographics – loyalty – attitude towards risk – self confidence.I.customers • type of buying situation • relationship to supplier (“in” or “out”.new customers Existing customers Existing customers opportunities may come from cross sell (new products) and upsell (existing products). Remember that targets are always people! Macro-segmentation: segment organizations along “traditional” variables: organization demographics Micro-segmentation: segment the buying center (DMU) and its members along behavioral variables Buying organization • general company structure • type of organization • S. Marketing to existing customers may require knowledge of the accounts. This involves geographical expansion or entering new industries/verticals with modified/new products.existing customers . Find new markets.C. etc. . size (“demographics”) • technology used • product application . New opportunities may come from . Building account profiles may help in this way. size of order. Segmentation and targeting This helps responding to the question who? Market segmentation involves dividing a total market up into a series of sub-markets or market segments based on customer characteristics.) Buying center • Buying center structure • Buying center composition • Buying situation • Stage of the decision process • Types of procurement strategies (biddingvs.end use . negotiation with “in” vendors: sequential vs. geography. existing contract. Target may be grouping companies.

It is subsequently important to understand the granularity of the segments. 2) determine the criteria of the market segment viability The segmentation has to be carried out with the following criteria that helps deciding if a market segment is viable: - a segment has to have identifiable members (enumerated and evaluated).value sought (customers may respond differently to the seller’s “value offering”) 4) choosing specific segments to focus on (targeting) Choice of which segment to focus attention and marketing budget is critical.industry classification . Consider expected acquisition costs.• Professional background • Influence/centrality in the buying center Targeting based on: – Buying Organization characteristics – Buying Center characteristics – Individual Decision Makers’ characteristics A market segmentation exercise involves the following steps: 1) define the relevant market to be addresses Consider the broad customer group at which the company wants to sell its products and services. degree of vertical integration . . employees. It must be measurable in size and characteristics. number of locations. that is the level of segmentation (macro. Consider also estimate of revenue and customer lifetime value (CLV).company size. Definition of the target market and its requirements is the first essential step in the segmentation process. retention rates and customer acquisition targets. profit per customers.service (business customers look for different level of services) .benefits sought .geography .buying process . gatekeepers). so promising sufficient business to merit separate marketing attention. micro or one-to-one) Understand who the target decision makers are (professional figures) and the roles within a buying centre (influencers. Criteria for choice should be existing and potential value and profitability. The choice may be based on: the breath of the service line types of customers geographic scope business needs that my product/service fulfils Overall. a segment must be durable over time 3) consider the alternative bases for segmentation Segmentation may be carried out by . a segment has to be accessible with some form a direct marketing activity and within the budget a segment has to be substantial (or meaningful). This needs estimation of segment sizing. we need to ask ourselves if we can satisfy the needs of existing and potential customers in a clearly defined market.

Focus groups. Differentiation is a fundamental way to avoid competition (generic strategy) • Two basic types of differentiation – Vertical differentiation: consumers want the same but their willingness to pay differs – Horizontal differentiation: consumers want fundamentally different things • Product differentiation needs to be embedded in a consistent strategy including all other elements of the marketing mix (distribution. pricing). qualitative methods .Surveys and Intention analysis. Formulate the positioning statement(s) Define a positioning statement. New Product Development Process Idea Generation.Identify targets that need special attention. This is a statement of what you do and how you do it differently and better and more efficiently than your competitors. like government. (Market driven OR Market driving) Idea Screening Concept Development and Testing Marketing Strategy Development and Business Analysis Product Development Test Marketing Commercialization Along the way.Conjoint analysis . a clear description of who your customer is and how you want him to see your product. market research tools are used to guide the process: . communication. Select the competitive marketing strategy How to compete? Market leader Market challenger Market follower Market nicher Product strategy Strategy for differentiation and positioning.Perceptual maps . Product lifecycle considerations Beyond idiosyncratic factors. the demand of each product/category/brand follows a systematic (“bellshaped”) pattern over time. .

low margins) – milk product/brand – improve efficiency The diffusion of products.“imitators” . uncertainty) – invest/ manage cash flow – find/educate customers • Growth (entry. brand..Introduction (no competition. loyalty. “tornado”) – compete for resources – build market share.“innovators” . Key elements: .“word of mouth” communication Industrial innovators • Larger firms • Financially powerful • Faster growing • With high R&D spending • With a younger CEO What promotes diffusion in industrial markets? • Homogeneity of customer base • Industry concentration/globalization • “Intermediate” level of competition • Level of professionalization • Mobility of employees . • Maturity (shake-out) – tough competition for customers – leverage distribution /differentiation/scale • Decline (few large players. brands and innovations in general is mainly driven by a social process similar to the spread of an epidemic.

stations… News releases and other PR activities Thought leadership material Trade publications Analysts Viral marketing Commercial (controlled by the marketer) Non commercial (outside the control of the marketer) Word of mouth from colleagues. consultants and co-workers Internet forums Structure the integrated marketing communication strategy Set communication goals Who is the audience? This is determined by previous segmentation and by understanding the segment organisations buyer behaviour Determine the touchpoints between you and your audience. What should the communication say and do? In other words: what the audience is intended to do with that information? Goals can be set bearing in mind the hierarchy of effects (AIDA model) 1 awareness: buyers become aware through articles in trade publications that Intel is introducing a new Pentium processor 2 interest: buyer become interest in seeing Pentium 3 when they receive an invitation to visit the Intel booth at the consumer electronic show 3 desire: buyers desire the Pentium 3 processor when the visit the Intel booth. Airports. see the video. Action is taken when the salesperson calls to visit the buyer. Identify the most suitable marketing communication mix Understand sources of information available to the buyers in the industry and most importantly which sources of information the target is using. Personal Personal selling Trade shows Telemarketing E-mail Conferences Company events Webinars Virtual trade shows Interviews Entertainment Impersonal Websites Blogs On-line forums Sales literature Advertising and advertorials RSS feeds Sponsoring events Online video b2b campaigns Outdoor marketing. Goals can be organized according to the following matrix .Price determination Decide a channel/partnership strategy This is always drive by business needs. receive list of software/computer making booth to visit to see the processor in action 4 action: buyers who indicated that a decision is approaching receive a letter shortly after the show with a special offer.

The information needs are related to the buyer business needs. For instance. each of which may have a number of supporting arguments. If the business need is an issue to be solved. they would be attracted by information that details a solution. For instance if the goal is to build more brand awareness. the use of the marketing mix changes.Strategic (what you want the overall strategy to accomplish) Tactical (desired outcomes for specific communications) Positioning (goals aimed at changing minds like corporate image or beliefs about a specific product) Product awareness Brand awareness Intel takes you where you want to go with your computer Remember the Intel theme after leaving a trade show Action (goals aimed to seek actions like repeat purchase or call to set an appointment) Increase market share Increase total sales Increase new customer sales Increase leads Number of visitor in a booth Note: branding is building a mental association with a brand. At the same time a marketer is trying to create a position in the mind of the customer. Create Messages There is usually a primary message that conveys more strongly to your customers what you do and the benefit it offers to them. budget allocation … . if the purchase of plastic is not so important for a company. the buyer won’t shop around too much. facts and figures. Knowing how buyers purchase and what they already think is important to design an effective communication strategy. What are the competitor’s actions. However information needs may change depending on the media buyer is using. like positioning for a product. maybe a direct mailing campaign may help. So the communication strategy may emphasize that it is easy to purchase from the marketer’s company. so competition does the same. However. deadlines. What information they need. if the goal is to generate leads. Messages need to be created according to Objectives of the communication strategy What buyers already think and do. supported by a number of secondary messages. advertising may be the best choice. Choose the marcomm mix Depending on the goals set for the marcomm strategy. Marketer should consider what competition is doing and how likely they are going to respond. Create a strategy for retention and one for acquisition Customer retention communication Customer acquisition communication Create and manage a budget for communication Prepare the marketing plan Prepare the plan of campaigns with timings. For instance research shows that when buyers attend trade shows they have 3 sets of information needs: • they need to find vendor for a particular product • they need to explore different possible solutions for a problem they are facing • the need to stay abreast of the latest technology in their filed.

Marketing operations Manage the campaigns Measure the results Briefing an agency. it serves as a checklist of all the important things to consider as part of your brief. Typical elements to an agency brief are: Your objectives. and any other supporting material and distribution. target market. A standard briefing document is usually a good idea for briefing an agency. campaign description. product. target audience. As well as focusing the agency on what's important to you and your campaign. corporate guidelines. . your product positioning. graphical considerations.