B2B Marketing

Dr. Ravi Shankar Bhakat

Assistant Professor
MDI Murshidabad
 Objectives

• Understand B2B Mktg conceptual framework

• Differentiate Consumer & Industrial Mktg

• Gain knowledge b2b Mktg environment/issues

• Develop B2B Mktg Strategies

• Real time “Problem Solving” skills

An overview of Industrial Marketing
Management
 Marketing Fundamentals

• Need

• Want

• Demand
 Marketing Fundamentals…

• Market/MarketPlace(real or virtual)

• Customer Value

• Value Chain

• Etc.
 B2B

• Business marketing is the marketing of products

and services to business organizations

• Government undertakings/private sector

organizations

• Manufacturing companies/Services org

 B2C

• Consumer marketing is the marketing of

products and services to individuals, families,
and households.

• The consumers buy products and services for

their own consumption or use
B2C vs B2B
 B2C vs B2B

• B2C-Consumer marketing

• B2B-Industrial marketing/ Business marketing

/business-to-business marketing/organizational
marketing

Basic Concepts are shared related to

• Marketing Mix Strategies

 How B2B Differs

• Numerically less customers

• Fewer transactions with higher purchase value

• Product complexity

• Interdependent nature of
demand/mfg/services
 How B2B Differs

• Strategic relationships

• Complex consumer behavior

• Complex structures and process

• Customized offerings /pricing

 B2C and B2B
The Consumer Market (B2C) and the Business Market (B2B) at
Dell, Inc.

B2C B2B

Customers: Individuals & Businesses Institutions Government

Households Global Healthcare Federal
Large corporations Education State
Small & Medium sized Local
businesses

Selected PCs PCs

Products: Printers Enterprise Solutions
Consumer Electronics Storage
Simple Service Servers
Agreements Complex Service Offerings
 Products in B2B Markets

• Products as components further assembled or

becomes part of another finished product..Auto
• For use in process/operations, apart from the
finished product…Machinery for producing other
goods
• For reselling and redistribution/with little or no
modification…OEM/ODM
 Services in B2B Markets

• Logistics company selling services to construction firm

• Ad agency Selling services for FMCG/CPG company

• Big5 providing consultancy for org in different sectors

• Hospitality service co. serving IT company for sales-

persons trips
Connect the dots !
 Some Trends

• Hyper-competition

• Formation of networks/cartels/lobby groups

• Adoption of technologies/IT/Internet

• Digital Supply Chain Management

• Reduction in Time/Ownership/Execution
 Industrial Demand

• Derived Demand
… Industrial demand of steel tubes is derived from the
forecast of consumer demand for bicycles, motorcycles,
scooters, and furniture
…..machinery and equipment demand (e.g. machine tools,
textile machinery, leather machinery, etc.) can be
affected by the ultimate goods associated with them
 Industrial Demand

• Fluctuating Demand

… demand in the industrial sector which rises

and falls sharply in response to changing
economic conditions and consumer spending
patterns… may not be directly proportional
 Industrial Demand

• Stimulating Demand

… Through advertisements influencing consumer

and indirect impact upon the demand of
industrial goods

PC Components, Construction Materials

 Industrial Demand

• Joint Demand

…Demand of one goods is linked to that of

another goods

Complementary goods/components