A PROJECT REPORT

ON

“B2B MARKETING”

Meri College of Engineering and Technology, (Sampla)

(Affiliated to Maharishi Dayanand University, Rohtak)

Submitted to partial fulfillment of the requirements

For the award of the degree for

Bachelors of Business Administration (BBA)

Batch (2019-2022)

Under the Supervision of: Submitted by:

Dr. Manju Singh Rajnish Raj
Head of Department, Roll No: ZBBA/39/19
BBA University Roll No.
 DECLARATION

I Rajnish Raj, a student of Sixth semester, Bachelor of Business Administration, Roll No. ZBBA/39/19 of
MERI College of Engineering and Technology, under the Maharshi Dayanand University, Rohtak declare
that the Project Report entitled “B2B MARKETING” being submitted by me is an original piece of work done
by me under the supervision of Dr. Manju Singh, HOD, BBA. The matter presented has not been used for
this report has been duly acknowledged providing details of such literature in the reference. Also, this
Project Report has not been submitted for the fulfillment of the requirements for the award of any other
Degree or Diploma to any other college/institution /university.

Signature
Name of the Student

University Roll No.

University Registration No.
Dated:
Place

COUNTERSIGNED

Signature
Name & Designation of the Faculty Supervisor
Name and Address of the College/Institution

COUNTERSIGNED

Signature & Stamp

Principal
Name and Address of the College/Institution
 Table of contents
S. no Title Page No.
1 Title page

2 Declaration

3 Index

4 Chapter 1
Introduction

5 Chapter 2
Review of Literature

6 Chapter 3
Research Methodology

7 Chapter 4
Data Analysis & Interpretation

8 Chapter 5
Findings, Suggestions & Conclusion

9 Bibliography

10 Questionnaire
 CHAPTER - 1
INTRO DUCTION
Definition of B2B Marketing

Here are some definitions of B2B Marketing:

Zimmermann defines B2B marketing as follows:

´The business market has been defined to include organizations that buy products and services for use in
the production of other products and services that are sold, rented or supplied to others. It also includes
retailing and wholesaling firms that acquire goods for the purpose of reselling or renting to others
(Kotler and Armstrong, 2001). But this definition is far too narrow for our purposes. The full B2B
market includes customers who are institutions like hospitals and charities and all levels of government.
This is especially true across the globe where quasi- government operations like the Mexican oil
supplier Pemex may be the biggest customer in a country. The business market not only includes
physical products but it includes services as well. In fact, as we will see, large institutions, governments
and businesses buy virtually every type of product and service. Business buyers generally buy to
increase their company’s profits.
Institutional buyers have thesame concerns but they may be focused on providing an adequate surplus.
There are only two basic ways to increase profits (or surplus): boost sales or lower costs. These
objectives may be achievedby increasing efficiency or purchasing lower-cost products/services.
Sometimes B2B buyers also buy to avoid penalties from government regulators or negative publicity
from activist groups. The most effective marketing programs directed at business buyers are always
based on one of the following three basic appeals:

_ increasing sales;

_ reducing costs;

_ meeting government regulations/avoiding negative PR.

Especially when taking a marketing strategy from a domestic to an international setting, experience
shows that the appeal must be simple to explain. Appeals that do not fall into one of the three basics
above often fail when translated to foreign markets.´

As the commercial markets generally deals with the functionality and performance, industrial
products show similarity worldwide. In B2C markets, national differences in culture and values
affects heavily product and service perceptions. B2B markets are different, because they need smaller
adaptations to present the product/service to abroad. Generally, customers worldwide expect similar
functionality and performance from industrial products. Globalisation of the world helps to decrease
geographic distances between B2B companies. (Zimmermann, 2013)

B2B (business-to-business), a type of electronic commerce (e-commerce), is the exchange of products,

services or information between businesses, rather than between businesses and consumers (B2C).
A B2B transaction is conducted between two companies, such as wholesalers and online retailers. In most
B2B business models, each organization benefits in some way and typically has similar negotiating powers.

By 2027, global B2B e-commerce is forecast to reach $20.9 trillion, representing a CAGR (compound
annual growth rate) of 17.5% during the forecast period (2020-2027), according to Grand View Research.

B2B is conducted via different categories of websites, such as the following:

 Company websites. The target audience of a company website is the business clients and employees of
other businesses. Think of B2B websites as round-the-clock mini-trade exhibits. Sometimes, a company
website provides an entrance to an exclusive extranet, available only to customers or registered users.
Some company B2B sites sell directly from the B2B website to other businesses.

 Product supply and procurement exchanges. These exchanges allow a company purchasing agent to
shop for supplies from multiple vendors, request proposals and, in some cases, bid on products. At
times called e-procurement sites, some serve a range of industries while others serve a niche market.

 Specialized or vertical industry portals. These portals provide dedicated information, product
listings, discussion groups and other features for specific businesses. Vertical portal sites have a broader
purpose than procurement sites, although they may also support buying and selling.

 Brokering sites. These sites act as an intermediary between service providers and potential customers
that need their specific services, such as equipment leasing.

 Information sites. Sometimes known as infomediaries, these sites provide information about a
particular industry to companies and their employees. Information sites include specialized search sites
and those of trade and industry standards organizations.

Many B2B sites fall into more than one of these groups. Models for B2B sites are still evolving, however.

Another type of B2B enterprise is software for building B2B websites, including tools
and templates, databases, methodologies and transaction software.

How does B2B work?

In B2B, one business sells a set of products or services to another business. Typically, there is a group or
department that uses the vendor's products and services. Occasionally, a single user on the buyer side makes
a transaction in support of the company's business goals. And some B2B transactions involve the entire
company's use of the products, such as office furniture, computers and productivity software.

For larger or more complex product purchases, the B2B product selection process is handled by a buying
committee, including:
  a business decision-maker, such as the person responsible for the budget;

 a technical decision-maker, or someone who evaluates the capabilities of the prospective products; and

 influencers, such as individuals who provide input on the decision.

Large purchases might involve a request for proposal, in which the buyer invites prospective vendors to
submit proposals detailing their products, terms and pricing.

Why is B2B important?

B2B is important because every business needs to purchase products and services from other businesses to
launch, operate and grow.

A company's B2B suppliers offer office space, office furniture, computer hardware and software, and so on.
The food that companies stock in their kitchen and the signs displayed on their office building are purchased
from suppliers.

Types of B2B companies

There are several types of B2B companies, including the following:

 Producers design, create and manufacture their own products. Producers may sell their products
directly to businesses or indirectly through retailers or resellers.

 Retailers and resellers sell products and services made by other companies directly to businesses.
Retailers and resellers may sell online, from physical stores or both, including B2B e-commerce
vendors.

 Agencies and consultants provide advice, oversight and subcontracted work to businesses. For
example, an advertising agency manages and executes a multimillion dollar advertising budget for a
consumer brand. A website agency designs and builds a website and mobile app for the same brand.

B2B industries

B2B companies operate in many industries, such as:

 Financial services

 Technology

 Manufacturing

 Construction
  Retail

 Telecommunications

 Insurance

 Healthcare

 Education

 Engineering

 Marketing and sales

 Real estate

 Food and beverage

Benefits of B2B

The following are benefits of B2B:

 Large average deal size. A B2B company can grow sales with a smaller number of high-value deals
compared to a B2C company, which may require thousands or even millions of individual sales. Since
B2B companies sell and buy in bulk, the average B2B transaction is about $491, as opposed to $147 for
a B2C sale.

 Higher switching costs. B2B customer loyalty is likely if they are satisfied with the product and
service. In contrast, B2C customers can be finicky and not loyal, resulting in large churn rates.

 Large market potential. B2B companies can target enterprises across many industries and
geographies, resulting in a big playing field. Or they can specialize in one industry, such as technology,
and become leaders in that field.

 B2B organizations advertise their products and services and conduct business online, making it easy for
clients to place bulk orders via an efficient digital transaction model.

 Faster delivery. Because B2B e-commerce tools make the sales process efficient for sellers, they
accelerate the process for buyers. Integrated systems enable the transacting companies to sync data
across channels, automate fulfilment and inventory updates, and manage complicated orders.

 Built-in order management Cloud-based e-commerce platforms easily integrate with back-end
systems or order management systems. This enables B2B sellers to synchronize order inventory and
customer data across every channel.
B2B challenges

B2B e-commerce has some challenges, such as the following:

 Long-term customer retention. B2B companies often have a difficult time convincing buyers to make
repeat purchases.

 Limited market. Although B2B companies can target organizations in many industries, the business
market is still limited in size. This makes B2B particularly risky for small and midsize B2B
organizations.

 More competitive. Since the B2B market is small, it's competitive.

 Longer decision-making process. Decision-making in business can be slow because many

stakeholders are involved in the process.

 Price negotiation. Since B2B buyers purchase in bulk, they typically negotiate for better prices, ask for
discounts or demand extra services.

 E-commerce supply chain management can be complicated. This is especially true when multiple
partners are involved in the supply chain and they all need access to the same information.
Miscommunication at any point in the supply chain can slow down the process.

Examples of B2B companies.

Here are some examples of B2B companies:

Amazon

Amazon, one of the best known B2C companies, also has a B2B business called Amazon Web Services
(AWS). AWS provides compute power, database storage, content delivery and related features to businesses.
It is one of the leading cloud providers with customers such as GE, Hess, Expedia, Philips and BP. AWS
Cloud spans 80 availability zones within 25 geographic regions, globally.

Caterpillar

Caterpillar manufactures construction and mining equipment, diesel and natural gas engines, industrial
turbines and diesel-electric locomotives and sells these products to other businesses. The company also
provides financial services to businesses through its Caterpillar Financial Services business unit.

Alibaba

Alibaba is one of the world's largest online commerce companies. The Alibaba B2B marketplace is where
buyers and sellers worldwide connect and transact business.
Quill

Owned by Staples, Quill is a B2B e-commerce company that sells office supplies to small and midsize
businesses. Quill markets over 100,000 products under the Quill brand, as well as under the Medical Arts
Press, Mead, Coastwide, Snack Jar and Java Roast names.

Upwork

A job search platform, Upwork connects freelancers with employers on projects such as web and mobile app
development, social media marketing, content writing, graphic design and more.

History of B2B Marketing

The history of B2B marketing can be summarized as follows: (Bly, 2007)

The death of ´industrial marketing´: The name changed from industrial marketing to business
marketing, and from business marketing to B2B.

From tactical to strategic: The number of marketing tools were limited before the internet. Planning
campaigns was similar and straightforward. Today, there is are lots of choices from e- newsletters and
webinars, to podcasts and vertical search engines. Because of the that planning a campaign in B2B
environment is more complex.

The end of the ´Industrial film´, slide shows and 35mm photography: In 1970s,it was very difficult to
take photos, forming slides and preparing presentations. Nowadays, everyone cantake photos with
digital camera and use some software to prepare presentations.

The dethroning of trade journals: Although trade magazines still exist, they struggle to compete with
internet.

The decline of print advertising: Print marketing is not so popular comparing with paid search, SEO
and e-mail marketing.

The effectiveness of plated feature articles: Printed work seems to be in decline, but writing
articles for industry publications is very efficient marketing strategy.

The shrinking of PR: Many PR companies either folded or saw billings decline.

The demise of the sales brochure: Fewer printed brochures were printed recently, as the
information about the company can be found in company webpage.

The critical importance of keywords and search: The primary means of finding
products isthrough internet search.
What Is A B2B Report?

An online platform like B2B Reports helps sales representatives track performance, identify winning and
losing campaigns, share success data with managers, colleagues, and investors in order to better coordinate
sales and marketing initiatives and revenue.

The Main Characteristics Of B2B

A low number of buyers in relation to a large population of consumers is considered.

Large-scale orders.
There is a chance of establishing a relationship between buyer and seller.
Customers are easily categorized or grouped into parts.
When making a purchase, people have more options.

How Do You Write A B2B Marketing Proposal

Take a look at your current marketing performance.

Analyze Your Competitors’ Performance.
Give A Deep Look at Your Target Audience.
Identify Your Marketing Goals.
Identify Your Marketing Budget.
Make sure you get an inbound and outbound strategy in place.
Take the time to consider the latest trends for B2B marketing.
Differences between B2B and B2C Marketing

In order to understand the differences between B2B and B2C companies following table is
helpful: (Mathur,2008)

B2C B2B

Personal selling,
Communication with direct sales force,
According to customer acquisition the community commerce
shows
Bareers for competitors Low High

Supplying
Accoring to relationship type Catolog search company
materials
Giving orders Direct supply
Paying Paying
Status follow Status follow

Catolog
information
management
Order filling
Promotion management
Cooperation
management
Design cooperation
Planning
management
cooperation
Sales Weak buyers Strong buyers
Market size Defined with millions Defined with thousands

Comparing with B2C companies, generally B2B companies have less customers. Many B2B
companies´ revenues come from small amount of companies. Industrial product customers can be
classified in three categories: Users, OEMs and dealers. (Kotler, 2006)

Users use the product for its business. For example, a producer buying a machine to produce
products for end customers is in that category.

OEMs use bought products for the end product. For example, many parts of automobiles are bought from
the suppliers.

Dealers are buy products to sell to the user

Purchasing Strategies
A commercial buyer needs to face many decisions during the purchasing activity. The
complexity and amount of the decisions are related with the situation. The purchasing decisions
can be classified as follows: (Kotler, 2006)

Direct purchasing: It is the most commonly seen purchasing situation and generally has less risk.
Ordinary products such as office staff are supplied routinely. Most companies have supplier list
for that type of materials.

Renewed purchasing: It is the situation, when a company decides to change existing suppliers.
For example, to decrease the cost, different alternatives can be evaluated.

New purchasing: The company faces a new situation about the product or service. If a product is
purchased for the first time, lack of experience increases the risk to be taken. In that case, more
people are involved in purchasing decision and time to take the decision takes longer.

Purchasing Committee

In every purchasing decision, participants of the committee change according to purchasing

decision. According to product or service needs to be purchased, qualification of the committee
differs. For example, in direct purchasing, a committee consist of only one person. But, in a new
purchasing situation, te number and qualification of the people increases.

A good example can be given about the purchasing decisions in Volkswagen Group, which has a
very strong central purchasing committee. All the purchasing decisions are taken by the
purchasing directors in Wolfsburg for the brands Volkswagen, Audi, Skoda and Seat.
Volkswagen Group has fife commodities, and all the commodities are managed by the directors.
The commodities are: Powertrain, metal, interior, exterior and electric. For example, if a
purchasing decision of a battery cable of a new Skoda project has to be taken, first analysis is
made by the buyer of the product in Mleda Boleslav. He/she presents his/her analysis to the
director for approval.

Every organization´s goal is to find and keep customers. It is only possible to achieve that goal
creating with competitive advantage. Creating competitive advantage comes only with
convincing buyers that what you have to offer them comes closest to meeting their particular
need or want at that point in time. If this advantage provided consistently, your customers keep
to buy your product or service.

Seven steps of marketing is: (Kotler, 2010)

A. Understand the market wants/needs of interest

 B. Based on relative size and needs of the market, select certain segments of

the marketthat are of the most interest to you and your organization

C. Thoroughly describe these segments based on their individual needs

D. Create a product or service that will meet the specific needs identified

E. Communicate the concept of the product or service to the targeted customer in a

way that makes sense to the customer

F. Deliver the product or service to the targeted customer in a way that will be
convenient to thecustomer

G. Solicit feedback from the customer about how your product or service could be
improved to meet the customer needs even better .

These principals also can be applied in B2B marketing.

Characteristics of a marketing organization is : (Kotler,

2010)

1. The purpose of marketing is to help find and keep customers by creating a

competitiveadvantage.

2. Marketing, one of several functions operating in an organization, is directed by

the missionstatement of the organization and provides certain tools to reach
objectives.

3. The value of marketing must be kept in perspective: it must contribute to the

growth of the firm.

4. The primary reasons for studying marketing are:

a. It is important to assess the role marketing should play in the firm.

b. Marketing offers growing career opportunities.

c. Marketing enhances our chances of becoming more effective consumers and citizens.

To survive, an organization should have enough number of customers, who are

interested in to buy its product or service.

Key Account Management

Key Account Management is normally associated with the idea of looking after large
 and important accounts that are.

Advantages and Dangers of Key Account Management to Sellers

(Ellis, 2011)Close working relations with customer:

In B2B environment, it is widely seen, customer demand to a key account

responsible/manager. Some customers request a key account manager only dealing with
their company. Key account manager is the channel with the customer and supplier.
Communication skills of him/her have great importance for the relations between to
companies.

Close working relations with the customer:

The salesperson knows, who makes what decisions and who influences the various
players involved in the decision-making process. Technical specialists from the selling
organization cancall on technical people (e.g. engineers) in the buying organization, and
salespeople can call upon administrators, buyers and financial people armed with the
commercial arguments for buying.

Better follow-up on sales and service: The extra resources devoted to the key
account meansthere is more time to follow up and provide service after a key sale
has been concluded.

More in-depth penetration of the DMU: There is more time to cultivate relationships
within the key account. Salespeople can ´pull´ the buying decision through the
organization from the users, deciders and influencers to the buyer into the organization,
as is done with more traditional sales approaches.

Higher sales: Most companies that have adopted key account selling techniques claims
that haverisen as a result.

The provision of an opportunity for advancement for career salespeople: A tiered

sales force system with key account selling at the top provides promotional
opportunities for salespeople who wish to advance within the salesforce rather than
enter a traditional sales management position.
Lower costs: Through joint agreement of optimum production and delivery
schedules, anddemand forecasting.

Co-operation: On research and development for new products and joint promotions
(e.g. withinthe fast-moving consumer goods / retail sector.)

Integrated systems: Information communication technology (ICT) can benefit

suppliers in theareas of delivery and billing.

And here are the potential dangers of key account management:

When resources are channeled towards to limited number of companies, the supplier
runs therisk of increased dependence on, and vulnerability to, relatively few
customers.

The risk of pressure on profit margins if a customer chooses to abuse its key account status.

The possible danger of a customer applying ever-increasing demands for higher

levels ofservice and attention, once they know, that they have preferred
customer status.

Focusing resources on a few key accounts may lead to neglect of smaller accounts,
some ofwhich may have high, long-term potential.

The team approach required by key account management may be at odds with the career
aspirations of certain high achievers who prefer a more individualistic approach and
object to thedilution of praise which has to be shared with other people when a big order
is won.

Speeding up with Branding

In order to speed up with branding, brand creators should see the big picture. It is quite
possible to give efforts for an unsuccessful branding work. As the companies have
limited resources, they should know very well what is important and what should have
done. Many companies focus on profit increase rather than value increase. Profit increase
requires short term planning, however branding requires a long term planning.

According to Coe building a strong branding requires important role in B2B markets:

´In part because of the complexity and large risks involved, branding plays an important
role in business-to-business (B2B) markets. Although marketers of B2B brands must do
many of the things that marketers of any kind of product or service must do, six
guidelines that are more unique to B2B settings can be defined. First, the entire
organization should understand and support branding and brand management. Employees
at all levels and in all departments must have a complete, up-to-date understanding of the
vision for the brand and their role. A brand mantra – a short three- to five-word summary
of the essence of a brand – can help with this vertical and horizontal alignment. Second, a
corporate branding strategy should be adopted if possible with a well-defined brand
hierarchy. Ideally, sub-brands would be created that combined a well-known and highly
credible corporate brand name with descriptive product modifiers. Third, to avoid falling
into a commoditization trap, sufficient differentiation must be established to justify price
premiums. To sustain that premium, it may be necessary to ‘‘frame’’ value perceptions to
ensure that customers appreciate a brand’s differences. Fourth, one often overlooked
means of differentiation is to link brands to relevant non-product-related brand
associations related to customer service, well- respected customers, or clients, etc.

Fifth, emotional associations related to a sense of security, social or peer approval, and
self respect can also be linked to the brand and serve as sources of brand equity. Finally,
customers must be carefully segmented both within and across companies and tailored
marketing programs developed for these different segments. Adopting these six
guidelines will increase the likelihood of creating a strong B2B brand, reaping all the
benefits that such an achievement entails.´ (Coe, 2003)

Real value of a company generally lies in abstract marketing values. Brands, market
information, customer relations, distribution channels, licenses, shareholder relations, and
balance-sheet. These values are factors of long term earnings.

Process of Brand Development

The whole process should begin from the top management, and should contain all the
necessary processes to create a brand icon. In B2B companies it can be difficult to
have the full support of top management, it is even difficult to convince top management
for the branding idea.

The owners and managers of global brands such as Google, Volkswagen, and MAN had
the vision of accepting that idea and they were highly rewarded.
To develop, strength and expand a brand the company should be competitive and
should havethe necessary technology.

Volkswagen Group catch big success with DSG transmission systems. It has been sold
already over 3,5 million units group-wide. (VW Santa Monica)

The DSG is a global success story: 3.4 million units of the automatic gearbox have been
produced at the Kassel Plant alone. An additional 150,000 units were produced in
Dalian(China). It should be here well understood, that Volkswagen Group has the
advantage of using the same units in various brands such as Volkswagen, Audi, Seat,
Skoda, and Volkswagen commercial vehicles.

The DSG dual clutch transmission developed by Volkswagen combines the convenience
of an automatic transmission with the efficiency and dynamic performance of a manual
gearbox. Two clutches guarantee that the shifting process is lightning fast. The
Volkswagen DSG has become an automatic transmission sensation, bringing together top
levels of shifting convenience, fuel economy and sports appeal. In 2003, the world’s first
production dual clutch transmission was launched as the Volkswagen 6-speed DSG,
which was initially used in the Golf R32 and the Audi TT. Today the DSG transmission
is available across all of Volkswagen´s model series.

As an example of a car model of Volkswagen, Golf is one of the most successful ones.
Starting production in May 1974 Golf has achieved its 7th generation in 2012.

First Golf (VW Type 17) were produced in 1974. However, in the US and Canada from
1975 until 1984 Volkswagen Rabbit and in Mexico Volkswagen Caribe was launched
by name. Golf, took the reward car of the year in 1975 by the Australian Wheels
magazine, car of the year in Ireland in 1978 and car of the year award in 1981 by the
British What Car Magazine.
Till Winter 2014 30 million Golf was sold worldwide. From the turbo engine, direct-
injection engine, ABS, ESC, XDS, 4MOTION, trailer stabilisation, automatic post-
collision braking system, automatic air-conditioning, DynAudio sound system,
touchscreen with proximity sensor

or LED headlights; Trendline, Comfortline, Highline or GTI – the most important

technologies and trends of our time have always been pioneered by the Golf. These
technologies made Golfclass leader since its launch.
Here is the brief story of all the Golf generation:
Golf I: In 1974, first series of Golf produced in Wolfsburg.
Golf GTI: The GTI model launched in 1976, which brings greater dynamism.
Golf II: It launched in 1983, and has bigger body and engine choices comparing with Golf I.
Approximately 6,3 million units of model was produced.
Citi Golf: It was launched in 1984.
Golf III: It was produced between 1991 and 1998. The model release in North America
was in1993 with an 18 months of delay comparing its launch. The reason of delay were
the quality problems in Puebla factory of Volkswagen, in Mexico.
Golf IV: It was produced between 1997 and
2003. Golf V: It was produced between 2003
and 2009.
Golf VI: It was produced between 2009 and 2012. In 2009 it was rewarded for car of
the year and safest car of the year.
Golf VII: (2012- ): The launch was made in 2012. It has the same platform with
Audi A3, Seat Leon and Skoda Octavia, called as MQB. Using same platform enables
Volkswagen Groupto use same parts as much as possible to reduce both tooling and part
production costs. It has sharp lines as a new design concept.
Golf has three additional models, which are all produced
also today:Golf GTI: It is the sporty model of Golf
Golf R32: It is the strongest model of Golf with an 250 HP
engine. Golf Plus: It is slightly higher than classical model
of Golf.
Some brands have the duality to have luxury consumer brands and quality commercial
brands. Mercedes-Benz produces luxury automobiles and also commercial vehicles like
bus and trucks. Brands like Audi and BMW produce only automobiles, while
Volkswagen, biggest car manufacturer in Europe, has production of trucks only in Latin
America with Volkswagen brand. Another success study is from an automobile supplier,
which has a wide range of customer portfolio including global players such as Audi,
BMW, Daimler, Ford, Fiat, Fiat, Hoda, Hyundai, Kia, Renault, Seat, Volkswagen, etc.

The supplier Teklas is at the moment a system supplier, which is a step ahead of
processspecialists. Here are the milestones of the company:

1971: Foundation of first production plant extruded & injection rubber parts.
1978: Entrance to the windscreen wiper systems

production1985: Entrance to the brake – clutch lines

production

1987: Head quarter & production plant moves to Muallimkoy

location1989: First international customer / exportation

2003: First investment for the R&D

centre 2006: First oversee investment /

Bulgaria plant

2007: Thermoplastic Production Technologies

Investments(3D Blow Moulding, WIT and

Thermoforming)

2009: R&D Certification by Turkish

Government 2011: Russia plant

investment

2011: Entrance to metal tube

production2012: China plant

investment

2014: New rubber mixing plant in

Bulgaria 2014: Production capacity

increase in Bulgaria
 Brand Planning
As branding have always long term results, brand planning should match long term
plans of the company. Many companies have marketing activities, sales planning and
strategic planning, but does not have a branding planning. Because of that, brands do
not reach the demanded results.

If the companies and brands should stay goal oriented, brand planning should be one of
the strategic tools of them. Developing a brand cannot happen in one day. Instead of
preparing a short term activity plan, the whole process should be planned according to
some periods and milestones.

Branding Principles: (Kotler, 2010)

Consistency is the most important point for B2B companies, but still many companies
don´t give enough importance to that area. It is important not only for the product, but
also channels of marketing. Social responsibility and investment planning are also parts
of that area.

Clarity is essential for branding. Without clarity it is impossible to become a real brand.
Customers should understand very clearly, what the company and its brands are. Brand
clarity is connected with companies´ vision, mission and values.

Continuity means preserving company values. People trust strong brands, because they
know, what to expect from them.

Brand Analysis

Brand development begins with market analysis. It should supported with customer
analysis and competitor analysis.

Fundamental decisions about strategic brand management should always supported by

the information about the company and environment of company. In most cases, the
biggest challenge is not to produce future values, but to discover them. Companies can
build effective relations with their customers and provide the valuable information.

An efficient branding strategy can be formed with the definition of brand mission, brand
identity and brand values. Starting point of all branding strategy is to work on existing
purpose of the company. To answer necessary questions, marketing analysis inside and
outside of the company should be made.
Chapter 2: Literature Review

12
This chapter discusses on the literature review of the study. The discussion

commences with general overview on the issue related to branding, B2B business,

market differences between B2B and B2C, organizational buying behaviour, buyer-

seller relationship; and follow by discussion on the dependent variables – “brand

sensitivity”, as well as the independent variables of the study, which includes:

“purchase importance”, “purchase complexity” and “time pressure”. Next,

intervening variable, which is “perceived purchase risk” in both organizational and

individual basis are beingdiscussed.

Brand

The American Marketing Association defines brand as a “name, term, design, symbol

or any other feature that identifies one seller’s good or service as distinct from those

of other sellers. The legal term for brand is call trademark™, and a brand can take

many forms, including a name, sign, symbol, colour combination or slogan. It is the

personality that identifies a product, service or company and how it relates to key

constituencies, such as: customers, staff, partners and investors (American

Marketing Association, 2011). Brand information facilities identification of

products, services and businesses, it communicates their benefits and value and

reduce the risk andcomplexity of buying decision (Kotler & Pfoertsch, 2006). Three

key aspects

13
of branding important to marketers includes: general name awareness, how well

known is the brand and purchase loyalty (Aaker, 1991).

One of the key roles of branding is its ability to offers cues that can improve

information processing efficiency, reduce risk perceptions, and simplify production

selection (Keller, 2003). Such brand cues influence the decision process by

communicating information about the product/ service offering and the overall

experience a customer might expect with the seller. Hence, provide “peace of mind”

to its customers (Keller, 2003). A well accepted branding theories is Keller’s

Customer-Based-Brand-Equity (CBBE) pyramid model that that stress on differential

effect of brand knowledge on a consumer’s response to the marketing of brand, and

is conceptualized according to an associative network memory model in terms of

brand awareness and brand image, which appears to be relatively subjective and

emotional. CBBE model focus on strategies to achieve resonance bonding between

the brand and its customer via consistently enhancement of judgement, feeling,

performance, image and salience stages, which are focusing to assess an end-

consumer’s psychological perspective of a brand, including one’s awareness, attitudes,

associations, attachments, and loyalties toward a brand. The ultimate goal of all

branding strategies is to achieve brand salience – the emotional attachment between

the customers and the brand, which resulted in purchase loyalty (Keller, 2003).

14
Business-to-Business (B2B) Marketing

B2B Marketing, or sometime refers as Industrial Marketing are commonly refers to

business transactions between companies. The transacted productsand/or services are

used in manufacturing that are not marketed to the general consuming public.

Industrial products can be process inputs – products consumed in the manufacturing/

construction process (such as steelformworks and scaffolding); or product inputs

products that remains asingredients of the final product (such as wall & floor tiling and

sanitary wares).The transactions of industrial products are usually has relatively high

value compared to consumer products, repeat-purchase in nature and are integralto the

success of both parties (Hutt & Speh, 2001).

Research by De Chernatony & McDonald (1998) outlined some key characteristics

that are suggested to differentiate industrial markets from consumer markets, which

includes:

 Fewer, but larger buyers

B2B transactions are transaction between companies; items purchased are

commonly to be consumed during the processes in producing end products that

selling to general public. Quantity purchased is relatively large as compared to

consumer purchase, but the industrial products areonly needed by companies that

involves in the market segment as relatesto the selling company.

15
 More people involved in decision making process,

Unlike consumer purchases where the buyer is the decision maker and the user of the

product; The purchaser is rarely the user of the purchase items, B2B purchases

generally involves various professional that responsible for different roles &

functions in an organization. Decision are only be made after systematic and

careful search and evaluation of information relates to the purchase items and its

alternative goods/ solutions.

 Closer buyer-seller relationships,

In view that B2B transaction is integral to the success of both buying and selling

company, and the transactions are commonly repeats in nature. It is critical for the

selling company to have a good understanding on the operation of buying

company, and to establish a trustworthy business partner relationship with the

client. In fact, relationship marketing is a key study area by many academic

researchers in the area of B2B marketing.

 Products often need customising to customers’ needs,

Consumer products are generally off-the-shelf items with little or no

customization. However, industrial products are commonly uses as an ingredient/

component items to the buying company’s end products, hence require substantial

customization to match its specific requirements in term of technical, financial,

delivery arrangement, after-sales supports and etc.

 Purchases are negotiated less frequently,

Most negotiation on the purchase of industrial products took place during initial

stage. Once the suitable item is selected, it will become repeat

16
 purchase unless the selected items fail to perform, or there are major chances in the

requirement that the selected fail to accommodate.

 Greater loyalty,

Trust and loyalty is the key to the integral success of both buying and selling

company. Buying company would usually place repeat orders in reducing perceived

purchase risks, and it will take a lengthy process for the purchasing committee to

select a new supplier that can understand their operation, specific requirement and

committed to the mutual successof both companies.

 More rational buying behaviour,

The purchasing process goes through a systematic and objective procedure, where

many professional that responsible for different roles & function involves in the

selection process. Such procedure is able to reduce the chances of individual bias

and/or preferences over the purchase item.

 Better informed buyers.

The purchasing committee includes professional that has extensive knowledge and

exposure in the area of their expertise; extensive information search is to be carry out

during the selection process; and most available alternative items/ solutions are being

study and evaluate before the selection in done.

17
Branding for B2B vs. Branding for B2C

For most companies in B2C environments, developing and maintaining strong brands

is a key elements of their overall marketing strategy. In comparison, companies

targeting business customers often put relatively less focus on branding, as price

and delivery appears to be more important to organizational buyers. (Bendixen,

Bukasa & Abratt, 2004). Consistent with the above findings, only 21 B2B brands

were found on the listing of 100 most valuable brands worldwide on the brands

ranking conducted by INTERBRAND for year 2011, the top 100 brands are

mostly dominant by consumer brands that relates to automobile, banking &

finance institutions, fast-moving-consumer-goods (FMCG), food & beverage,

electrical & electronic devices, fashion icons as well as telco-companies. Out of

the 21 B2B brands, 9 are investment/financial/consulting services providers such

as:“Goldman Sachs”, “JP Morgan”, “Barclays”, “Morgan Stanley”, “Zurich”,

“VISA”, “Credit Suisse”, “UBS” & “accenture”; 3 are ERP/IT services provider

– “Cisco”, “SAP” & “Oracle”; 4 IT/electrical & electronic related hardware

producers, which includes: “Intel”, “General Electric”, “Fuji Xerox” &

“Siemens”; 2 heavy equipment brands of “Caterpillars” & “John Deere”; and the

remaining 3 brands being “3M”, “Thomson Reuters” and “UPS” (InterBrand,

2011).

18
 Most Marketing Manager in B2B segment receives little guidance from

of attention as the research topic as B2C branding within marketing literature(Mudambi,

2002). Although consumer branding principles such as CBBE model might apply to

business markets, some factors suggest that branding is playing very different roles in

business markets. Factors listed as below suggest a reduced role for brands relative to

consumer marketing contexts (Zablah, 2010):

 Group decision-making process

The likelihood that brand considerations permeate the deliberation process is

reduced, given that brand awareness and purchase criteria likely differ across

buying centre participants in an organizational buying context.

 Nature of market demand

Demand for B2B products is derived from the demand for B2C products, and

it is commonly uses as an ingredient/component items in the B2C products

which sometime will not be seen by the end users. Hence, the inherent value

of brand as a vehicle for self-expression is generally reduced in B2B markets.

 Buyer-Seller relationship-oriented promotional approach

Long term and cooperative driven relationship is the key in most B2B

transactions; purchase consideration is more likely to be influence by the

factors such as: trustworthiness, reliability and company credibility, insteadof

purely brand image.

Hague and Jackson (1994) suggest that in B2B markets, the brand name is often

the firm name because the relatively smaller size of market segment (compared

19
consumer market) does not justify the promotion of different

brands. This characteristic differs from B2C segment, which generally comprise

multiple segments so that the companies develop a number of brands to target a

range of customers in those segments, and the brand management in B2C markets,

such as fast-moving-consumer-goods (FMCG)industry is more emphasis on

individual rather than corporate brands, and direct their efforts toward minimizing

the size of the brand portfolio, while maximizing coverage. In B2B settings, branding

is a multidimensional construct that includes product characteristics, brand image,

support and distribution services, company reputation, and company policy (Cretu &

Brodie, 2007; McQuiston, 2004). Therefore, B2B brand perceptions are influenced

by associations related to an on-going relationship, corporate reputation and service

experiences. Hence, the term “brand” can refers to people, things, and ideas, as well

as the processes of targeting, positioning, and communicating offerings in a B2B

context (Stern, 2006).

Some significant differences between B2B and B2C markets that suggest a

diminished role for B2B brands when compared to B2C counterparts. According to

the study by Bendixen (1994), the organizational buying that based on systematic

decision-making process, and is subject to supervisor’s review is less susceptible to

the influence of emotional or brand factor. Hence, the relatively importance of

branding roles is reduced in such group decision-making process. Meanwhile, the

inherent value of brands as a vehicle for self-expression is generally reduced in a

B2B context, in view thatthe demand on B2B products is derive from the demand of

B2C products andis generally consumed during the production process or remain as
20
an ingredient that not visible to the end users (Webster & Keller, 2004). Moreover,

brand consideration is also reduced to a supplemental role as interpersonal interactions

plays a vital role in maintains a cooperative and close buyer-seller relationship (Turley &

Kelly, 1997). The key differences onbranding role between B2B & B2C are summarized

in table 1 as below:

21
 Table 1:
B2B vs B2C market differences & their implicationsfor
the relative importance of B2B brands
Market Description
difference
s of brands in business markets
Decreased Increased Rationale
Decision-making Purchase process are more
process systematic & objective driven in
B2B than B2C markets;
(Bendixen, 2004; Kotler &
Pfoertsch, 2007)
Group dynamics Purchase decisions in B2B
markets often involve groups
of individuals with distinct
roles & agendas while
individual decision-making
tends to be the norm in B2C
markets.
(Johnston & Botoma, 1981)
Nature of demand Demand for B2B products is
derived from the demand for
B2C products
(Webster & Keller, 2004)
Branding emphasis Corporate (as opposed to
product) branding is more
prevalent in B2B than B2C
markets
(De Chernatony & McDonald,
1998; Malaval, 2001)
Marketing Interpersonal communication,
communications i.e. personal selling has a
mix heightened role in B2B
markets when compared to
B2C markets.
(Turley & Kelly, 1997)
Implications for the relative
importance
X Systematic decision-making,
which is subject to supervisor
review, is less susceptible to
the influence of emotional or
brand factors.
X The likelihood that brand
considerations permeate the
deliberation process is
reduced, given that brand
awareness & purchase criteria
likely differ across buying
centre participants.
X The inherent value of brands as
a vehicle for self- expression
is generally reduced in B2B
markets.
X Corporate brands can be
leveraged across product
categories & purchase
situations to influence buyer
decision processes.
X Brand considerations are
reduced to a supplemental role
as interpersonal interactions
strongly inform buyer decision
processes.
(Zablah, et. al., 2010)
22
Even-though most researches relating to B2B markets, organizational buyingbehaviour

and buyer-seller relationship in B2B segment concludes that organizational buyers are

“rational” decision makers who rely primarily on objective attributes when making

product choice decisions; Another school ofthought argued that brands can play an

important and functional role in business markets, particularly as signals of product

quality and of the overallrelationship and experience a customer can expect from one

supplier (Aaker& Joachimsthaler, 2000). In fact, perceived purchase risk has been

identifiedas one of the primary determinant of buyer behaviour in an organizational

buying context (Newall, 1977). As strong brand signals trustworthy and reliability to

buyers; it can play a meaningful role in risky purchase situations(Mudambi, 2002). This

finding, however contrasts with the findings of established organizational buying models,

which suggests that buyers offsetheightened levels of risk by pursuing disciplined

purchasing strategies built upon an extensive information search process.

B2B branding begun to receive increased attention from marketing scholars over the last

decade, and extant research also finds that B2B brands offer cues that improve

information processing efficiency, reduce risk perceptions,and simplify product selection

(Gordon, Cantone & di Benedetto, 1993). The above findings have no doubts influence

the decision making process by communicating information about the product offering

and the overall experience a customer might expect with a seller. Even though branding

practices in B2B context had received more attention in recent years, the relative

influence of brands based on organizational buying decision appears

23
to be modest and not as pervasive as in brand-laden consumer markets. (Hutton,

1997; Mudambi, 2002). Some key differences identified by Mudambi (2002) between

B2C brand management and B2B brand management are outline as per table 2

below:

Table 2:
Brand Management Issues (B2C vs. B2B)
B2C Brand Management B2B Brand Management

Branding at product level, with increasing emphasis on Branding at the corporate level, with experimentation at
corporate level the product level

Customer perception of functional, emotional and self- More customer emphasis on risk-reduction; less
expressive benefits of brands customer emphasis on self-expressive benefits of brands

Moves to reduce the numbers of brands within a Number of brands within a company increasing due to
company acquisitions

Mudambi (2002)

Organizational Buying Behaviours

Organizational buying behaviour believes that B2B marketing is relatively aligned

toward “objective” measures, as business purchases decision are only made after all

relevant information that relates to the purchase decision, such as: quality,

performance, pricing, delivery, services, company’s track-records & etc. are carefully

evaluate based on some extensive and systematic information processing. Dean &

Sharfman (1993) refers “rationality” as the extent to which the decision making

process involves the collection of information relevant to the decision, and the

reliance upon analysis of this information in making the choice. The classic

organizational buying models portray buyers as rational decision makers who rely

primarily on objective

24
estimates the relative value of each alternative in the choice set and make the choice in a

systematic manner. This rational view of organizational buyer decision making has

not allowed a significant role for the subjective or self- expressive benefits often

associated with brands. (Wilson, 2000). Thus, organizational purchasing behaviour

omit the possibility of subjective influences, such as advertising & promotion, as

well as personal preference over designs & figures during the decision making

process in view that the purchase has no direct influence to the purchaser at individual

level.

Industrial Marketing studies have always been focusing on organizational buying

behaviour and buyer-seller relationship marketing model, in view that:

 Purchase decisions are made collectively by a group of personnel with different

responsibilities, but shared a mutual goal; Hence, the decisions are made on the

basis of collective, rational and objective

 B2B transactions are usually repeats in nature, and are integral to the success

of both buying and selling company. Hence, buyer-seller relationship is a critical

component in the success of B2B business.

Past studies on organizational buying models portray buyers as being highly objective

when making product choice decisions (Bonoma, Zaltman & Johnston, 1977;

Malaval, 2001; Low & Mohr, 2001); and generally, an objective decision maker has

not allowed a significant role for the influence of “subjective”, brand-based

judgements on organizational buying deliberations. Unlike consumer behaviour

where the purchase decision is made on an

25
individual basis; Organizational buying behaviour is consists of three distinct aspects

as follows (Sheth, 1973):

 Psychological world of the individuals involved in making decisions

 Conditions which precipitate joint decisions among these individuals

 Process of joint decision making with the inevitable conflict amongdecision

makers and its resolution by resorting to a variety of tactics

Interestingly, and contrary to the common belief, many industrial buying decisions

are not solely in the hands of purchasing agents, and theseindividuals are identified in

the organizational buying model as purchasing agents, engineers, and users

respectively. Expectations defers among theseindividuals, including what they perceive

to be important, the decision-process they follow, and the purchase they make

(Bonoma, Zaltman & Johnston, 1977).

In our study on construction materials purchases, at least three departments (internal

party) within a construction firm whose members are continuously are involved in

different phases of the buying process:

 Procurement department

Purchasers who involves in compilation and evaluation of alternative

brands/ specification that meet the contract’s requirement; they are also

the person that issue the purchase orders after the decisions are made.

 Contract department

The department includes quantity surveyors (QS), contract executives and

26
contract manager that involves in functions such as: tenders, follow-up of

progressive claims, and ensuring the specification as stated in Bill of Quantities (BQ)

are adhered to, the department is also responsible to ensuring the construction firm

making a reasonable profit based to the awarded contract value

 Construction department

This department includes the project manager, site supervisor, clerk-of-

work and other site workers who are the actual users of the purchased

products. This group of people usually has the primary concern over the

product quality, prompt delivery, workability and on-site services when it

is needed as opposed to procurement and contract department that placed a

significant concern over the money to be spend on the purchases.

Buyer-Seller Relationship

The long-term relationship of loyalty and trust is recognized as an important aspect in

the success of B2B markets. Many literatures recognize “trust” element as a

prerequisite to building buyer-seller relationships and as a preceding state for the

development of commitment. Li & Rowley (2002) concluded that firms are likely to

choose supplier firms that are familiar to them, understanding their daily operations

and able to accommodate the changes in the requirement; the commitment toward

mutual benefits of both buying and selling company or the relationship of “business

partners” are crucial in a B2B business environment. Hence, preference is always

given to

27
those with whom the buying company have worked before. They rely on cooperative,

long term relationships with fewer suppliers in order to reduce

risk and uncertainty. One advantage for suppliers in such cooperative relationships is

the likelihood that they will be included in the consideration set when new purchases

are proposed. Suppliers that are viewed as more short term or transactional in nature

are likely to face more stringent requirement and a different set of evaluative criteria.

Hence, relationship-oriented suppliers are likely to be evaluated on attributes such as

trustworthiness, reliability and corporate credibility; while transaction-oriented

suppliers are likely to be evaluating on attributes such as product performance,

pricing andother more tangible criteria (Webster & Keller, 2004).

Perceived Purchase Risks

Purchasing agents are confronted with a myriad of stresses in their responsibilities.

One of the most important stress factors faced is the perceived risk associated with

making buying decisions – the purchase risk! Purchase risks can be defined in terms

of perception of the uncertainty and adverse consequences associated with buying a

product/ service (Dowling &Staelin, 1994).

There is an important distinction needs to be made between perceived risk in

consumer and industrial settings. For the consumer, risk perceptions involve the

uncertainty among choice alternatives and the potential for negative

28
consequences from the personal or household use of the product. Almost all consumer

research on perceived risk has assumed that only the person making the buying

decision is the locus of all the potential negative

consequences. In organizational buying, however, the purchasing agent also deals

with uncertainty but he or she is seldom the “actual user” of the purchased items.

Hence, in most circumstances the purchaser have limited knowledge to whether the

purchase decision is the correct one, and if the purchased items fulfil most of the

requirement needed by the “actual users”. Consequently, the purchase risks can be

from the perspective of the organization or of the individual buyer, as below:

 Performance risk to the organization

Such risk occurred when the purchased item unable to performance as what it is

expected. For example, a construction chemical additive is being use to boost the

curing time of concrete; site personnel are expecting the purchased items to reduce

the concrete curing time from 28 days to 10 days in order for the site to remove the

formworks earlier and kick-start other trades. Should the purchased additive unable

to meet the 10 days curing time, the construction progress will be delay. In a much

worst scenario, the building structure may collapse and causing loss of human life as

the pre-mature concrete slab/column will not be able to take the loads imposed on-to

it.

 Economic/monetary risk to the organization

Performance issue will eventually lead to monetary loss to the buying company;

Take the above example, when the wrong purchase decision

29
was made, and the construction chemical additive unable to meet the 10 days curing

time. It caused delays of construction progress, which in turn, resulting delay in

progressive claims. The idle site workers daily wages have to be paid despite the

concrete structures are not ready for

subsequent construction works. All of the above problems will then causing

unfavourable impact to the contraction firm’s cash flow.

 Psychosocial risk to the purchasing agent (purchaser)

Generally, the direct impacts causing by the mistake in purchase decisions will only hit

the company on both performance as well as monetary aspects. However, the

psychosocial risk is on the purchaser. Using the same example illustrated above, the

purchaser who made the wrong purchase decision and causing the performance and

monetary loss to the company will most likely have the fear of negative impressions

from its peers and co-workers. Such mistakes might also have an adverse effect on

promotion prospects on the purchaser if poor product choice is made repeatedly.

Newall (1977) defines organizational buying behaviour as an entirely function of risk.

While Cardozo (1980) identifying five types of purchase risks (uncertainties) as

below:

 Need uncertainty

Risks incurred due to unclear product or specification requirement, when the

purchasing agents do not have clear idea on what is requirement, it isunlikely that the

“right” product choice will be chosen.

 Technical uncertainty

Certain brand may have higher probability of product failure; for example Germen
30
made equipment are often perceived to be highly reliable as compared to a Taiwan

made equipment. In such scenario, the purchasing agents will need to strike a

balance among the budget allocates for the

31
purchase and the acceptable level of quality assurance the chosen brandcan provides.

 Market uncertainty

Market uncertainty covers risks arise from overall market stability, homogeneity and

intensity on its end products which literally causing disruption on the demand of

materials. Apparently, such purchase risk is beyond purchasing agents’ control.

However, the business analyst and/or marketing department should conduct regular

demand analysis on the forecasting sales on its end products for coming months,

quarters or eventhe next 1-3 years.

 Acceptance uncertainty

There are many standards that one business entity needs to adhere to in their daily

business operation. In a construction environment, if the purchase items causing

rejection from the authorities (i.e. Local Council, Land Offices, Jabatan Bomba &

etc.) and developer/project owner unable to obtain certificate of fitness to handover

the project. The contractor that undertakes the project, the architect that

select/approved the materials, and/or the consultant who design the building using

the chosen materialswill all in risks.

 Transaction uncertainty

Such risk are mainly relates to the reliability of the chosen supplier, whether it can

fulfil the order quantity within the agreed time frame, and has the financial muscles

in securing the necessary resources in completing the awarded contract.

32
Past researches shown that purchasing agents can respond to purchase risk in many

ways, such as:

 Involvement of larger buying centre (Spekman & Stern, 1979)

Purchasing group that includes individual and professionals with distinct

roles, function and agendas tends to better covers various aspects of

purchase consideration and hence reduce the uncertainties caused by

limited knowledge boundary of individual purchasing agent.

 Conversion of the purchase to a straight rebuy, which shifts the risk to the prior

decision maker (Puto et. al., 1985)

Each new purchase decision is only be made after systematic and

extensive information search, evaluation and debates between the various

individuals within the purchasing group to shortlist items that meet the

technical performance, budget constraints as well as reliability of the

supplying company. Converting a purchase into straight rebuy will be able

to eliminate majority of the uncertainties, as most factors have been

evaluated during the initial lengthy evaluation process.

Newall (1997) also suggested that purchase risk is a primary determinant of buyer

behaviour in organizational contexts. Studies by Mudambi (2002) also found that

brands can play a meaningful role in risky purchase situation. Such findings are

contrasts with the findings of established organizational buying models, which

suggest that buyers offset heightened levels of risk by pursuing disciplined purchasing

strategies built upon an extensive informationsearch process.

33
To a buyer that faced with an unfamiliar or newly important purchase, a strong B2B

brand can signal or symbolize expected brand performance. Brand signal such as

strong corporate reputation in specific products/ services environment helps mitigate

the purchase risk one face in an important and complex purchase situation. (Brown,

B.P., 2010) High corporate reputations strengthen customer’s confidence and reduce

purchase risk perceptions when they make judgement on the company performance and

quality of products or services. Company with good reputation are more likely to

perceive as trustworthy by customers (Hutton, 1997). In such environment, brands

function differently compared what they do in B2C markets. The role of B2B brands

in reducing perceived risk of a purchase is likely to be stronger because buyers face

two types of risk: organizational risk and personal risk (Hawes & Barnhouse, 1987).

Meanwhile, the brands in question are much less likely to provide emotional benefits

for the buyers (Wilson, 2000). Establishing brand power such as customer trust and

brand reputation are key determinants of B2B brand equity.

It is likely that brand awareness also plays a special role in driving brand equity in

B2B markets, as based on theory of information economics, brand awareness is

identified to be related to market performance through the reduction of perceived risk

and information costs for organizational buyers. (Erdem, Swait & Louviere, 2002).

The significant of the purchase decision in affecting the overall business objectives is

generally considered an important determinant of organizational buying behaviour,

while the levels of purchase

34
importance may affect a buying centre’s brand sensitivity because of the

variation they induce in the degree of purchase risk (Valla, 1982). Strong B2B brands

can play a significant role when purchasing agents seek to mitigate the heightened

risk and uncertainty inherent in certain B2B buying contexts (Webster & Keller,

2004; Homburg, Klarmann & Schmitt, 2010). This suggests that in certain

circumstances, the purchasing agents are likely to be more sensitive to brand

information than in others. Studies by Hutton (1997) discover that organizational

buyers are most likely to choose well-known brands when:

 Product failure would create serious problems for the buyer’s organization or

the buyer personally,

This is consistent to our earlier discussion on perceived purchase risk on

both performance and monetary aspects toward the organization, as well

as the psychosocial risks toward the individual purchaser.

 The product requires greater service or support,

An establish brand with proven track records is always in preference when

the purchased items require extensive customization, as well as after-

sales supports to ensure smooth operation.

 The product is complex,

Complication is always positively correlated uncertainty. The higher the

complexity, the higher the chances of something went wrong. It will also

require people with specific knowledge and technical know-how to use it.

Hence, an establish brand with proven track records is always in

preference compared to a new and up-coming brand.

35
  The purchase decisions are made under time and/or resource constraints.

The “objectivity” and “rational” decision made in an organization buying context is

built on the basis of the purchasing group will conducts some systematic and

extensive information search and evaluation before they come to a purchase decision

and product choice. Such evaluation process will not be possible if the purchasing

group does not have sufficient time resources to do the require information search.

Known brands have the emotional benefit of reducing perceived risk and uncertainty.

Hence, branding can benefit the B2B customer by increase purchase confidence.

While, buying a familiar brand may involve additional comfort and a “feel-good”

factor. Most procurement personnel take pride in their work, and feel good about

making the right choices. Even though we acknowledge the fact that organizational

buying model is objective up-to certain extend; but also cannot deny that there is

tendency of risk adverse characters among most purchasing agents, especially when

the purchasing decision involves major uncertainty and unanticipated consequences

that could adversely affected on the promotion prospects if poor product choice is

made. Beyond a certain threshold, purchasing agents will adopt various shortcuts and

decision heuristics, such as weighing brand information or the reputation of the

market leaders more heavily to reduce their cognitive strainand risk perception.

36
Dependent Variable

Brand Sensitivity

In B2B settings, branding is a multidimensional construct that includes product

characteristics, brand image, support and distribution services, company reputation

and company policy. It is generally related to an on-going relationship, corporate

reputation and services experiences (Bendixen, 2004). Brand sensitivity is defined as

the degree to which brand information get actively considered in an organizational

buying process (Hutton, 1997). It measures the importance of brands in the decision

making process of a buying act. Brand sensitivity will be operationalized as the value

that a purchasing agent places on a well-known brand, instead of an unknown or

generic brand of product offering during the product evaluation process (Brown,

B.P., 2010). Based on Kotler & Pfoerstsch (2006), brand management generally

contend that brand information playing the following roles:

 Facilitates the identification of products, services and businesses

 Communicates their benefits and value

 Reduce the perceived risk and complexity of the purchase decision

Considering one of the key roles of branding is to mitigate perceived purchase risk, a

strong B2B brand will help the purchasing agents to mitigate the heightened risk and

uncertainty inherent in certain B2B buying context (Webster & Keller, 2004). The

above findings further suggest that, in certain

37
scenario, purchase agents are likely to be relatively more sensitive to brand

information than in other scenario. Hence, brand sensitivity provides the key outcome

variable for this study as we focus on understanding “when” brands are most likely to

influence organizational buying process.

Independent Variables

Purchase Importance

Purchase importance refers to the buying centre’s perception of the relative impact of

the product purchase as it relates to business objectives (Cannon & Perreault, 1999).

The level of importance (i.e. risky and uncertainty) may not be in equal ground to all

individual that involves in the purchase decision making process, or in all purchase

situations (Johnston & Lewin, 1994). In a low levels of importance, risk should be

lower, hence purchasing agents will tends to place more consideration on-to other

information factors, such as: prices, discounts, credit terms offered, as well as

logistics and distribution. When purchase move up in term of the level of importance,

risk increases, and the relative importance of brand information should also increase

in tandem as a risk reduction mechanism (Chaiken, 1980).

Purchase Complexity

Purchase complexity is defined as the buying centre’s perception of the relative level

of sophistication or elaborateness of the product being ow

38
considered. Generally, complex product purchases tend to suffer more from

ambiguity and uncertainty (Cannon & Perreault, 1999). Generally, at low

levels of complexity, and information processing is manageable, purchasing agents

would evaluate objective and non-brand factors, and consider brand information as

only one of the several information factors in their product choice decision making

process. However, when it reach a high level of complexity, purchasing agents

should disproportionately rely on brand attributes that showcased a proven track

records over other more objective information as a way of managing their information

overload (Payne, 1976).

Time Pressure

Brand allow industrial buyers/ purchasing agents to reduce the time spent in selecting

alternative brands; strong brand signal less risky when addressing possible technical

problems and resolving internal production problems (Hutton, 1997). Hence, when

purchaser has limited time resources in evaluating all the information associates with

the product or its alternative, they will tend to look-up for the established and proven

brand/product that meets the budget allocation as a risk reduced mechanism measure.

39
Intervening Variable

Perceived Purchase Risk

Organizational buying literature suggests that individual risk minimization or

avoidance is a key motivating factor in the industrial buying process. Individuals of

the organizational buying centre are expected to have varying degrees of risk

propensity ranging from risk averse to risk prone. Member

who is risk averse is one who has a preference for an alternative whose outcome is

known with certainty over one having an equal or more favourable expected value

whose outcome is probabilistic (Puto et. al., 1985). In view that brand selection is

considered a strategy to reduce perceived purchase risk; it is assert that influential

buying centre members with risk adverse attitudes are likely to moderate the

relationship between the hypothesized buying centre, purchase situation and product/

relationship variables and brand sensitivity (Newall, 1997). The perceived purchase

risk can be further breakdown to organizational and individual level, which includes

performance & monetary risk to organization, and psychosocial risk to the purchasing

agent as we had discussed earlier. Two main factors that influence the level of

perceived purchase risks are: gender, and the different roles & functions that an

individual possess in the purchasing group.

40
 CHAPTER 3

RESEARCH METHODOLOGY

41
Research Methodology

The present study is descriptive in nature which is based on empirical evidences based on
primary data. A survey method has been used to collect the primary data with a structured
questionnaire. The questionnaires were filled up by respondents which were selected on the
basis of convenience sampling.

• Research design

Research design is descriptive in nature.

• Data Collection

There are two types of data.

Primary Data - Primary data is that type of data which is collected for the first time. These
data are basically observed and collected by the researcher for the first time.

Secondary Data - Secondary data are those data which are primarily collected by the other
for his own purpose and now we use these data for our purpose secondly.

For collection of data in my research report, I used both primary data collection method and
secondary data collection method. Primary data is collected with the help of structured
questionnaire. I prepared my questionnaire with the help of google form which contained
few basic questions related to consumers buying factor which push them to buy a particular
product. After preparation of questionnaire, I distributed it via Email, WhatsApp and
Instagram to get response.

42
I also used secondary data method for data collection and for writing literature review. I
studied more than 40 project report and used Google Scholar, ResearchGate and Wiley for
collection of relevant data.

• Period of the study

The period of the study covered 2 months.

• Sampling techniques

Sampling techniques is random sampling. Data on the various aspects, directly and indirectly
related to the investigation, were gathered through questionnaire to the respondent. The
questions are necessary to ensure the reliability of the information. The questions were
simple to understand so that information can be collected from various respondent easily.

The place of collection of data is New Delhi.

• Data analysis

Google form helped me a lot for data analysis because after the submission of the form
google automatically collected all the information in structured form.

43
 CHAPTER 4

DATA ANALYSIS & INTERPRETATION

AND FINDINGS

44
INTERPRETATION

There are many people who are giving 5 rating to b2b e-commerce because B2B business is a very
important part of e-commerce like you in example AMAZON, FLIPKART,, EBAY etc. can take

45
INTERPRETATION
Social media helpful for both B2B and B2C firms in generating new sales/clients. 63% of the people agree with it.
While others think in B2B everything is taken place in a formal way so it’s not possible to generate new sales through
the social media
INTERPRETATION
55.6% Extremely Satisfied, 38.9% Satisfied and 5.6% Neutral With The purpose of B2B marketing is to make other
businesses familiar with your brand name, the value of your product or service, and convert them into customers.

46
INTERPRETATION
According to a study by the Content Marketing Institute, 83% of B2B marketers are using social media as a content
marketing tactic.1 With a continuously-evolving landscape of channels used to distribute content, how do you decide
which ones are right for your business?

While B2B marketers still see email as the most important platform to overall content marketing success, LinkedIn
ranks higher than all other social platforms, followed by YouTube, Twitter, SlideShare, Facebook, Instagram, and
Google+

Here you can see according to my survey, 66.7% people have chosen instagram and 27.8% have chosen Facebook.

INTERPRETATION

Here you can see that there are more than 70% people who like to buy any product or service themselves. Because
whatever product and service they want to buy or take, they want to take it from their favorite.

47
INTERPRETATION
Research shows that generally, the consumer’s purchase decision is to buy the most preferred brand. Two ways
brands can influence a purchase intention is firstly give a consumer a promotion such as a discount of price whereas
the second way is by an offer, such as ‘2 For’ campaign or a gift with purchase.

Having a consistent brand will create ideas and beliefs towards a brand. Therefore, if an individual has a good or bad
feeling associated with a brand this can create a hate or love perception for that company which results in brand
loyalty or the opposite, so brands need to be original and meaningful.

Here you can see that 53.7% people agree and 31.5% people strongly agree. This means that people are more
inclined to agree about the brand experience affecting consumers' purchasing decisions.

48
INTERPRETATION
It shows that most of the people are familiar with Instagram in comparison with other sites like Facebook,Twitter
and LinkedIn. Cab providers like Ola Cabs and Taxi For Sure are more active in Twitter than facebook. So it depends
on different industries.

INTERPRETATION 49

Most of the people do follow their favourite brands in Facebook and twitter to know about their offerings and all.
INTERPRETATION
38.9% of people follow their favourite brands just because you like those brands. 38.9% are very keen to know about
their new offerings while 22.2% follow to know how well they are in marketing

INTERPRETATION
There are more than 70% people who prefer both online shopping and offline shopping. Because no one can depend
on only one mode. Because there are some such products which have to be bought immediately, so online will not
be able to buy immediately and some such products which we can buy online at cheap prices.
50
INTERPRETATION
55.6% are people who spend 1-2 hours of time to use products and services. There are 33.3% people who
take less than 1 hour and 9.3% people who take 2-5 hours and 1.9% people who take more than 5 hours.

51
INTERPRETATION
50% are people who Takes 1-6 hours of time to use make a buying decision. There are 18.5% people who
takes 20-60 Minutes, 18.5% people who take less than 30 Minutes , 9.3% people who take more than 6-24
hours and 3.7% who take more tha 24hours.

52
INTERPRETATION
Competition is at the heart of capitalism. Even if you think there are better ways to set up an economy, you
can’t deny that competition motivates people to work harder. It forces businesses to innovate their products.
It inspires team spirit among employees at a company. A lot of teams bond through having a common goal.
One of those goals could be surpassing the competition in sales, new customers, or market share. Your
employees, especially if they work on commission, will be more motivated to keep customers when there’s
more competition around them. When competition comes up with a new product, marketing technique, or
way to run their business, it keeps your company on its toes and moving towards innovation. Competition
inspires growth, progress, and creativity. When things get competitive, you might take a bigger risk in the
hopes of a big reward. You can’t just stay the same and hope to keep your customers as times change and
new names enter your industry.

Here you can see that 55.6% people Very likely and 29.6% people likely. This means that people are more
inclined to extremely likely to switch to a competing organization.

53
54
FINDINGS: -

 The first and the major problem is that the company does not have direct and permanent contract
with retailers. It is general complain that there is a big communication gap between the company and
the retailers and no one is to solve their problem.

 The second problem of retailers is non availability of quick response of distributors.

 Distributors do not send the ready stock and thus the delivery man suffers the problems when the
retailer demands in emergency.

 One of the major problems is i.e. they are the price difference. They are getting same product in
different price from others suppliers (the other suppliers are giving on less price and schemes) thus
this problem is very big for distributors and suppliers both.

 Second problem is wholesale market; the wholesale market is creating problem entering in
distributors areas.

 The problem faced by the distributors is lack of stands in market. This problem disturbs the
distributors and retailers both. Retailers demand stands to distributors because executive of others
company does not allow to use their stands to put our product.

 There are no any wall paintings or banners in canteens as signage of Haldiram's product while the
competitors are providing many facilities like this.

55
CONCLUSION: -

The final distinguishing factor of B2B buyers is a suitable conclusion to this paper: simply that business-to-
business buyers are more demanding. They have a responsibility to make the right decision when
purchasing on behalf of their companies. They take less risks and therefore need quality to be absolutely
right. They have the expertise to recognize a bad offering when they see one. They are used to getting what
they want. They are often paying more than they would as a consumer and therefore expect more in return.
They are likely to regard themselves as interacting with the product or service supplied to them, rather than
playing the role of passive recipient.

The implications for business-to-business marketers are clear. It is our job to meet the target audience’s
needs; we must therefore raise our game to ensure that our product, services and intangibles meet and
exceed customers’ requirements.

In our favor is the fact that business-to-business buyers are more predictable than their consumer
counterparts. This means that good quality market intelligence and close attention to our target markets’
needs place us in a strong position to meet the needs of the market.

Around the time of B2B International’s inception in the 1990s, a key challenge we faced was explaining to
potential customers that our skills as business-to-business market researchers and marketers were unique.
There was a frequent dismissal of the idea that b2b marketing – and therefore the techniques used to explore
these markets – were in any meaningful way distinct from consumer marketing.

Over the past 20 years, however, b2b marketing has emerged as a discipline in its own right and divergences
in marketing practice have been accentuated. We feel it is worth reiterating the many differences between
the two disciplines and, above all, pointing out the implications of these differences when it comes to
implementing a business-to-business marketing strategy.

56
SUGGESTIONS: -

 Company should consider the problems of retailers and canteen's owner.

 Company should problems of distributors.
 Resettlement of dispute like non payments and wrong commitment problems is necessary by another
executive.
 Stand should be provided to needy retailers because another company's executive creates problem.
 Company should give the stands and racks to each and every counters where its product is sold.
 Company should prevent the interference of distributor in each others areas.
 Company should prevent the undercutting in market.
 Company should prevent the wholesale disturbance.
 Company should give the incentives to its executives as extra benefits after salary.
 Company should listen and care of sales executive.
 Company should recognize the problems in market.
 The very necessary work is market screening and recognizing the strength and weaknesses of
competitors.

57
LIMITATIONS: -

The present study was not out of limitations. I have faced some obstacles at the time of preparingthis report.
But as an intern it was a great opportunity for me to know the sales activities and themarketing strategy.
Some constraints are as follow

One of the major limitations is the shortage of time. Since the officials had no enough time torespond toward
my query but they had tried their best to help me to provide information.

Because of the limitations of various sources of information the report doesn't contain manyimportant
information and data. So, I was incapable to provide valuable information.

The main constraints of the study are inadequate access of information, which has hamperedthe scope of
analysis required for the study.

58
 BIBLIOGRAPHY
ELLIS, Nick. Business-to-Business Marketing Relationships, Networks, Strategies. 1st Ed. 2011, 384 s.
ISBN: 978-0-19-955168-2
GLYNN, Mark, WOODSIDE, Arch. Business-to-Business Brand Management: Theory, Research and
Executive Case Study Exercices. 1st ed. Emerald. 2009, 144 s. ISBN: 978-1- 84855-670-6

COE,John M. The New Fundamentals of Business-to-Business Sales and Marketing . 1st Ed. 2003, 266 s.
KOTLER, Philip, B2B Brand Management. 1st ed. Springer, 357 s. ISBN: 3540253602

MATHUR, U. C. Business to Business Marketing, 1st ed. New Age International Limited (P) Publishers.
2008. 604 s. ISBN: 978-81-224-2939-8
VW Santa Monica, Volkswagen DSG Successfully Reaches 3.5 million Units Sold. [online], weblog post,
April 2011, Available from:

http://www.imakenews.com/vwsantamonica/e_article002065765.cfm?x=b11,0,w

ZIMMERMANN, Alan, BLYTHE, Jim. Business to Business Marketing Management, A Global

Perspective. 2nd ed. Routledge. 2013. 115 s, ISBN: 978-0-415-53702-5
PHILIP KOTLER, GARY ARMSTRONG, PRAFULLA Y. AGNIHOTRI, ESHAN UL Haque 2010. A
South Asian Perspective, 13th Edition.

Pallant, Julie (2007). SPSS Survival Manual, 3rd edition, Open University Press, The McGraw-Hill
Companies
Malhotra, N. K. (2004). Marketing research: an applied orientation, 4th edition, Prentice-Hall International,
London

William G Zikmund, Barry J Babin, Jon C Carr(2009). Business Research Methods, 8th Edition, South
Western Educational Publishing, United States.

59
 Questionnaire

Q1. How would you rate your satisfaction on B2B E-commerce.

1
2

3
4

Q2. Is social media helpful for B2B firms in generating new sales/clients?
Yes
No
It depends how reputed the firm is.

Q3. The purpose of B2B marketing is to make other businesses familiar with your brand name, the value of
your product or service, and convert them into customers.

Extremely satisfied

Satisfied

Neutral

Q4. The Best Social Media Platform to Use for B2B Marketing

Facebook

Twitter

Instagram

Linkdin

Q5. Who did you purchase products for?

Self

Family member

Friend

Colleague

On behalf of a business 60

Other
Q6. Does Brand Experience Affect Consumers Purchasing Decisions

Strongly Agree

Agree

Neutral

Disagree

Strongly disagree

Q7. Which one do you think is the most effective social networking
site for online marketing?

Twitter

Facebook

LinkedIn

Instagram

Q8. Do you follow your favourite brands on social networking sites

like Facebook,twitter and LinkedIn?

Yes

No

Q9. If yes, why do you follow them?

Just because you like that brands

You are very keen to know about their new offerings

To know how good they are in marketing

Q10. Where do you go when you are looking for Buying Products.

Offline/Retailer shop

Online Shopping

Both

Q11. Rank the following items in terms of their priority to your purchasing process.

Helpful staff

Quality of product

Price of product
61
Ease of purchase

Proximity of store
Online accessibility

Current need

Appearance of product

Q13. How much time do you spend using [product or service]?

Less than 1 Hour

About 1 - 2 Hours

Between 2 and 5 Hours

More than 5 Hours

Q14. How long does it take you to make a buying decision.

Less than 30 minutes

30-60 minutes

1-6 hours

6-24 hours

More than 24 hours

Q15.How likely are you to switch to a competing organization?

Very likely

Likely

Neutral

Somewhat likely

Not likely

62