B2B Marketing

Dr. Parag Amin

profparagamin/B2BMarketing/19-21
The B2B Buying Process
• Problem recognition and need description
• Product or Service specifications
• Search for suppliers
• Seeking proposals
• RFI (Request for Information)
• RFQ (Request for Proposal)
• Tender
• Analyzing the proposals
• Shortlisting and selecting supplier
• Reviewing performance
profparagamin/B2BMarketing/19-21
The Buy Grid or Buying situations
• 3 Types of Buying situations
• New Buy
• Straight Rebuy
• Modified Rebuy

profparagamin/B2BMarketing/19-21
B2B Marketing

Seller Buyer
• Finance(1) • Finance(1)
• Production(2) • Production(2)
• Marketing(3) • Marketing(3)
• Purchase(4) • Purchase(4)
• R & D(5) • R & D(5)

profparagamin/B2BMarketing/19-21
Selling and Buying in B2B
Seller Buyer

1 1

2 2

3 3

4 4

5 5

B2B actually also means B2B2C

profparagamin/B2BMarketing/19-21
Roles in Buying Centre
• Buyer
• Influencer
• Decider
• Gatekeeper
• Initiator

profparagamin/B2BMarketing/19-21
Points to be noted about Buying Centre
• Various entities (roles) involved in the process
• Purchase criteria may vary
• Each entity involved may have different “weight” of involvement

profparagamin/B2BMarketing/19-21
Selling Centre
• Sales persons may be less in number compared to entities in Buying
centre
• Sales person may not have the expertise on the product / service that
she/he is selling
• Sales Person may not be aware of the entities involved at the buying
centre and their “weight”

profparagamin/B2BMarketing/19-21
Key points to remember
• In B2B Marketing, relationship between buyer and seller as well as
within buying centre is very critical
• Early involvement may help in identifying “windows of opportunity”
• One should think of “Total Marketing” approach in which entire
multiple departments gets involved.
• Depending on the situation, one of the team members or department
should lead the sales as the Captain

profparagamin/B2BMarketing/19-21
The 4 W’s approach
Who
B1 B2 B3 B4
When
Problem
recognition
Specifications
Search for
Suppliers
Seeking
Proposals
Analyzing
Proposals
Shortlisting
Vendor
Reviewing
Performance
profparagamin/B2BMarketing/19-21
B2B Marketing
Product

profparagamin/B2BMarketing/19-21
Total Product System
Seller Buyer
Pre-sales • Team approach
1 1 • Differentiation can be at any stage
• Pre-sales can lock buyers
2 2 • Post-sales could earn profits

3 3
Main Product
4 4

5 5

Post Sales

B2B actually also means B2B2C

profparagamin/B2BMarketing/19-21
Value-Stack
• Buyer (members of buying centre) can differ in defining value-
• Different units of the customer’s company (buyer)may perceive value
differently (even partially)
• Similarly, different units may receive value differently
• This thus needs to be addressed by building a value stack and making
the units aware of it
• Selling centre can build different configurations of value-stack
• The value may vary based on how components are stacked

profparagamin/B2BMarketing/19-21
Value Stack-Distribution of Value elements
R & D-
Newer versions Purchasing- IT Systems-
Cost Compatibility

Manufacturing- Logistics-
User Convenience Total costs

Adapted from Narayandas 2002)

profparagamin/B2BMarketing/19-21