Business to Business Marketing (B2B)

Lecture -4
Introduction to B2B Marketing

Dr. Jogendra Kumar Nayak

Department of Management Studies, IIT Roorkee

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 Consumer Marketing B2B Marketing

Few quality test Quality Check Done

Relatively Ignorant Buyers Informed buyers Decision

Making
Amateur decisions /Single Professional Decisions/Joint

Less Negotiation More Negotiation

B2C & B2B marketing
at DELL
More number of
Less No. of Influencers
influencers

2
 Consumer Marketing B2B Marketing

Small unit of Sale Large Quantity

Products
Service is less important Service is strategic key

Standardized Products Customized Products

B2C & B2B marketing

Less Cost of Maintenance More Maintenance at DELL

3
 Consumer Marketing B2B Marketing

Single transaction negligible Every Transaction is significant

List Price Selling Competitive Bidding Price

No negotiation Negotiation on price is must

Simple price policies Complex Pricing

B2C & B2B marketing
at DELL
No leasing of Products Leasing is done

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 Consumer Marketing B2B Marketing

Sales through retail outlets Sales through

middlemen
Channel
Possibility of long Normally Short
channel Channel

More sales outlets Less outlets

B2C & B2B marketing

More stock holding Less stock holding at DELL

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 Consumer Marketing B2B Marketing

Mass Advertising Personal Selling

Promotion
Fanciful, Imaginative Rational & Factual
themes

Role of salespeople is Role of salespeople is

persuasion problem solving B2C & B2B marketing
at DELL

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 Consumer Marketing B2B Marketing

Simple & Short Complex & Lengthy

Small & Frequent Orders

Large & Infrequent Purchase
orders
Decision
No Contractual Penalties Commonly Involved

Weak Vendor Loyalty High Vendor Loyalty

B2C & B2B marketing
at DELL
EOQ model of Buying JIT model of Buying

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 The demand for industrial product simply means the quantity of
Industrial Demand industrial goods which businesses are demanding in total.

B2C & B2B marketing

at DELL

Source: Annual Report, Ministry of Steel, Government of India

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 Can B2B products be understood from a product level
Product Levels perspective too?

B2C & B2B marketing

at DELL

Source: Philip Kotler

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Step 1: What is your core product?

Customers buy core products to fulfil a need

Why do people buy your product?
What are their core needs?
What benefit do they get from purchasing your product?

B2C & B2B marketing

at DELL
Core need: Digital Image Processing.

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Step 2: What are your generic products?
Generic products are made up of the various qualities and features
of your products

• What features does your product contain that meets customers’ needs?
• What benefit does the customer get from each feature?
• What are the opportunities for improving the generic product?

B2C & B2B marketing

at DELL
Generic: The need to process digital images could be satisfied by a generic, low-end,
personal computer using free image processing software or a processing laboratory.

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Step 3: What are your customers expectation from product?
Expectations (as the word suggests) are what people imagine they
will get from the product they buy.

• What expectations do people have of the product? (for example that it will last for ever, that it
will never break down, that it will give them status etc)

B2C & B2B marketing

at DELL
Expectation: The computer is specified to deliver fast image processing and
has a high-resolution, accurate colour screen.

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Step 4: What are the Augmented aspects of your product?
Augmented products are those elements that differentiate the
product from the competition. These could be intangible aspects
such as brand and image.

• How do your customers perceive your brand to be different from the competition?
• What do your customers value about your brand?

B2C & B2B marketing

at DELL
Augmented: the computer comes pre-loaded with a high-end image processing software
for no extra cost or at a deeply discounted, incremental cost.

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Step 5: What are the potential components your product offers?
Products and offers have to change. We now look at the future
components of the offer.
• What are the unmet needs of customers about your product?
• How easy is it to fulfil this unmet need?
• How will fulfilling the unmet need affect demand for your product?

B2C & B2B marketing

at DELL
Potential: the customer receives ongoing image processing software
upgrades with new and useful features.

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