Industrial Marketing

or
Business Marketing
Management
or
B 2 B Marketing
Student Introduction

• Name
• School and college
• What do you know about this subject
• What are your expectations from the course
B 2 B - Introduction
• Lucrative and complex market worthy of separate analysis
• Reasons for interest
• More than half of all business school graduates end up in
organizations that fall in this domain
• Largest market of all
• In addition to pure B2B businesses there are hybrids as well
B2B vs B2C Marketing

• B2B and B2C (business-to-consumer) marketing are

very different. B2B and B2C marketing differ in their
respective strategies and applications, as well as in
their audiences and how they communicate to
them.
B2B Marketing
B2B marketing targets the needs, interests, and
challenges of individuals who are making purchases
on behalf of, or for, their organization (rather than for
themselves), thus making the organization the
customer. Here are a few examples of B2B
companies:
• A coworking space that leases office spaces to remote
teams
• An on-demand order fulfilment, warehousing, and
screen-printing service
• A marketing software company that sells social media
management tools, lead generation software, and other
marketing tools to businesses and organizations
B2B Marketing
B2C marketing targets the needs, interests, and
challenges of individual consumers who are making
purchases on behalf of, or for, themselves, thus
making the individual the customer. Here are a few
examples of B2C companies:
• An e-commerce company that sells office supplies to
remote or self-employed individuals
• A store that sells t-shirts and other clothing and
accessories
• A music platform that sells streaming subscriptions
B2B Marketing

Local to international
• Bought by
• Businesses
• Government bodies
• Institutions
• For consumption
• For use
• For resale
What Distinguishes B2B from B2C?
• B2B: goods or services are sold for any use other than
personal consumption
• Note: The difference is not the nature of the product; it
is the buyer and reason for purchase.
B2B vs B2C MARKETING of SALT
Business Marketing Consumer Marketing
BBQ Tonite
Salt is added to
fries
You

Salt mine National Salt Imtiaz

Salt is sold in
shakers
Salt is mined Salt is processed into
food-grade or
industrial grade salt K&N
Salt is added to
frozen food

1-10
B2B vs B2C Marketing
• You buy a gear to fix your mountain
bike.
• A factory buys the same gear to
manufacture mountain bikes.
• Engro purchases food to serve its
employees at a training session.
B2B vs B2C Marketing
• Is Google a B2B business or B2C business
A Market Driven Firm
Has:
•Market sensing capability…company’s ability to
sense change and to anticipate customer responses.
•Customer linking…the ability to develop and
manage close customer relationships.
Marketing’s Cross Functional Relationship
Keys to Cross Functional Working
Relationships

• Communications
• Perspective taking
• Responsive behavior
• Compatibility
Business Market Characteristics

• Derived demand
• Fluctuating demand
• Stimulating demand
• Price sensitivity/demand elasticity
• Global Market perspective
Marketing Tasks

• Partnering for increased value

• Focus on competencies and synergies
• Creating the Value Proposition
• Points of parity
• Points of difference
• Relationship Marketing
• All marketing activities directed towards
establishing, developing, and maintaining
successful exchanges with customers.
Characteristics of Business
Market Customers

• Comprises of organizations rather than

individuals
• Buy in much larger volumes
• Demand is derived
• Close and enduring relations with marketer
• Multiple buying influences
The Supply Chain

Michael Porter and Victor Millar observed that “to gain

competitive advantage over its rivals, a company must either
perform these activities at a lower cost or perform them in a way
that leads to differentiation and a premium (more value).”
Procurement Trends
• Longer term and closer relationships.
• Closer interactions among multiple functions.
• Supplier proximity considerations.
Business Market Customer
Commercial Enterprises

• Three categories:
• Users
• OEMs
• Dealers and distributors
• Overlaps
Classifying
Goods for the
Business
Market
A Framework for Business Marketing Management