Introduction to B2B Marketing

Welcome to the Course

 Teaching Context
Understand Technology:
WebEx Platform
Learning Management System (LMS)

Understand Your Role:

Self-Discipline
Self-Motivation
Learning from multiple sources e.g. Peers learning

My Role: Facilitator

 Expectations
What do you expect from the course?
 Course Assessment and Schedule
Overall CLO
Assessment Weightage
Schedule Weightage Number
Component %
%  
Quiz-1 10
After 10th, 20th, and
Quiz 2 10 30 1,2,4
& 30th sessions
Quiz 3 10
Continuous
(Case/Article
Group Assignment 1 15 2,4
Presentations)
 
30
Group Assignment 2 15 To be given after 20th
2,3
session & Submission
by 35thsession
As per Exam. Office
End-Term Exam 40 40 1,2,3
schedule
 Group formation guidelines
Class Coordinator
Group size: 4-5 members
Total number of groups: 10
 Key aspects of B2B Marketing
E-commerce
/Technology
side

Purchase side Sales side

B2B Marketing

Supply Chain
Side
 Sales Side of B2B Marketing
Role of personal selling in b2b market
Relationship building
Team selling approach
Key/Major account management
 Purchase Side of B2B Marketing
Purchase process
Buying center
Roles of buying center in purchase decision
Buying situations
Toolkit for purchase managers
 E-commerce Side of B2B Marketing
Role of e-commerce in purchasing
E-commerce business models
Reverse auctions
Cloud computing in b2b firms
Online selling to business customers
 Supply-chain Side of B2B Marketing
Supply-chain integration
Role of technology in integration
Quality management in supply-chain
 Outcome of B2B Marketing Course
Integrationof 4 sides of b2b market
Design effective marketing strategy
Segmentation (Micro & Macro)
 Outcome of B2B Marketing Course
Types of channel
Channel structure & Design Distribution
Role of channel in service Strategy

Pricing Methods
Value based pricing

Product Pricing
Effective Marketing
Strategy Strategy
Strategy
Branding of b2b Products
Product Innovation
Types of Products
Customization
Services
Advertising & Sales Promotion
Promotion
Personal selling
Strategy
Social media
 Key Jobs in B2B Marketing
Salesmanager
Purchase manager
Marketing manager
Key account manager
System integrator/consultant (e.g. ERP)
Brand manager
Supply chain manager
 What is B2B Marketing
Itis a marketing of products/services to business
customers for ‘incorporation’, ‘use’, ‘resale’ and
for ‘consumption’.
Incorporation – e.g. components or raw materials
(Intel to HP)
Use – e.g. Packaging system, Tools (Bosch to
Zydus)
Resale – e.g. Air compressor (Atlas distributor to
Amul India)
Consumption – e.g. office supplier or consulting
service (BCG to Tata)
Key factors: Nature of customer, and intended use
of the product.
 Why B2B Marketing is important?
B2C is everywhere.
Car
Power B2C Buyer
Steering Dealer
Individuals/
System
Households
Johnson Control
B2B B2B
Dow Chemicals
B2B
ABS Dash Honda
Styrene
B2B Plastic B2B Board B2B (Mfg)

DuPont
B2B
B2B

Fleet Owners Car

Production Buyer
Travelers
System
e.g. Ola,
Uber
Top B2B Firms/brands
 Types of Business Customers

Commercial Manufacturers, Construction firms

Firms Wholesalers, Retailers etc.

Central State
Governments
Government Government
Municipal Corporation
Educational Healthcare Org.
Institutions
Institutes Nonprofits Org.
Type of Business Customers: Commercial Enterprises

Three categories of Commercial Customers:

• Users
• OEMs
• Dealers and distributors
 Users
Users purchase industrial products or services
to produce other goods or services that are, in
turn, sold in the business or consumer markets.

Example: Tata Motors buys machines (e.g.

Production system or equipment) to produce
automobiles that are sold to consumers and
businesses.

Tata Motors is a user.

 OEMs
• Original Equipment Manufacturers
Organizations that buy business goods and
incorporate them into the products that they
produce for eventual sale to other producers or
to consumers.
• Honda is OEM while buying tires from CEAT
• HP is OEM while buying microprocessor from
Intel
 B2B v/s B2C Marketing
Sr. No. Criteria Consumer Marketing Business Marketing

1 Customers Numerous, Widely Few, Concentrated

dispersed geographically e.g. Pharmaceutical
e.g. drugs buyers companies

2 Demand Primary Derived demand

e.g. 2 wheelers buyers e.g. Tires manufacturers
3 Buying behavior Simple Complex (Professional
(Individual/household is buyers)
involved) e.g. Buying an ERP
e.g. buying a car system

4 Buyer/Seller Very little Very close, long-term

Relationships relationships.
Interact regularly

5 Product Standardize Complex, Technical &

Buying several items service is very important
from D’Mart. e.g. Air-compressor
 B2B v/s B2C Marketing
Sr. No. Criteria Consumer Marketing Business Marketing

6 Price Fixed price, e.g. MRP Negotiated, Bidding

process,
List price for standard
products e.g. office
supplies
7 Distribution Mostly indirect, several Mostly direct, few
intermediaries are intermediaries are
involved involved
8 Promotion Heavy, Mass advertising Selective, Primary
personal selling
 B2C and B2B
The Consumer Market (B2C) and the Business Market (B2B) at

Wipro
Infotech

B2C B2B

Customers: Individuals Global firms Institutions Government

& Large corporations Healthcare State
Households Small & Medium Education Central
sized businesses

Selected PCs PCs

Products Printers Enterprise Storage
: Laptops Servers
Simple Service Complex Service
Offerings
 Business Market Demand Characteristics

Derived demand
Fluctuating demand
Stimulating demand
Price sensitivity
 Derived Demand
The demand for business products is derived from
the ultimate demand for consumer products.

As a result, business marketers must carefully

monitor fluctuating trends and patterns in
consumer markets.

E.g.
demand of cement depends on demand of
home in consumer market.
 Fluctuating Demand
Because demand is derived, an increase or decrease in
consumer demand can create a fluctuating demand for
many industrial products.

Example:
 An increase in home loan rates can quickly reduce
new home sales.
 This slows down the need for new household
products.
 Businesses react by decreasing their inventory of
materials or putting off buying new machinery.
 This will fluctuate the demand for component
manufacturers of house hold product.
 E.g. AC, Television, Mixer etc.
 Stimulating Demand
Sometimes, business marketers need to stimulate
demand for consumer goods which either
incorporate their products or are used to make
consumer products.

 Intel advertise its microprocessor on television through

‘Intel Inside’ campaign to the ultimate consumer.
What Are Business Products?

• Used to manufacture
other products
• Become part of another product Key is the
• Aid in the normal operations of product’s
an organization intended
• Are acquired for resale use
without change in form
• A product purchased for personal
use is considered a consumer good
 Consumer Product or Business Product?
Mentioned earlier, the intended use determines
whether or not a product is a consumer product
or a business product

◦ If Harpic is used by the ultimate consumer to clean

his/her house, it is a consumer product.

◦ If Harpic is being used to clean a hospital or a

university, it is a business product.
 Classifying Goods for the Business Market

Classify industrial goods by

asking the following:
How does the good or
service enter the
production process?

Source: Adapted from Philip

Kotler, Marketing Management:
Analysis, Planning, and Control,
4th ed. (Englewood Cliffs, N.J.:
Prentice-Hall, 1980), p. 172,
with permission of Prentice-
Hall, Inc.
 Why Goods Classification?
Entering Goods Foundation Goods Facilitating Goods

Mostly Standardize Mostly Customized Mostly Standardize except

e.g. Coal, oil, steel, e.g. production, packaging services
tires etc. systems, elevators, buildings, e.g. Lubricants, screw,
JCB etc. paints, spanners etc.

Purchase in large Product is technical and Intensive distribution is

quantities important required to provide goods.
Competitive price Service capability is very E-procurement is used.
Reliable delivery critical Efficient ordering system

If customized, Direct channel is required, Catalogue advertising, and

Personal selling & Personal selling is crucial, less personal selling,
CRM is important Less price sensitivity, Personal selling for channel
Focus on advancing Quality is more important, management,
customer’s competitive Product’s technical Price is very competitive
position. knowledge is important (commodity),
Broad product assortment
and fast delivery
 Role of sales person in B2B Marketing

Internal External
Business
Linkage Linkage Customer
Marketing Sales
Organizati
Firm Person
on
(Mfg.)

• Inter-functional Coordination within Organization

• Information sharing with customer and marketing
firm
• Integration of manufacturing operation with
purchasing requirements of customers
Thank You

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