B2B and DM
Content
Business to Business Marketing
Tools of Learning
Interactive Presentations
Management
Games
Role Plays
Corporate Consumer Consultant
What is Important
Closer to Corporate In touch with reality Shot at Formal Education
Read
Extract and Impart
THE BEST MARKETING IS DONE BY ?
What did Drucker Say?
“ The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself.” That is, the product should come from a deep understanding of the market of customers.
YOUR UNDERSTANDING
Complex Trade Conducted Between Two Organizations
“Business Marketing is the practice of individuals, or organizations, including commercial businesses, governments and institutions, facilitating the sale of their products or services to other companies or organizations that in turn resell them, use them as components in products or services they offer, or use them to support their operations”``
Top B2B Brands
EXERCISE : DIFFERENCE BETWEEN B2B AND B2C
VIDEO B2B: SELECTING, DEVELOPING AND MANAGING CUSTOMER RELATIONS
B2B and B2C
B2B Marketing
• Vision Setting( who does it) • Fewer Purchasers • Multiple Decision Making Interfaces • Individuals are tech-commercially competent • Evaluator may or may not represent personal need • Credit and blame can be shared • Lesser sales Point of Contacts • Long term engagement and gestation
B2C Marketing
• Marketing Push • Individual Customers and stakeholders • Reflects individual requirements and needs • Peer consulting and influence • Greater perceived risk • Long arm distribution • Customers to point of sales
In Brief
Perspective Business Markets Consumer Markets Large no. of buyers Individual customer Limited stakeholders Support Technically and commercially aware individuals Knowledge levels are high Influence/Risk More widespread Look to their peers Participation in market place Fewer purchasers Buying decision more than one person is involved in buying decisions
Knowledge levels are low Greater individual risk
Critical Considerations: B2B and B2C
Areas of Difference Market Characteristics B2B Market Geographically Concentrated Relatively Fewer Buyer Lesser but larger deals Consumer Market Geographically Disbursed Mass Market Multiple but smaller purchases
Product Characteristic
Technical Complex
Customized
Standardized
Service Characteristic
Service , timely Availability extremely Important
Somewhat Important
Buying Behavior
Involvement of Various functional area from both the ends
Purchase Decisions are performance based and rational
Involvement of family members
Purchase decisions are mostly based on Physiological /social/psychological needs
Technical Expertise
Stable Interpersonal relationship
Relatively less technical expertise is required
Non- Personal relationship
Goals of B2B Purchasing
Uninterrupted Availability Manage Inventory Improve Quality
Developing and Managing Supplier relationships
Achieve Lowest TCO
Reduce Administrative cost
Advance Firms Competitive Position
Agents of Change for B2B Management
Data Explosion
New channel of information, communication and reach Changing Landscape with digital integration
Web
Information management sophistication has increased Performance information is more readily available leading to new ways of B2B management decisions
Brands displaying high quality positioning themselves as affordable in bulk deals B2B companies need to worry about apples being compared to oranges(Huawei and Ericsson)
Enhanced Brands Emphasis
Affiliate marketing is bringing new business models to consider
Agents of Change for B2B Management
Breakeven and profits can only happen with repeat purchases Loyalty has overtaken churn(brand shifters)
Local companies coming up as dark horses Trade blocs being formed in group of countries
Glocal Competition
Both sides have equal access to sales and marketing data
Enhanced customer retention and loyalty
Balance shifted from manufacturer to customer
Shift in Balance of Power
CLV(Customer Lifetime Value) is a strong concept
Now the war is of worldwide competition
THINK ABOUT A PRODUCT OR SERVICE LAUNCHED BUT NOT PERFORMING ADEQUATELY.
QUAD A: ENOUGH MARKET KNOWLEDGE BUT POOR AWARENESS
QUAD B : GOOD MARKET KNOWLEDGE, GOOD AWARENESS BUT STILL UNDERPERFORMING QUAD C: BAD MARKET KNOWLEDGE, BAD PRODUCT
QUAD D: MARKET NEED EXISTED, PRODUCT DESIRED TO MEET IT BUT LACKS SOMETHING CRITICAL TO MEET THE REQUIREMENT AS ‘PERCEIVED BY THE MARKET’
M ar ke t K n o wl e dg e
Quad A
Quad B
B2B Product Domain
Quad C
Quad D
Product Profile / Launch
M ar ke t K n o wl e dg e
Quad A
Quad B
B2B Product Domain
Quad C
Quad D
Product Profile / Launch
Problem Analysis Quadrants
Home work
(Sony Tablets)
Resources and Timelines, Policy Changes, External Environment
M ar ke t K n o wl e dg e
Product Pricing Channel
Google in China
Chinese Telecom Products in India Product Management
Selection, Strategy, Execution Onida Mobile Phones
Market Research and Training Mhealth, BP Lubes, Lens Kart, Titan Eye
3G Network and Services
Product Profile
Marketing Characteristics
Mass Advertising.
Industry Normally focused on technical media. Not normally TV. Often very suitable due to small numbers Often very suitable for company specialists
Direct Mail Face to face selling by specialists Hospitality Editorial. Publicity. Discounting. Specialist exhibitions and or trade shows. Point of sale displays and communications.
Consumer Often suitable and used including TV, Radio and mass circulation print advertising. Sometimes not viable due to high numbers & low value. Rarely suitable for individual items to end users.
Very suitable because of often high Not often used business value per decision maker Very suitable in targeted print Sometimes suitable. media. Suitable Suitable Often to reward volume customers. Discount sales are often used for sales promotion. Often used for high value Mainly suitable for items selling items(Build Con) to retail buyers(Times Utsav) Not often used Extensive use.
Industry
Consumer
Direct sales force
Used for extensive account management
Sometimes used.
Used where needed to sell to resellers more than to actual consumers.
Often used in chain before retailers especially in export markets.
Wholesalers
Distributors Catalogues Commissioned Agents E-Commerce via Internet
Seldom, unless relationship Regular is there with B2B company Form part of direct sales Often used. Form part of distribution chains. Sometimes used.
Becoming more prevalent to Becoming more prevalent at cut out intermediaries retailers, less so for manufacturers because of their narrow ranges. No direct evidence Used often by specific organizations
23
Multi-level marketing
Tools of Learning
Interactive Presentations
Management
Games
Role Plays
Corporate Consumer Consultant
What is Important
Closer to Corporate In touch with reality Shot at Formal Education
Read
Extract and Impart
THE BEST MARKETING IS DONE BY ?
What did Drucker Say?
“ The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself.” That is, the product should come from a deep understanding of the market of customers.
YOUR UNDERSTANDING
Complex Trade Conducted Between Two Organizations
“Business Marketing is the practice of individuals, or organizations, including commercial businesses, governments and institutions, facilitating the sale of their products or services to other companies or organizations that in turn resell them, use them as components in products or services they offer, or use them to support their operations”``
Top B2B Brands
EXERCISE : DIFFERENCE BETWEEN B2B AND B2C
VIDEO B2B: SELECTING, DEVELOPING AND MANAGING CUSTOMER RELATIONS
B2B and B2C
B2B Marketing
• Vision Setting( who does it) • Fewer Purchasers • Multiple Decision Making Interfaces • Individuals are tech-commercially competent • Evaluator may or may not represent personal need • Credit and blame can be shared • Lesser sales Point of Contacts • Long term engagement and gestation
B2C Marketing
• Marketing Push • Individual Customers and stakeholders • Reflects individual requirements and needs • Peer consulting and influence • Greater perceived risk • Long arm distribution • Customers to point of sales
In Brief
Perspective Business Markets Consumer Markets Large no. of buyers Individual customer Limited stakeholders Support Technically and commercially aware individuals Knowledge levels are high Influence/Risk More widespread Look to their peers Participation in market place Fewer purchasers Buying decision more than one person is involved in buying decisions
Knowledge levels are low Greater individual risk
Critical Considerations: B2B and B2C
Areas of Difference Market Characteristics B2B Market Geographically Concentrated Relatively Fewer Buyer Lesser but larger deals Consumer Market Geographically Disbursed Mass Market Multiple but smaller purchases
Product Characteristic
Technical Complex
Customized
Standardized
Service Characteristic
Service , timely Availability extremely Important
Somewhat Important
Buying Behavior
Involvement of Various functional area from both the ends
Purchase Decisions are performance based and rational
Involvement of family members
Purchase decisions are mostly based on Physiological /social/psychological needs
Technical Expertise
Stable Interpersonal relationship
Relatively less technical expertise is required
Non- Personal relationship
Goals of B2B Purchasing
Uninterrupted Availability Manage Inventory Improve Quality
Developing and Managing Supplier relationships
Achieve Lowest TCO
Reduce Administrative cost
Advance Firms Competitive Position
Agents of Change for B2B Management
Data Explosion
New channel of information, communication and reach Changing Landscape with digital integration
Web
Information management sophistication has increased Performance information is more readily available leading to new ways of B2B management decisions
Brands displaying high quality positioning themselves as affordable in bulk deals B2B companies need to worry about apples being compared to oranges(Huawei and Ericsson)
Enhanced Brands Emphasis
Affiliate marketing is bringing new business models to consider
Agents of Change for B2B Management
Breakeven and profits can only happen with repeat purchases Loyalty has overtaken churn(brand shifters)
Local companies coming up as dark horses Trade blocs being formed in group of countries
Glocal Competition
Both sides have equal access to sales and marketing data
Enhanced customer retention and loyalty
Balance shifted from manufacturer to customer
Shift in Balance of Power
CLV(Customer Lifetime Value) is a strong concept
Now the war is of worldwide competition
THINK ABOUT A PRODUCT OR SERVICE LAUNCHED BUT NOT PERFORMING ADEQUATELY.
QUAD A: ENOUGH MARKET KNOWLEDGE BUT POOR AWARENESS
QUAD B : GOOD MARKET KNOWLEDGE, GOOD AWARENESS BUT STILL UNDERPERFORMING QUAD C: BAD MARKET KNOWLEDGE, BAD PRODUCT
QUAD D: MARKET NEED EXISTED, PRODUCT DESIRED TO MEET IT BUT LACKS SOMETHING CRITICAL TO MEET THE REQUIREMENT AS ‘PERCEIVED BY THE MARKET’
M ar ke t K n o wl e dg e
Quad A
Quad B
B2B Product Domain
Quad C
Quad D
Product Profile / Launch
M ar ke t K n o wl e dg e
Quad A
Quad B
B2B Product Domain
Quad C
Quad D
Product Profile / Launch
Problem Analysis Quadrants
Home work
(Sony Tablets)
Resources and Timelines, Policy Changes, External Environment
M ar ke t K n o wl e dg e
Product Pricing Channel
Google in China
Chinese Telecom Products in India Product Management
Selection, Strategy, Execution Onida Mobile Phones
Market Research and Training Mhealth, BP Lubes, Lens Kart, Titan Eye
3G Network and Services
Product Profile
Marketing Characteristics
Mass Advertising.
Industry Normally focused on technical media. Not normally TV. Often very suitable due to small numbers Often very suitable for company specialists
Direct Mail Face to face selling by specialists Hospitality Editorial. Publicity. Discounting. Specialist exhibitions and or trade shows. Point of sale displays and communications.
Consumer Often suitable and used including TV, Radio and mass circulation print advertising. Sometimes not viable due to high numbers & low value. Rarely suitable for individual items to end users.
Very suitable because of often high Not often used business value per decision maker Very suitable in targeted print Sometimes suitable. media. Suitable Suitable Often to reward volume customers. Discount sales are often used for sales promotion. Often used for high value Mainly suitable for items selling items(Build Con) to retail buyers(Times Utsav) Not often used Extensive use.
Industry
Consumer
Direct sales force
Used for extensive account management
Sometimes used.
Used where needed to sell to resellers more than to actual consumers.
Often used in chain before retailers especially in export markets.
Wholesalers
Distributors Catalogues Commissioned Agents E-Commerce via Internet
Seldom, unless relationship Regular is there with B2B company Form part of direct sales Often used. Form part of distribution chains. Sometimes used.
Becoming more prevalent to Becoming more prevalent at cut out intermediaries retailers, less so for manufacturers because of their narrow ranges. No direct evidence Used often by specific organizations
23
Multi-level marketing
