1 b2b intro
TRANSCRIPT
8/7/2019 1 B2B Intro
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Difference between Business and
Consumer Marketing
Non-personal relationshipStable interpersonal relationship between
buyers and sellers
Less technical expertiseTechnical expertise
Decisions are mostly made on
physiological/social/psychological needsPurchase decisions are made on
rational/performance basis
Involvement of family membersInvolvement of various functional areas
in both buyer and supplier firmsBuyer behaviour
Service, timely delivery and
availability somewhat important
Service, timely delivery and availability
very importantService characteristics
Customised
StandardisedTechnical complexityProduct characteristics
Mass marketsRelatively few buyers
Geographically disbursedGeographically concentratedMarket characteristics
Consumer MarketsBusiness Markets Areas
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Difference between Business and
Consumer Marketing
List price or Maximum Retail
Price (MRP)
Competitive bidding and negotiated pricePrice characteristics
Emphasis on advertisingEmphasis on personal sellingPromotional
characteristics
Multiple layers of intermediariesFewer intermediaries and middlemen
IndirectMore directChannel characteristics
Consumer MarketsBusiness Markets Areas
List price for standard products
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Business Markets: Nature of Demand
Demand is derived from demand forconsumer goods
Joint demand (pump-motor)
Demand elasticity
Inelastic for most industrial goods forindustry as a whole
Elastic for individual suppliers of a particularindustry
Cross elasticities exist for same application
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Types of Industrial Customers
Commercial enterprises
Manufacturing
Non-manufacturing
Institutional customers
Public/private
Hospitals, educational institutions etc
Government customers
PSUs
Govt Departments Electricity, Irrigation etc
Direct end-users (spares, replacements)
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Classification of Industrial Goods &
Services
Raw materials, components and sub-assemblies
Capital items
Plant & building
Heavy equipment (machinery)
Light equipment (hand tools)
Consumables
Operating consumables
Maintenance consumables
Services: Legal, advertising, courier etc
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B2B Marketing
Value: Monetary worth provided tocustomer firm
Marketing process in B2B situation
Business across borders
Business networks and workingrelationship
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Value in Business Markets Price in monetary terms (per unit, per hour,
per liter)
Net benefits to customer in terms of economic,technical, service and social benefits
One competitive alternative to businesscustomer to make the product itself
Business markets realisation that saving oncost of purchased goods & services improvetheir profitability
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B2B Marketing Process
PDM: Product Development Management
Understanding customer requirements andpreferences
Anticipating their changes in requirements
Responding with solutions
Preferences in what way customers arewilling to pay
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B2B Marketing Process
SCM: Acquisition of inputs
Efficiency and effectiveness with which theinputs are converted into customer solutions
CRM:
Identifying customers Creating customer knowledge
Building customer relationships
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B2B Marketing Process Product:
Flexible solutions with alternatives / options Specialise in few segments
Pricing: Evaluate the worth the price offers to customers, better than
other alternatives in the market Immediate and in the long-run
Promotion: More focused communication Reinforce customer value proposition
Distribution: Customer-driven channels to support CRM process
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B2B Business Across Border Influencing factors:
Culture & language
Political & economic Legal
Business impact: Negotiation Understanding customer decision making process Contract agreement Dispute resolution Currency exchange & payment risk
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B2B Business Networks
Team with complementary skills Technical or functional expertise
Problem-solving & decision making skills
Communication and interpersonal skills
Collaborative relationship agreements
Mutual advantage Time horizon
Dispute resolution mechanism
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B2B Business Networks
Business network Actors:
Buyers
Users
Consultants
Project teams
Distributors/Agents
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Sectors - Industry Automobile
House hold goods: Refrigerator, T V etc
Consumer goods
Electrical
Electronics Engineering (Machines)
Medical equipment
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Sectors - Services Banking and Insurance
IT
Hospitality and Tourism
Health
Transportation
Railways
Education
Entertainment
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GDP Components 2009-10
Rs in crores
Source:R
BI
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Production: Select Industry
2009-10
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Production: Select Industry
2009-10