b2b mktg

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Marketing Application & Practices 1

B2B MARKETING ( INDUSTRIAL)

INDUSTRIAL PRODUCT (Defn

)It is the Product or Service which is offered to

Manufacturing, Trading or Service

Organisations or to Professionals or

Professional Institutions for their use infunctioning towards their business objective/s.

INDUSTRIAL MARKETING (Defn)It refers to the process of marketing such

industrial products or services

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B2B MARKETING (INDUSTRIAL)

INDUSTRIAL PRODUCTS Core Product : functional performance

Augmented Product : peripheral product Additional features

Packaging

Sales Promotion

Before / After Sales Service

Company Reputation

Availability / Reliability of delivery commit.

Prices

Payment Terms

Warranty

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B2B MARKETING (INDUSTRIAL)

CLASSIFICATION OF INDUSTRIAL

GOODS

Equipments :

Equip organisations for their stated purpose

Materials & Supplies :

Used in Production for resale

Services :Facilitate the functioning of the organisation

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B2B MARKETING

MARKET SEGMENTATION OFINDUSTRIAL PRODUCTS

1. What is brought ?

Type of Product Range of ProductFull Line / Niche

What need does the Product satisfy

Std Product / variance / NonStd

Capital Goods / Consumables

High Value / Low Value

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B2B MARKETING


2. Who buys it ?

Offices / Manufacturing Industries / ServiceIndustries / Professionals

Type of Industry / Service

Geographical location

CustomerGovt / Public / Private

Size of Customer

Heavy User / Light User

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B2B MARKETING


3. Why is it bought ?

PriceLowest / Value for Money / PremiumProduct

TechnologyLatest / Proven

Aspects determining Customers perception of

qualitye.g. Aesthetics, Durability etc

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B2B MARKETING

INTERNAL CUSTOMERS1. Operators ( ease of use)

2. User dept (Up time)

3. Maintenance dept ( less / no maintenance)4. R & D dept ( Technology - New / Old)

5. Materials / Purchase (Cost / delivery)

6. Finance dept (actual cost)

7. Personal ( how safe is product)

8. C.E.O. ( value for money)

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B2B MARKETING

THE BUYING PROCESS1. Recognition of Needreceipt of requisition

2. Make or Buy Decision

3. Purchase From single supplier

On the basis of past purchase

On the basis of fresh negotiations

From multiple suppliers On the basis of past purchase

On the basis of fresh negotiations

On the basis of Tenders

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B2B MARKETING THE BUYING PROCESS

4. Tenders :

Open (Advertised / Public Openings)

Closed (Advertised / No public opening)

Limited (By invitation only)

5. Selection among Supplier

Integrity

Meeting / Exceeding Specs

Quality

Delivery Time

Pre / After Sales Service

Company Reputation

Commercial Terms

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B2B MARKETING THE BUYING PROCESS

6. Information Sources :

Own company record

Other company reference / Published literature

Catalogues / Exhibitions / Seminars /Presentations

7. Placement of Order

8. Order Follow up

9. Receipt & Inspection of Products &

Documents

10.Payment

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B2B MARKETING

TYPES OF PROMOTION

1. Telephone Directory / Yellow Pages

2. Trade Directories / Publications

3. Journals

4. Press Advertising

5. Direct Marketing

6. TeleMarketing

7. Catalogue / Company Literature

8. Seminars / Exhibitions

9. GiveAway

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B2B MARKETING

STRATEGY

ACTIONS AIMED DIRECTLY AT ALTERING

THE STRENGTH OF THE ORGANISATION

RELATIVE TO THAT OF ITS

COMPETITORS Not included are all actions aimed at

improving operational effectiveness

WITHOUT COMPETITION THERE WOULD

BE NO STRATEGY

Analysis is the critical starting point of

Strategic Thinking

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B2B MARKETING

CORPORATE STRATEGY

MarketAttractiveness

Corporate Strength

A

B

CA

Prevent or Minimise Loss

B Select Opportunities &

Consolidate resources

C

Defend & Increase Mkt Share

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B2B MARKETING - DISTRIBUTION

WHY REQUIRED ?1. Cost of Contacting Customers

2. Channel reachselling support

3. Channels influence

4. Faster response

5. Faster Order Execution

6. Easy Payment

7. Better Pre-sales/After sales service

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B2B MARKETING - DISTRIBUTION

TYPES OF CHANNELS

1. Sales Agent

2. Wholesaler3. Retailer

4. Authorised Service Center

5. C & F / Storage

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B2B MARKETING

KEY PERFORMANCE INDICATORS

OF SALES ACTIVITIES1. Sales / Target (%)

2. Orders / Quotations (%)

3. Margins / Sales (%)4. Cost of Sales / Sales (%)

5. Sales Value / Number of Order (%)

6. Orders / Calls (%)7. Key Account Contact

8. New Customer Orders / Orders

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B2B MARKETING

KEY PERFORMANCE INDICATORS

OF SALES ACTIVITIES (cont.)

1. Calls per day / Face to face time

2. New Prospects called

3. Credit Orders / Total Orders (%)

4. Calls to build Customer Relationship

5. Discounts / Sales (%)

6. Timely Submission of reports

7. Timely submission of Itineraries

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B2B MARKETING - NEGOTIATION Defn: Negotiation is the process of

determining what the other side really desiresand reaching an agreement so that they getwhat they want while you get what you want

PreRequisites :

1. Is the issue negotiable2. Are the negotiators interested in

compromisetrading value for value ?

3. Do they trust each other, at least to someextent

4. Do they have the authority to come to anagreement ?

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B2B MARKETING - NEGOTIATION Styles of Negotiation :

LoseLose (No desire for agreement) WinLose (Competitive)

LoseWin (Lose now for future)

WinWin (Cooperative, problem solving)

Modified WinWin (Both feel they have won) 5 Ps of Negotiation:

Positive attitudeThe will to succeed

Preparation before negotiation

Problem solving approach

Probing during negotiation

Promote yourself, company & product

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B2B MARKETING - NEGOTIATION

Crucial Factors :

Information / preparation required

Evaluating bargaining power

Opening the Negotiation

Rules of Conduct

Handling difficult personality types

Understanding devious negotiationtactics

Follow - up