Definition Business marketing

=The marketing of goods and services to commercial enterprises, governments and other nonprofit institutions -For use in goods and services that they, I turn produce or-For resale to other industrial customers

Definition 2

• 2 essential aspects

-type customer

-intended usage of theory and application theory based on a short case story

Type of customers

• Government

• Institutions

• Companies -users

-OEM’s(origin.equipment.nanuf.)

-distributors

Different buying behaviors

Intended usage

-Manufacturing

-Trade

Differences BM_CM

• Market structure

-number of clients and suppliers

-concentration more geographical concntr)

-international• Nature of demand

-derived demand( determined by the consumer demand)

-inelastic (BM)

-acceleration-effect (outsourcing)

Differences BM-CM 2

• Baying behavior -professionals

-motives: rational vs. emotional

-purchasingproces, buying teams

-relations

-size and frequency of purchases

• Marketing instruments

- 2 additional p’s - Different composition of mark.mix

Type of product

• Capital goods : equipment + systems

• Materials -raw materials

-processes materials

-components

• Usage goods MRO’s (maintenance rapid office suppliers)

• Services

Marketing on business markets 1

• Marketing philosophies: 5x

• When market oriented: - customers and his needs as starting point

-Market scanning, marketinfo

-internal circulation of info

-competitors

-segmentation/target group

-adapt to changes in market

Marketing on business markets 2

• Market orientation, based on 2 concepts:

-external focus on relevant market parties (who is customer? marketing system/competition/suppliers etc.)

-Internal focus on international coordination

(coordination with ‘non marketing” departments/informing, involve others )

Introduction market orientation

• Change of culture

• Mentality

• Resistance

• Teambuilding

• Support top management

• Communication

• Project groups

Transactions and relations

• B/M/ = relationmarketing

(personal contact,networking,cooperation)

DIFFERENSES Transaction and Relationmarketing \

-”always a share” vs. “always lost”

-Low vs. high cost of change

-Low vs high risk in case of wrong buy

-Emphasis on product, person vs. technology, supplier

-Purchase less vs. very important

Buying behavior

• Basis business marketing

• Subjects: - Buying process

- Buying situation

- DMU and PSU

- Purchasing portfolio and purchasing strategies

- Supplier management

Buying process

• Product and market technical phase-problem recognition

-specs determination

-search for potential suppliers

-quotations

• Commercial phase -Negotiations, choice, contract

• Administrative phase -order monitoring, evaluation, feedback

Buying situations

• New task

• Modified rebuy

• Straight rebuy

Buy grid model

• Combination buying process and buying situations

• Determination marketing strategy -Questions buy grid (combination important? Which departments c.q.

persons involved? Which roles c.q. functions? Sources of information?)

DMU – PSU

• DMU: all persons involved in purchase. Role: - initiator/user/influencer/buyer/decider/gatekeeper/

• PSU: - Team of specialists at seller’ side

-adjust to level in DMU –Tend to closer cooperation

-Coordination

Buying motives

• Task oriented

• Non-task objectives

Buying strategies

• Strategic products: partnership

• Leverage products: competitive bidding

• Bottle neck products: security supply

• Routine products: system contracting

Supplier Management

• Changing character purchase: more strategic

-less suppliers

-Character of relation

-more professional

• Consequences for marketing policy suppliers

Market Research

• No fundamental BM-CM

• 3 main differences

-derived demand

-concentration of demand

-DMU and buying process

Characteristics research BM

• Secondary data (desk)

-more usage of secondary data

-sources : internal/external

-Standard Industrial Classification (SIC)

- (SBI)

Characteristics Research BM

• Collection primary data (field)

-mainly qualitive research to find complex,

buying motives

-personal interviews

- Technical knowledge required

- Size of sample

Market segmentation

• Dividing market into groups of potential customers who are similar in needs, expectations, are response to marketing stimuli

- Characteristics buyers

- Criteria

Requirement segmentation

• Homogeneous

• Reachable

• Size

• Measurable

• Accessable

Segmentation Criteria

• Macro level (- organizational characteristics: SBI-code/size, usage/product application/geographical location.

-Characteristics buying decision: buying situation/phase of buying process)

• Micro level (- DMU characteristics: roles, decision procedures/ buying criteria/purchasing strategy.

-Characteristics DMU – members: function, experience/ loyalty to supplier/ life style, personality/ age, sex, education, etc.

Product levels

• Core products (why is the customer buy?)

-BM: solutions for problems

• Tangible products (components, packaging, design)

• Augmented(Service, delivery time)

Quality

• Product orientation

• User orientation

• Production orientation

Types of product

• Catalogue products

• According specification

• Tailer made (unique product only for 1)

• Services

Service

• Characteristics

-untangible

-production and consumption at the same moment

-heterogeneous

-no stock

-no property (of client)

Service

• Pre sale service

• Transaction related service (customer service)

• After sales service

Service BM-CM

• Tailor-made

• Large technological component

• Production at site of customers

• More emphasis on business than person

Distribution

• Most strategic marketing instrument

• Functions distribution channel

• Main aspects distribution policy

Design Channel structure

• Distribution objectives (depends on marketing and goals/ availability/ lowest costs/ max. control/ max. saleseffort/ optimal back up/positive image/market feedback)

• Limitations and conditions (right intermediates available?/ product characteristics/ customer needs/ budget/strategy competition/ geographical distribution clients/ tradition)

• Channel tasks (commercial/ financial/ logistical)• Channel alternatives (length channel/number of levels/type

intermediate-agent or industr.distributor/number of distr./#of chaneel• Evaluation and choice

Direct&Phisical distribution

• Direct: (limited # of clients/ geographical concentration/large orders/high margin/ specialistic support required/JIT (just in time you need it) delivery

• Physical: (Logistic management=materials management + physical distribution/ trade offs/ customer services/ make or buy (financials&commercials reasons, personal and equipment))