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    Industrial Marketing TO B2B Marketing ?

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    akashkr619
    The document discusses the transition from industrial marketing to business-to-business (B2B) marketing. It notes that B2B marketing deals with marketing to other businesses, governments, and institutions rather than individual consumers. The key differences between B2B and business-to-consumer marketing are described, such as fluctuating demand, derived demand from ultimate consumer demand, and relationship-based selling. Characteristics of B2B customers and their purchase decisions are outlined. The importance of global opportunities and managing supply chain relationships is also highlighted.

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    Industrial Marketing TO B2B Marketing ?

    Uploaded by

    akashkr619
    20 views23 pages
    The document discusses the transition from industrial marketing to business-to-business (B2B) marketing. It notes that B2B marketing deals with marketing to other businesses, governments, and institutions rather than individual consumers. The key differences between B2B and business-to-consumer marketing are described, such as fluctuating demand, derived demand from ultimate consumer demand, and relationship-based selling. Characteristics of B2B customers and their purchase decisions are outlined. The importance of global opportunities and managing supply chain relationships is also highlighted.

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    The document discusses the transition from industrial marketing to business-to-business (B2B) marketing. It notes that B2B marketing deals with marketing to other businesses, governments, and institutions rather than individual consumers. The key differences between B2B and business-to-consumer marketing are described, such as fluctuating demand, derived demand from ultimate consumer demand, and relationship-based selling. Characteristics of B2B customers and their purchase decisions are outlined. The importance of global opportunities and managing supply chain relationships is also highlighted.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    20 views23 pages

    Industrial Marketing TO B2B Marketing ?

    Uploaded by

    akashkr619
    The document discusses the transition from industrial marketing to business-to-business (B2B) marketing. It notes that B2B marketing deals with marketing to other businesses, governments, and institutions rather than individual consumers. The key differences between B2B and business-to-consumer marketing are described, such as fluctuating demand, derived demand from ultimate consumer demand, and relationship-based selling. Characteristics of B2B customers and their purchase decisions are outlined. The importance of global opportunities and managing supply chain relationships is also highlighted.

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    Industrial Marketing TO B2B Marketing ?

    1
    2
    How can WE contribute to a great
    course ?

    3
    How can YOU contribute to a
    great course ?
    • Summer Internship
    • Post questions
    • Respond to peers
    • Engage in discussion
    • Focus on **** slides

    Engage with guest speakers

    4
    B2B Marketing
    Evaluation

    CP- 10
    Quiz- 20
    Project- 30
    End term- 40

    5
    A Business
    Marketing
    Perspective

    6
    A Business
    Marketing
    Perspective

    7
    80% of all B school graduates join firms that
    directly compete in the business market

    Because of interest in high-tech markets and


    the size of industrial markets, increased
    attention is being paid to business marketing
    management

    8
    Business Markets
    Bought by:

     Businesses
     Government bodies
     Institutions

    For:
     Incorporation (parts)
     Consumption (tea/coffee)
     Use (Printer)
     Resale (Channel)
    9
    Business to Business (B2B) Marketing is
    Huge

    1. Business marketers serve the largest markets


    of all.

    2. Rupee volume of the business market greatly


    exceeds the consumer market.

    3. India’s 100 largest Manufacturing companies


    purchase more than Re. 900 Lakh Crore
    worth of goods and services annually
    10
    B2C and B2B
    The Consumer Market (B2C) and the Business Market (B2B) at
    Wipro
    Infotech
    B2C
    B2B

    Customers: Individuals & Businesses Institutions Government


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

    Selected PCs PCs


    Products: Printers Enterprise Storage
    Laptops Servers
    Simple Service Complex Service Offerings
    Agreements

    11
    Marketing’s Cross-Functional Relationships
    Professional business marketers act as an
    integrator between various functional areas
    within the company
    Functional areas include:
    ◦ Manufacturing
    ◦ Research & Development (R&D)
    ◦ Customer Service
    ◦ Accounting
    ◦ Logistics
    ◦ Procurement
    ◦ Examples from summer projects 12
    Business and Consumer Marketing Differs In ***
    1. Nature of their markets
    2. Market demand
    3. Buyer behavior
    4. Buyer-seller relationship
    5. Environmental influences (competition,
    political, legal) and
    6. Market strategy
     Due to these differences, business marketers need
    to understand how demand for industrial products
    and services differs from consumer demand.
    13
    Business Market
    Demand Characteristics*

    Derived demand

    (more) Fluctuating demand


    Stimulating demand
    Price sensitivity / demand elasticity

    14
    Derived Demand
    The demand for business products is called
    derived demand because the demand for
    industrial 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.

    15
    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 loan rates can quickly stifle 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 action explains why the demand for many industrial


    products tends to fluctuate more than the demand for
    consumer products.

    16
    Stimulating Demand
    Sometimes, business marketers need to stimulate
    demand for consumer goods which either
    incorporate their products or are used to make
    consumer products.

    17
    Inelastic Demand
    • Inelastic demand is demand without
    regard to price. An increase or decrease
    in the product price will not significantly
    affect the demand for the product.

    • Example: Price for petrol

    18
    Global Market Perspective
    Marketers must have a global perspective:
    Enormous growth in developing countries
    such as Brazil, China, Russia, and South
    Africa offer huge opportunities for both large
    and small businesses

    19
    Building one-to-one relationships with
    customers is the heart of business
    marketing

    20
    Characteristics of Business Market Customers**

    Characteristic Example

    •Business
    market customers are comprised •Among HCL Technology’s customers are
    of commercial enterprises, institutions, and Reliance Industries Ltd, State Bank of India and
    governments. many central and state government’s entities.

    •A single purchase by a business customer is •An individual may buy one unit of a software
    far larger than that of an individual consumer. package upgrade from Microsoft while
    Citigroup purchases 10,000.

    •The demand for industrial products is derived •New home purchases stimulate the demand for
    from the ultimate demand for consumer products. paint, appliances, furniture, lumber, and a
    wealth of other products.

    •Relationships between business marketers •IBM’s relationship with some key customers
    tend to be close and enduring. spans decades.

    •Buying •A cross-functional team at Hindustan Unilever


    decisions by business customers often
    involve multiple buying influences rather than a (HUL) evaluates alternative laptop PCs and
    single decision maker. selects Hewlett-Packard.

    •While •Job
    titles include marketing manager, product
    serving different types of customers,
    business marketers and consumer-goods manager, sales manager, account manager.
    marketers share the same job titles.

    21
    Managing Relationships in the Supply
    Chain
    As important as it is to gain customers, it is
    just as important for manufacturers to
    develop strong relationships with suppliers.
    Companies such as IBM and Toyota develop
    strategies to create suppliers who provide
    new ideas and who are loyal.

    22
    Review

    23

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