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  Business to Business Marketing= B2B

 Covers transactions between business

organizations
 Both sides are companies or organizatons
 Industrial Marketing

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Copyright © 2011 Pearson Education, Inc., publishing as Prentice Hall 1-3
  A machinery company sells machine to a
chemical company
 A chemical company sells chemical raw
materials to a food company
 A petrolium company sells raw petrolium
materails to a plastic company
 A microchip company sells microchips to a
computer manufacturer company
 A packaging company sells packages to a
laundry detergent producer
 Bosch-Industrial Solutions
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Copyright © 2011 Pearson Education, Inc., publishing as Prentice Hall 1-5
  A logistics company sells logistics services
to a construction company
 An advertising agency creates advertising
campaign for a food company
 A consultancy company provides
management consultancy for an energy
company
 A hotel chain makes an agreement with a
textile company for their sales-persons
business trips
 https://www.youtube.com/watch?v=eu05zP7WA3A&list=PLxfC-I5NL73WZdjIz78Y4mx4P
E7pwjoqQ

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  marketing of products to businesses or other
organizations for use in production of goods,
for use in general business operations (such
as office supplies), or for resale to other
consumers, such as a wholesaler selling to a
retailer.

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 Product

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 The total offering is created by a
partnership between the buying
organization and the marketing
organization.
 The process creates an augmented
product that is specific to the buying
unit’s needs and maximizes the value
creation capabilities of the marketer.
Core Product
+ Financing Terms
+ Delivery Options
= “Total Offering”
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 The mutually agreed-upon amount that
satisfies both sides in an exchange.
 Often varies from fixed price, with more
special discounts and allowances (in
comparison to consumer markets.)
 May involve things other than a one-time
price payment (such as commissions.)
Price is the measure
of value exchanged
and is determined
by the market—not
by costs.
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 Place is about getting the product to the
customer in order to maximize economic utility.

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 Business-to-business marketing requires a
different emphasis on different parts of the
promotional mix
Consumer V.S. Business to Business

 Emphasis is frequently  Emphasis is frequently

on advertising. on personal selling.
 Communication with  Communication with
customers is often a customers should be a
monologue. dialogue.
 Relationship is often  Relationship is often
brief. long-lasting.

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 Business
Consumer to
Business

 Geographically
 Geographically
Concentrated
Dispersed
 Relatively Few
 Mass Market;
Buyers
Many Buyers
 Relationships
 Relationships
are usually
are weak
strong

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 Business
Consumer to
Business

 Can be technically
Standardized complex
 Customized to user
Service, delivery and
preference
availability only
 Service, delivery and
somewhat important
Purchased for availability very
important
personal use
 Purchased for other
than personal use

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 Business
Consumer to
Business

 Professionally trained
 Individual purchasing
purchasing personnel
Family involvement,
 Functional involvement at
influence
Social or psychological many levels
 Task motives
motives predominate
predominate

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 Business
Consumer to
Business

 Less technical Technical expertise is an

expertise asset
 Nonpersonal Interpersonal
relationships relationships between
 Little personal buyers and sellers
information exchanged Significant personal info
 Changing, short-term exchanged
relationships Stable, long-term
encourage switching relationships encourage
loyalty
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 Business
Consumer to
Business

 Indirect, multiple
 Shorter, more direct
relationships
Organization
 Little or no customer
involvement as part of
supply chain
supply chain
involvement

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 Business
Consumer to
Business

Emphasis on personal
Emphasis on advertising,
selling, dialogue
monologue
Most communications
Companies compete for
invisible to the consumer
visibility and awareness of
Consumer is seldom
consumer market
aware of B2B brands and
companies

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 Business
Consumer to
Business

 Usually list or Complex purchasing

predetermined prices process or competitive
bidding, depending on
purchase type

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 Business
Consumer to
Business

 Derived
 Direct
 Inelastic (short run)
 Elastic
 Volatile (leveraged)
 Less volatile
 Discontinuous

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  Nothing happens unless consumer buys something
Acceleration Principle: “Bullwhip Effect”
1. Suppliers forecast 2. If consumer demand
production on existing drops, the order rate
order rates. also drops.

3. Supply chain members are then likely to overcompensate the

difference between the old and new forecasts, because:

A. Inventory levels can decline to fit new order rate

B. Customers change orders frequently
C. Minimum order quantities may exist
D. Trade promotions may influence buying patterns
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  The puzzle of the B2B Customer needs
“Total
Offering”

•Product
•Service
•Image
•Availability
•Quantity
•Evaluated
Price
•Timely
delivery
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  Hyper-competition
 Formation of partner networks
 Adoption of technology and the internet
 Supply Chain Management
 Time Compression

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