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Business-to-Business (B2B) Marketing

This document discusses business-to-business (B2B) marketing. It defines B2B marketing as marketing of goods and services to companies, government bodies, and institutions for use in producing their products or facilitating their operations. The key differences between B2B and business-to-consumer marketing are described, including larger sales and purchase volumes but fewer buyers in B2B. Different categories of B2B customers and products are outlined, including entering goods that become part of finished products, foundation goods like capital items, and facilitating products that support operations.

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45 views

Business-to-Business (B2B) Marketing

This document discusses business-to-business (B2B) marketing. It defines B2B marketing as marketing of goods and services to companies, government bodies, and institutions for use in producing their products or facilitating their operations. The key differences between B2B and business-to-consumer marketing are described, including larger sales and purchase volumes but fewer buyers in B2B. Different categories of B2B customers and products are outlined, including entering goods that become part of finished products, foundation goods like capital items, and facilitating products that support operations.

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rohitdandavate
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© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Business-to-Business (B2B)

Marketing
Group Members

 DIANA MICHAEL
 YOGESH CHUGH
 SWARUPA BIRWADKAR
 ROHIT DANDAVATE
 AKSHAY DIVEKAR
What Is Marketing?
 the process of planning and executing
 the conception (product), pricing, promotion,
and distribution
 of ideas, goods, and services
 to create relationships
 that satisfy individual and organizational
objectives.”
BUSINESS MARKETING
IS
 MARKETING OF GOODS AND SERVICES TO:
– Companies
– Government Bodies
– Institutions (i.e. hospitals)
– Non-Profit Organizations (i.e. American Red Cross)
FOR
 USE IN PRODUCING THEIR PRODUCTS
AND/OR TO FACILITATE THEIR OPERATIONS
What Distinguishes B2B from B2C?
 B2B: goods or services are sold for
any use other than personal
consumption
 Note: It is not the nature of the
product; it is the reason for the
transaction.
Is it a B2C or a B2B Transaction?
You buy a gear to fix your mountain
bike.
Ford buys the same gear to fix a
machine.
Xerox buys soft drinks for its cafeterias.
You start a landscaping business and
purchase a lawnmower.
The U.S. government buys…anything.
B2B versus B2C Marketing
Characteristic B2B Market B2C Market
Sales volume Greater Smaller

Purchase volume Greater Smaller

Number of buyers Fewer Many

Size of individual buyers Larger Smaller

Location of buyers Concentrated Diffuse

Buyer-seller relationship Closer More Impersonal

Nature of channel More direct Less direct

Buying influences Multiple Single/Multiple

Type of negotiations More complex Simpler

Use of reciprocity Yes No

Use of leasing Greater Less

Key promotion method Personal Selling Advertising


BUSINESS TO BUSINESS:
IT IS ALL ABOUT DEMAND

 DERIVED DEMAND
– The demand for a company’s products comes
from (derived) the demand for their customer’s
products.
– Most demand comes from consumers.

 JOINT DEMAND
– Two products are used together and demanded
together – Both products are consumed at the
same time
Other Characteristics of Business Demand

 Inelastic Demand
 Fluctuating Demand
Major Uses of B2B Products
For additional production
(e.g., components are combined
into subassemblies and become
part of the finished product)
For use in operations, but not
part of the finished product
For resale
Classifying Business Goods & Services
3 Main Categories of Products
 Entering Goods
Become part of the finished product
Cost assigned to the manufacturing process
 Foundation Goods
Capital Items
Typically depreciated over time
 Facilitating Products
Support organizational operations
Handled as overhead expenses
Classifying Business Goods & Services
Entering Goods
 Raw Materials
 Farm products & natural products
 Only processed as necessary for handling & transport
 Require extensive processing
 Manufactured Materials & Parts
 Any product that has undergone extensive processing prior
to purchase
 Component Materials require additional processing
 Component Parts generally do not require additional
processing
Classifying Business Goods & Services
Foundation Goods
Installations
Major long-term investment items
Buildings, land, fixed equipment, etc.
Accessory Equipment
Less expensive & short-lived
Not considered part of fixed plant
Portable tools, PC’s, etc.
Classifying Business Goods & Services
Facilitating Products
Supplies
Any supplies necessary to maintain the
organization’s operations
Services
Maintenance & Repair support
Advisory support
Logistical support
Categories of B2B Customers
 Commercial enterprises
– Indirect channel members and
facilitators
– OEMs (original equipment
manufacturers)
– Users = customers
 Governmental organizations
 Institutions
B2b marketing in india
The business market is defined to include
organization that buy good and services,for
use in the production of other product and
serve that are sold,rented and supplied to
others
The full B2B market includes government
purchase quasi-government operation, commercial
enterpriseNgo's hospitals,charities,resellers and
other bodies and institutes engaged in purchase of
physical goods and service
YO U …
THA N K

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