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Module - 1 BSM

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Module - 1 BSM

Uploaded by

santhosh
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Module 1

Introduction to Business Marketing


Contents……………..
• Nature and scope of Business Marketing (B2B),
• Differences between B2B and B2C marketing,
• Types of customers in Business Marketing,
• Classification of products in business markets,
• Organizational Buying Behavior & process,
• Different buying situations;
• Factors influencing organizational buying behavior,
• Industrial buying behavior models- The Webster & Wind model of
Organizational buying behavior
Business-to-business marketing or Industrial
marketing
• Business-to-business marketing or Industrial marketing is the
marketing of goods and services by one business to another.
• Industrial goods are those who uses to produce an end product from
one or more raw materials.
Nature and scope of Industrial marketing
• The nature of industrial marketing is relatively easy to understand, but
the process is complex.
• Selling to customers directly is easy.
• if the business engages in B2B marketing, it needs to know a large
group of diverse people across various locations.
• Industrial marketing has a broader scope as it deals with customers
indirectly.
• it needs to think about both the middlemen and the customers when
marketing its products.
• This allows the business to specialize in a specific field.
Differences between Business and consumer marketing
Criteria Industrial Marketing Consumer Marketing
Type of Products Products are complex and highly specialized Products are simple and easy-to-use

Target Audience Professional and trained business owners End-users who purchase the product

To create awareness of the availability of a product


Motives of Sellers To influence institutional buyers or service by a particular brand and generate
demand by highlighting the salient features

Developing and nurturing partnerships that focus Dynamic advertising that induces the impulsive
Strategic Focus on building long-term relations with business buying behaviour of the customers and makes them
partners by gaining their trust. loyal to the brand.

Digital Content marketing (posting blogs, white


Various online and offline advertising and marketing
papers, case studies on informational websites),
Marketing Strategies tools including print, television, and several online or
personalized presentations to clients, distributing
social media platforms.
product samples, etc.

Encompasses all the operational competencies and Encompasses only highlighting the benefits/utilities
Marketing Elements processes employed by the company in delivering that customers will derive by using the
value to their customers. product/service.

Narrow and constricted as industrial marketers


Wide and extensive as consumer marketers market
Market Reach deal with the limited magnitude of businesses
the products/services to potential mass customers.
requiring products/services of their clients.
Types of customers in Business Marketing

• Commercial Enterprises
 Industrial distributors or dealers
 Original equipment manufacturers (OEMs)
 Users
• Governmental Agencies
• Institutions
• Co-operative Societies
Classification of the Product
Organizational Buying Process
• DECISION-MAKING UNITS:
• The group of individuals responsible for making a buying decision in a B2B
context are labelled the decision making unit (DMU).
• Within organizations, major purchases typically require input from various parts
of the organization, including finance, accounting, purchasing, information
technology management, and senior management.
• Highly technical purchases, such as information technology systems or
production equipment, require the expertise of technical specialists.
• In some cases, the buying center acts as an informal ad hoc group.
• In other cases, the buying center is a formally sanctioned group with specific
mandates, criteria, and procedures.
BUYING CENTERS

• A buying center is a group of people within an organization who make


business purchase decisions.
• A buying center is a group of employees, family members, or members of
any type of organization responsible for finalizing major purchase decisions.
• Initiators who suggest purchasing a product or service
• Influencers who try to affect the outcome decision with their opinions
• Deciders who have the final decision
• Buyers who are responsible for the contract
• End users of the item being purchased
• Gatekeepers who control the flow of information
BUYING SITUATIONS
• B2B buying situations are relationship-oriented, pragmatic, and
negotiable compared to the average B2C exchange situation.
• When considering different buying situations as a marketing
professional, one of the first questions to ask is whether the goods
are being provided to customers (mass marketing B2C) or to other
businesses (focused B2B).
• Selling to businesses usually requires a significantly different
marketing approach, including differences in what the buying
situation will be like.
• B2B Opportunities
STAGES OF BUSINESS BUYING
The Webster & Wind model of Organizational Buying Behaviour

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