B2B_Marketing

B2BMarketing•DifferencestoB2CmarketingProductsandservicesarepurchasedtofulfilNEEDSinB2Bmarketing.*Topurchasecomponentsandservicesinordertomakeproductsthatsatisfyconsumersdesires.*Topurchaseareadymadeproductforonwardsalestobusinessesforsaletoconsumers,orotherdistributorsB2BMarketing•PurchaseofservicestosupportthebusinessesNEEDSinoperatingthebusinessanditslegalobligations–Banks–Accountants–Expertconsultancyservices–Recruitmentagencies–VehicleLeasingcompanies–Transportproviders–air;rail;road;sea–Externaldatamanagementandinformationproviders–Interimmanagementandtemporarystaffagencies(tomentionjustafew)B2BMarketing•B2C–consumerspurchasetosatisfydesires.–Thedifferenceisthedegreetowhichemotionplaysapartinthedecisionprocess•Insmallgroupsdiscussthedecisionprocessesinthefollowingsituations.–BCU’sdecisiontosubscribeto“Emerald”businessjournalcatalogue.–Amemberofyourgroupsrecentpurchaseofclothing.–BirminghamCityCouncillorsdecisiontobuildthenewCityLibrary.B2BMarketing•Consumerbehaviourisseentobemuchmoreaffectedbyouremotionalattachmenttoproductsandinparticularbrands.•B2Bpurchasebehaviourisseentobemuchmoredrivenbycognitive–activeintellectualevaluationofproductattributes•But,thisisanoversimplificationofB2Bdecisionprocesses,whichwhilstheavilybiasedtocognitionisinfluencedbyemotion.B2BMarketing•TheBuyerDecisionProcessinlargeB2B’sTheDecisionMakingUnit(DMU)GateKeepersUsersInfluencersPurchasersDecisionMakersB2BMarketing•B2Bpurchasesareeither–•smallinnumberitemspurchased,butofhighvalue.•Vastquantitiespurchasedeachitembeingoflittlevalue.B2BMarketing•ThreetypesofbuyingsituationinB2B•StraightRebuy•ModifiedRebuy•NewProjectB2BMarketing•NatureoftheProductinB2BmarketingALLproducts–B2B&B2Carepurchasedtosolveproblems.Whatproblemsdotheseproductssolve,forwhomandwhyB2BMarketingB2BProducts–Nonemotionalperformanceattributesoftheproductaremostimportantresolution;scanspeed;cost;patientcomfort;maintenancecosts;patientsizecapacityB2CProducts–emotionalsymbolicelementsareofequalorgreaterimportance(orth&Demarche)aestheticappearance;socialstatus;selfesteem;socialbelongingB2BMarketing•SegmentationB2Bmarkets–IsnotascomplexasB2Csegmentation–(1)Need/Benefit–(2)Pareto/Volume–(3)Supplier/Buyersizerequirements–(4)Geographic•Local/Regional•National•Regionalinternational•Byculturalties•GlobalB2BMarketing•DefinethepossibleB2BProduct/MarketSegmentsforBirminghamCityLibrarySegmentBenefitsSoughtBenefitsOfferedB2BMarketingForthemarketsegmentsyouhaveidentifiedtrytoestablishwhatrolesmayformpartofeachsegmentsDMUB2BMarketing•PricinginB2BMarkets–(1)BusinesstoWholesale/retailer•Needforchannelmemberstoeachmakeaprofit•Increaseindirectsalesviainternetincreasesmargins•AsymmetricpowerbalancebetweenretailerandsupplierleadingtoBOGOF’s&BTGOF’sB2BMarketing•PricinginB2BMarkets–(2)Component/Serviceprovidertomanufacturerassembler•Organisations(forthemostpart)formpartnershipsratherthanjustengageintransactions.(Thompson1968)•DerivedDemand•Inelasticityofdemandforscarceresources•Elasticityofdemandforprolificresources/suppliersB2BMarketing–(3)RawmaterialssuppliertoRefiner•Poorestaddedvalue(despitethewealthoftheSaudis)B2BMarketing•MarketingChannelsComponentManufacturersownsalesteamAssemblerManufacturerSalesAgentManufacturer/AssemblerManufacturerWholesaler-FactorSMEContractorManufacturerNationalConsumerRetailerSMEContractorsB2BMarketingDefiningtheChannelforBirminghamCityLibrarySegmentChannelDescription&JustificationB2BMarketingDefinethePricingStrategyforBirminghamCityLibraryServicePricingStrategywithJustificationB2BMarketing•B2BBranding–Differenttoconsumer•NonrationalemotionalattachmentcriticalinB2Cbranding•B2Bfocuseson•Product/servicePERFORMANCE•Supplier-CustomerRELATIONSHIPQUALITY•Flexibility•Trust•CommitmentB2BMarketing•DefineTheBrandforBirminghamCityLibraryElementofBrandHowdoyoutranslateintoBrandKnowledgeforBCLServiceperformanceCustomerTrustBCLserviceFlexibilityDemonstrationofcommitmentBrandCommunicationsSEENEXTSECTIONFORDETAILB2BMarketing•Althoughpersonalsellingisthemajorcommunicationstoolisshouldnotbetheonlyoneused.AdvertisingPersonalselling•PAIDAB2BMarketingCommunicationToolAIDAStrategyforBCLPrintedMedia5411PR4511DirectMail2211Exhibitions3111Websites3532TeleSales1141PersonalSelling1145