B2B Marketing Perspectives

1. B2B Marketing Perspectives Anand G Khanna

2.  Business to Business MarketingCourse Outline and Session Plan  October 2010 to January 2011

3. Business to Business MarketingCourse Outline and Session Plan  October 2010 to January 2011

4. Definition B2B Marketing is also often referred to as Industrial Marketing& few as Secondary Marketing Involves marketing of goods and services to other Business enterprises, governmental and other institutional needs for secondary processing Marketing of goods and services to be sold to the end consumer through the use of a Intermediaries –Processing or Reselling

5. DEFINITION • Definition (CMA) “ Markets for Products & Services to be used for meeting the demands of ultimate consumer by Businesses, Government, Institutions & Resellers”

6. MAJOR TRENDS IN MARKETING-2010 • Recession still continues in the Global Market Place • Oversupply in manufactured goods - • Developing shortages in commodities –Steel ,Oil , Cement • Price and margin compression • Rising customer expectations • Financial resources getting tighter – interest rates High etc

7. MAJOR TRENDS IN MARKETING-2010 • Technology acceleration and shorter product life cycles • Rapid innovation and product launch ,imitation –me to • Rapid loss of competitive advantage • Consolidation and convergence in distribution channels

8. MARKETING TRANSITIONS These market trends have necessitated new ways of thinking: From: To: Transactions Relationships Lowest purchase price Highest delivered value Occasional Monolog Ongoing dialog Economies of scale Economies of scope Customer acquisition Customer retention What benefits might co-operations contribute to marketers in light of these challenges?

9. Challenges Facing B2B Marketers • Understanding deep customer needs in new ways • Identifying new opportunities for growth • Improving Value Management • Competing and growing in Domestic and Global Markets • Countering the threat of product and service commoditization – Innovations • Convincing C-Level executives to embrace the Marketing Concept and support Marketing programs

10. Challenges of Business Marketing • Business Market composition –Environment -Stakeholders • Customers- OEM , Corporate, Distribution Channels ,Resellers • Market Processes –T&C of Business • Business Relationships • Business Networks

11. Challenges of Business Marketing • Exchanges • Information • Technological (Superseding innovations) • Financial (Credit) • Social (Trust) • (Maintaining relationships over long period) • (Tiding over short-term difficulties)

12. Challenges of Business Marketing Marketing Strategies have to be well defined • Value Analysis • Market Life Cycle • Technology Audit • New Product Development • Segmentation • Role of Internet • What is not different? CONSUMERS People are different and they are different at different times

13. Challenges of Business Marketing • Why is Business Marketing different? • Difference in customers and all the P’s Each has its own idiosyncrasies

14. The C’s of Marketing

15. Industrial Vs Consumer Marketing

16. Industrial Vs Consumer Marketing

17. Industrial Vs Consumer Marketing

18. B2B Marketing External Environment Internal Organization External Linkage Internal Linkage Customer Marketing Manufacturing • Derived Demand • Complex buying processes • Concentrated customer base • Emphasis on technology • High level of customization • Made to order

19. Contribution of Marketing within Firm Corporate/Business Unit level The Policy Question - Marketing’s Answer - Tools - HOW TO DEVELOP A CUSTOMER FOCUS? Bring the voice of the customer into the organization Market Research, Customer Visits, Market Orientation Audits Product level The Policy Question - Marketing’s Answer - Tools - HOW TO BEST ADAPT TO THE MARKET? Develop a value proposition and competitive positioning based on customer needs Customer and competitor analysis Executional Level The Policy Question - Marketing’s Answer - Tools - HOW TO BEST TAKE THE PRODUCTS TO MARKET? Develop a value proposition and competitive positioning based on customer needs Consumer Research, Product Testing, Communications Research, Channel Audits, etc. *Marketing Management, The McGraw-Hill Lal, Quelch, Rangan

20. Customer Development Process Product-Centric Approach Customer-Centric Approach

21. Customer Development Process Suspects Prospects Disqualified First-time customers Repeat customers Clients Members Partners Ex-customers

22. Market Driven Vs Market Driving MOVING UP THE VALUE CHAIN

23. Paradigm Shift • People move purchases to suppliers that give them more for their money -value for money • On the internet any person regardless of the position he or she has in and organization will be able to find the best information available on any product ,services ,providers etc • Customers often know exactly what they want – this makes it more difficult for the sales person to influence the choice

24. Challenges • Enter electronic market as quickly as possible • Learn to make use of new technologies to save money and to increase creativity • Work at maximum speed and discard long term strategic thinking • Develop multiple concepts

25. Challenges • Rethink strategies and support systems for the Market Place • Customers can change suppliers easily and frequently • E-Business ,E-Commerce overtaking the present system –Brick & mortar

26. Challenges • Make strategic alliances • Work upon hybrid channels • Arrest the commodity trend • Manage across national boundaries

27. What do we have to understand? • Purchasing (Buying ) Organization • Buying Processes • Roles of Buying team members (Cross Functional Teams ) • Delegation of Powers of Buying Team members –Financial etc • Life cycle costing –Value Analysis ,Performance Evaluation, Productivity etc • Cost of Ownership