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Introduction To Business Marketing (B2B) : by Shahood Raza Iqbal

This document provides an introduction to business-to-business (B2B) marketing. It defines B2B marketing as facilitating the sale of products or services from one business to another. The practice has existed since the beginnings of commerce, though modern research on B2B marketing is relatively new. Key differences between B2B and consumer marketing are outlined, such as more technical and customized products in B2B. Strategies for successful B2B marketing include branding, targeting niche markets, premium pricing, and emphasizing sales forces. The business market is the largest of all markets in terms of transaction volume. Technological changes, entrepreneurship, and evolving marketing frameworks are driving continued growth in B2B.

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82 views13 pages

Introduction To Business Marketing (B2B) : by Shahood Raza Iqbal

This document provides an introduction to business-to-business (B2B) marketing. It defines B2B marketing as facilitating the sale of products or services from one business to another. The practice has existed since the beginnings of commerce, though modern research on B2B marketing is relatively new. Key differences between B2B and consumer marketing are outlined, such as more technical and customized products in B2B. Strategies for successful B2B marketing include branding, targeting niche markets, premium pricing, and emphasizing sales forces. The business market is the largest of all markets in terms of transaction volume. Technological changes, entrepreneurship, and evolving marketing frameworks are driving continued growth in B2B.

Uploaded by

Ali Akbar
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Introduction to Business

Marketing (B2B)
By
Shahood Raza Iqbal
Definition
Business Marketing is the practice of individuals, or
organization including, commercial businesses,
governments and institutions, facilitating the sale of their
products or services to other companies or organizations
that in turn resell them, use them as components in
products or services they offer, or use them to support their
operations.
Business Marketing is also known as Industrial Marketing
and Business-to-Business Marketing (or B2B marketing).
Origin
The practice of one purveyor of goods doing trade with
another is as old as commerce itself.
Industrial marketing has been around since the mid-19th
century, although the bulk of research on the discipline of
business marketing has come about in the last 25 years.
Differences between Business and Consumer
Marketing
Market Characteristics
Business Marketing : Geographically concentrated, relatively
fewer buyers.
Consumer Marketing : Geographically disbursed, mass
market
 Product Characteristics
Business Marketing : Technical Complexity, Customized
Consumer Marketing : Standardized
 Service Characteristics
Business Marketing : Service, Timely delivery very important
Consumer Marketing : Service, Timely Delivery somewhat
important
Decision Making
Business Marketing : Observable Stages, Distinct
Consumer Marketing : Unobservable, Mental Stages
Channel Characteristics
Business Marketing : Shorter, More direct, fewer intermediaries
Consumer Marketing : Indirect, Multiple layers of
Intermediaries
Promotional Characteristics
Business Marketing : Emphasis on personal selling
Consumer Marketing : Emphasis on Advertising
Price Characteristics
Business Marketing : Competitive bidding, price negotiated
Consumer Marketing : List Price or MRP
Who is the Customer in B2B?
Business customers fall into four broad categories:
Companies that consume products or services,
Government agencies, Institutions and Resellers(Dealer /
Distributor)
B2C sale is to an individual. While B2B sale is to an
organization.
The Marketing mix is affected by the B2B uniqueness
which include complexity of business products and
services, and diversity of demand.
B2B Marketing Strategies
B2B Branding is different from B2C in some crucial ways,
including the need to closely align corporate brands,
divisional brands and product/service brands and to apply
your brand standards to material often considered
“informal” such as email and other electronic
correspondence. it is mainly of large scale when compared
with B2C.
Quite often, the target market for a business product or
service is smaller and has more specialized needs reflective
of a specific industry or niche.
Contd….
The business market can be convinced to pay premium
prices more often than the consumer market if you know
how to structure your pricing and payment terms well. This
price premium is particularly achievable if you support it
with a strong brand.
The importance of a knowledgeable, experienced and
effective direct (inside or outside) sales force is often
critical in the business market. If you sell through
distribution channels also, the number and type of sales
forces can vary tremendously and your success as a
marketer is highly dependent on their success.
Contd…
The purpose of B2B marketing communications is to
support the organizations' sales effort and improve
company profitability.
B2B marketing communications tactics generally include
advertising, public relations, direct mail, trade show
support, sales collateral, branding, and interactive services
such as website design.
How big is business marketing?

Business marketers serve the largest market of all; the


dollar volume of transactions in the industrial or business
market significantly exceeds that of the ultimate consumer
market.
For example, companies such as GE, DuPont and IBM
spend more than $60 million a day on purchases to support
their operations.
Purchases made by companies, government agencies and
institutions account for more than half of the economic
activity in industrialized countries such as the United
States, Canada and France.
What's Driving Growth in B2B Marketing?

The tremendous growth and change that business marketing


is experiencing is due in large part to “three -revolutions"
occurring around the world today
First is the ‘Technological Revolution’. Technology is changing
at an unprecedented pace, and these changes are speeding up
the pace of new product and service development.
Second is the ‘Entrepreneurial Revolution’. To stay
competitive, many companies have downsized and reinvented
themselves. Adaptability, flexibility, speed, aggressiveness and
innovativeness are the keys to remaining competitive today.
Contd…
The third Revolution is the one, which is occurring within
marketing itself.
 Companies are looking beyond traditional assumptions
and adopting new frameworks, theories, models and
concepts.
 They're also moving away from the mass market and the
preoccupation with the transaction.
Relationships, partnerships and alliances are what define
marketing today.
THANK YOU

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