B2B - (2.1) Introduction to B2B Marketing Flashcards
Define B2B Marketing
B2B = Transactions between companies and organizational customers.
> Buyers are companies and not individual end customers.
> Industrial marketing” also
> Broad understanding
> Ex: retail, pharma, services for organizations, ..
Compare EU and US in start up funding
EU always dominates US on terms of funding efficiency.
US puts a lot of money in start ups, but gets less out of it than the EU.
Difference is the biggest in the B2B sector.
What are the 3 criteria to be considered a “hidden champion”?
- Top 3 in market worldwide and number 1 on continent
- Revenues < 5 billion EUR
- Small level of awareness within general public
» Many hidden champions are B2B
Why work for a hidden champion?
More diversity and responsibility in tasks, less competition»_space; Europe has only hidden champions in niche markets
Who is the leading country in hidden champions?
Germany, but this result could be biased as the inventor of this concept is German and has the biggest knowledge and network here.
What are B2B responses to Covid?
Go-to-market sales models have changed
- In person ways dropped with 50%
- Online video calls have risen with 40%
- Online chats have risen with 20%
What is the typology of organizational customers in B2B?
- Governmental organizations
- Public institutions
- Private sector companies
» Users (end customer in own production proces)
» Original equipment manufacturers (OEMs) (process and sell to other company)
» Retailers (sell it to customers)
Sum the characteristics of B2B marketing
- Derivative character of demand
- Multiple buying influences
- Multi-organizational participation
- High degree of formalization
- High degree of individualization
- Particular relevance of services
- Long-term nature of business relations
- High degree of interaction
Explain: derived demand in B2B =
Manufacturer in B2B has to know the demand of all following customers > purpose is that the end customer wants your begin product for all the chains between.
Explain: multi-organizational participation in B2B =
A lot of parties are involved with your customers and underway to your customer (banks, engineers, authority, consultants,..)
Explain: formalization in B2B =
A lot of procedural guidelines in the decision processes of the customer > how many alternative offers, evaluation criteria, involved stakeholders
Explain: individualization in B2B =
Specific requirements by many organizational customers, standard products are rare
Explain: particular relevance of services in B2B =
After sales service, especially for complex products are high levels of investment.
Explain: long term nature of business relations in B2B =
- Longevity of products
- Importance of ongoing services
- High specific investments
Explain: high degree of interaction in B2B =
Personal contact is the key factor - personal selling and systematic CRM play important roles.
