B2B Flashcards
What is b2b marketing?
marketing activities that relate to business transactions between companies and organizational customers
organizational customers
governmental org, private sector companies (user; OEM; retailers), public and non-profit instutions
characteristics of B2B marketing
high degree of personal-interaction
derivative character of organizational demand
long-term nature of business relationships
multi-organizational participation
multiple buying influences
derivative character
demand for industrial product is derived from the ultimate demand for consumer products
focus on upstream and downstream market
“consider customer´s customers”
multiple buying influences (buying center concept)
initiator - recognizes problem gatekeeper - controls flow of information influencer - has a say user - will use product decider - approves / senior purchaser - obtaining
implications of multiple buying influences
(buying center concept)
several members of an organization are involved - firms need to consider them, their roles and degree of influence
Hidden champions definition
SME´s
world-market leader in niche market
low public visibility
domination by market share, below 3bn revenue
Hidden champions characteristics
family ownership strong management over long terms technology based leadership value leaders close customer relationship high innovativeness
CAGR
CAGR=(vn/vo)^1/n - 1
multi-organizational participation
banks manufacturers
engineering firms
authorities - customer - consultants
long-term nature of business relationships
product longevity,
importance of service and maintenance
implications of b2b marketing characteristics?
…
Marketing mix in b2b segment (4ps)
product/branding
price
place
promotion
b2b product marketing
non standardized, highly technical, emphasis on company
- build strong bonds, brand=company, training of salesforce
b2b price marketing
higher transparency, information deficiencys seller,
relevance of price negotiations
usage of discounts and boni
stress benefit selling
b2b place marketing
customers purchases important
build strong customer relationship
salesforce builds brand
b2b promotion marketing
need detailed info, direct sales, integrate downstream customers, various stakeholders to consider
focus on technical info
satisfy different req.
use exhibitions & trade fairs
branding in b2b
ingredient brand - visible to end customers (tetra pak, intel)
processing brand - only visible to intermediaries
brand equity definition
incremental preference endowed by the brand to the product as perceived by an individual customer
brand equity model
measures the difference between an individual customer´s overal brand preference and his or her multi-attributed preference based on objectively measured attribute levels
eij=uij - u(o) ij = (uij - u(s)ij) + (u(sij) -u(o)ij)
factors that complicate price setting in B2B?
general characteristics implication for prices
increasing professionalization of procurement
information deficits
internal interface problems with other functions
incentive schemes importance
