B2B Marketing Module B Flashcards
BSB Marketing- definition
=describes marketing activities that relate to business transactions between companies and organizational custoemrs.
–>Purchases are made by organization or institutions, not by end customers.
Specific characteristics of B2B marketing
- Derivative character of organizational demand
- Multiple buying influences
- Multi-organizational participartion
- Long-term nature of business relationships
- High degree of personal interaction
Specific characteristics of B2B marketing: 1. Derivative character of organizational demand
= Demand for industrial products is derived from the ultimate demand for consumer products
Implications:
B2B companies need to consider in addition to direct customers, also the customers located downstream in this process, e.g., to forecast demand on different level of the market.
Specific characteristics of B2B marketing: 2) Multiple buying influences
= Buying decisions by business customers often involve multiple buying influences, rather than a single decision maker.
Buying center: A group of individuals or groups who participate in an organizational purchasing decision-making process, and who share some common goals and the risks arising from the decision.
Implications: Several members of an organization are involved, Firms who want to sell to these organizations need to consider the different members. –>see picture
Specific characteristics of B2B marketing: 3) Multi-organizational participation
= Multiple organizations are often involved in the procurement process
implications: this multi-organizational participartion necessitates stakeholder management.
Specific characteristics of B2B marketing: High degree of personal interaction
= organizational buying behavior is characterized by a high degree of personal interaction.
Implications:
When marketing industrial goods, personal contacts play a key role in the success of the business relationship
- ->Personal sellying and systematic CRM are of major importance
- ->Key account management ensures high degree of personalization
Hidden Champions
= small and medium-sized businesses with low public visibility being typically world market leaders in a specific niche market (usually with world market share > 50%)
Hidden champions
Strategic positioning: Dominating global niche markets
Targeting of specific customer segments
High and increasing number of Hidden Champions in Germany
Typical characteristics of hidden champions
-family ownership and cooperative corporate culture
- Outside professional management
technology-based product leadership
Close customer relationships
positioning as “value leaders”
Marketing mix in B2B: Branding Management
= Branding is a relatively unexplored area in B2B marketing
Brands in B2B marketing are often considered to be less important than in consumer goods marketing.
- ->Objectrive product feature (such as quality) are more important
- ->Still, brands are important assets that serve to connect the company on a platform of trust with its customers.
Marketing mix in B2B: Branding Management
Ingredient brand and processing brands in B2B Marketing
A. Ingredient brand –>visible to end customers
B. Processing brand –>not visible to end customer; only intermediaries such as manufactureer or end producers.
Marketing Mix: B2B Pricing
Special features
factors complicating price setting in B2B markets:
- Increasing professionalization of procurement resulting in higher price transparency
- Information deficits with sellers ->systems of discounts and bonuses
- Internal interface problems with other functions
Selling techniques: three different selling approaches
Character and value selling examples
Specific characteristics of communication decisions
