L2: B2B Marketing

Question 1

Key Areas for B2B

Answer 1

1. Value
2. Relationships
3. Value Proposition

Question 2

B2B companies

Answer 2

• Manufacturing companies (including services)
• Consulting firms
• Trading firm
• Banks
-> a lot of companies are both B2C and B2B

Question 3

B2B goods and services

Answer 3

• service, maintenace and operations (goods and services)
• building industries (building materials)
• digital products
• knowledge

Question 4

Foundational concepts

Answer 4

• Buying process – How do customer buy?
• Buying roles – Who is involved?
• Buying class – When do customer buy?
• Buying criteria – What do customers buy?

Question 5

Definition of B2B marketing

Answer 5

”The practice of Business Marketing is essentially the management of a process for understanding, creating and profitably delivering value”

Question 6

B2B buying process - one model

Answer 6

1. Problem recognition
2. Determination of specification and quantity
3. Search for sources (suppliers)
4. Acquisition and analysis of proposals
5. Evaluation or proposals and selection of supplier(s)
6. Order-routine specification
7. Performance feedback and evaluation

Question 7

Buying process for organizations (compared to general process)

Answer 7

• More steps
• More complex
• More people involved
• Longer time horizon
• Rational

Question 8

Buying roles in B2B (DMU)

Answer 8

• Influencer
• Gate-keeper
• Initiator
• Decider
• Buyer
• User
• (And sometimes also Payer)
\+ external stakeholders

Question 9

Buying classes

Answer 9

1. New buy
2. Rebuy - Routine buy of established offer and known suppliers
3. Modified Rebuy - As above but with some changes

Question 10

Buying (choice) criteria

Answer 10

• Price
• Lifecycle costs
• Quality
• Service
• Relationships
• Risk
• …

Question 11

Market Segmentation

Answer 11

• division of a diverse market into a number of smaller submarkets that have common features

-> Segmentation is the heart of marketing

Question 12

Five key criteria for selection of segments

Answer 12

1. Measurability - identifiable and understandable
2. Accessibility - promotion and distribution
3. Substantiality - large enough
4. Actionability - internal resources
5. Differentiable – homogeneous and different

Question 13

B2B market segmentation

Answer 13

• Macro
– Size
– Industry
– Geographic location

• Micro
– Choice criteria – DMU
– DM process
– Buy class
– Purchasing 
– Innovativeness

Question 14

Value equation - Benefits

Answer 14

• Operative benefits (cost-focused)
– More efficient processes
– Less maintenance
– Smaller stock

• Revenue enhancing benefits (business enabling)
– New markets
– Increasing price (or margin)
– Differentiation

• Intangibles
– Power
– Brand
– Reputation

Question 15

Customer Value as the fundament

Answer 15

positive inputs:
• perceived benefits:
- product benefits 
- service benefits 
- relational benefits

negative inputs:
• perceived sacrifice 
- monetary costs 
- time costs 
- energy costs

Question 16

Value equation - Sacrifices

Answer 16

• Buying costs
– Price
– But also other costs associated with buying

• Transaction costs
– All costs associated with getting (implementing) the product or service

• Usage costs (broad!)
– All costs associated with usage

• Intangibles
– Bad reputation
– Less power
– Dependance