CHAPTER 1 Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A
GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5 Published by Routledge
2013 1
Slide 2
Defining the Market Organizations buy products and services for
use in production of other products and services. They also buy
goods which they resell or rent to others. B2B market includes
customers such as hospitals, charities and government departments.
Organizations buy virtually every type of product and service. 2
Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL
PERSPECTIVE ISBN 978-0-415-53702-5 Published by Routledge 2013
Slide 3
Effective Marketing Programs Increasing sales. Reducing costs.
Meeting government regulations/avoiding negative PR. 3 Use with
BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE
ISBN 978-0-415-53702-5 Published by Routledge 2013
Slide 4
Exhibit 1.1 Cisco Systems advertisement Reprinted with
permission of Cisco Systems Cisco Systems advertisement Reprinted
with permission of Cisco Systems 4 Use with BUSINESS TO BUSINESS
MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5
Published by Routledge 2013
Slide 5
The Trappings of Marketing Declarations of support from top
management. Creating a marketing organization complete with product
management. New strategic or marketing planning approaches.
Complete marketing information (MIS) systems. Increasing marketing
expenditures for advertising, research and training. 5 Use with
BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE
ISBN 978-0-415-53702-5 Published by Routledge 2013
Slide 6
Conversion Sequence 6 Use with BUSINESS TO BUSINESS MARKETING
MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5 Published
by Routledge 2013 Fig. 1.1 Conversion sequence
Slide 7
Transactions to Make a Hairdryer 7 Use with BUSINESS TO
BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN
978-0-415-53702-5 Published by Routledge 2013 Fig. 1.2 Transactions
to make a hairdryer
Slide 8
Twelve Major Differences 8 Use with BUSINESS TO BUSINESS
MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5
Published by Routledge 2013
Slide 9
Differences between B2B and B2C Internal Differences
Interdependence of departments is greater in B2B. Product managers
have wider responsibilities in B2B, and must gain wider cooperation
from other department heads. Marketing strategy equals corporate
strategy. 9 Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A
GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5 Published by Routledge
2013
Slide 10
Differences between B2B and B2C Customer/Marketing B2B
customers tend to be more rational in their decision-making. There
is a narrower customer base in B2B: fewer customers, but larger
order values. More buying influences and locations in B2B.
Segmentation operates differently. More markets and channels in
B2B. Personal contact with customers is more important in B2B. 10
Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL
PERSPECTIVE ISBN 978-0-415-53702-5 Published by Routledge 2013
Slide 11
Differences between B2B and B2C Uncontrollables/Environment
Technological change has a greater impact on B2B markets because of
the costs of retooling and difficulty of predicting the effect on
consumer markets. Demand in B2B markets is derived from consumer
demand. B2B marketers are more distant from the end user, and
therefore operate with less information. 11 Use with BUSINESS TO
BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN
978-0-415-53702-5 Published by Routledge 2013
Slide 12
Relationship Building Development of relationships in B2B
markets plays a significant role. Relationships are not always
long-term in B2B markets, but interchange is more than a simple
transaction. Relationship needs can be used as a segmentation
variable in B2B markets. 12 Use with BUSINESS TO BUSINESS MARKETING
MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5 Published
by Routledge 2013
Slide 13
IMP sees B2B marketing as an ongoing interaction between buyers
and sellers. There are 4 major differences between traditional and
IMP approach: Single purchases vs. long-term complex relationship
Active vs. passive role in transactions Stable vs. unstable markets
Individual vs. supplier-customer interaction focus The IMP Approach
13 Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL
PERSPECTIVE ISBN 978-0-415-53702-5 Published by Routledge 2013
Slide 14
Business Goods Classification Entering goods and services:
products and services that become part of other products raw
materials, component parts and materials. Foundation goods and
services: products used to make other products, e.g. office
buildings, machine tools. Facilitating goods and services: products
and services that help an organisation achieve its objectives, but
which do not enter the production process, e.g. market research
services, cleaning services and products, accountancy services. 14
Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL
PERSPECTIVE ISBN 978-0-415-53702-5 Published by Routledge 2013
Slide 15
Summary Effective B2B marketing relies on three appeals:
increasing sales, reducing costs, meeting government regulations.
Trappings of marketing cannot substitute for true customer
orientation. B2B markets are larger and have more transactions than
B2C markets. Internets influence on buying strategies does not
eliminate need for basic marketing orientation. There are major
differences between B2B and B2C marketing. Relationships are more
important in B2B than in B2C. B2B products are classified as
entering, foundation, and facilitating. 15 Use with BUSINESS TO
BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN
978-0-415-53702-5 Published by Routledge 2013