b2b session 6

8/3/2019 B2B Session 6

1/25

WELCOME TO THE B2B

MARKETING SESSION 6S G Raja Sekharan


2/25

DIRECT OBJECTIVES OF THE COURSE

This course would introduce you to B2B

marketing practices, help you develop B2B

strategies and discuss ways to implement them.

Appreciate better, the differences between B2Band B2C practices.


3/25

B2B marketing course

Session 1 Introduction to B2B marketing

Session 2 Organizational buying behavior

Session 3 Customer relationship management and case

study

Session 4 Segmenting, targeting and positioning

Session 5 Organizational demand analysis

Session 6 Marketing mix New product development and

Pricing

Session 7 Services marketing

Session 8 International B2B marketing and case

presentation

Session 9 Presentation by visiting executives - 2*90 mins

Session 10 Wrap up


4/25

QUESTIONSCIA 1

1. For even columns

1. List and briefly describe the various differences

between B2B and B2C marketing.

2. Describe, in short, the various roles that people play

as members of the buying centre

2. For odd columns

1. Describe, in short, the nine steps of Organizational

buying process2. What are the various factors that increase the cost

of servicing a customer


5/25

RACAP OF LAST SESSION - DIFFERENCES

BETWEEN B2BAND B2C MARKETING

Market structure

Product characteristics

Buyer behavior

Decision making

Channel charactersitics

Promotion

Price


6/25

BUYING

PROCESS: THEBUYING CENTER

Buying

Center

UsersGatekeepers

Deciders Influencers

Buyers


7/25

Organizational Buying

Process

1. Problem

Recognition

2. General

Descriptionof Need

3. Product

Specifications

4. SupplierSearch

5. Acquisitionand Analysis

of Proposals

6. Supplier

Selection

7. Selection

of

Order Routine

8. Performance

Review


8/25

The Characteristics of High- versus Low-Cost-to-Serve Customers

High-Cost-to-Serve Customers

Order custom products

Order small quantities

Unpredictable order arrivals

Customized delivery

Frequent changes in delivery requirements

Manual processing

Large amounts of presales support

(i.e., marketing, technical, and sales resources)

Large amounts of postsales support

(i.e., installation, training, warranty, field service)

Require company to hold inventory

Pay slowly (i.e., high accounts receivable)

Low-Cost-to-Serve Customers

Order standard products

Order large quantities

Predictable order arrivals

Standard delivery

No changes in delivery requirements

Electronic processing (EDI)

(i.e., zero defects)

Little to no presales support

(i.e., standard pricing and ordering)

No postsales support

Replenish as produced

Pay on time


9/25

SEGMENTING THE B2B MARKETS


10/25

Selecting well-defined groups

of potentially

profitable

customers.

HIGH-GROWTHCOMPANIES

SUCCEED BY:

Focusing

marketing

resources on

acquiring,

developing,

and retaining

profitable

customers.

Developing

distinctivevalue

propositions.


11/25


12/25

EXAMPLE CAR SEAT MARKET

Segments -Carmanufacturers and seatreplacement market

Car manufacturerssegment

Measurable Yes

Accessible Yes

Substantial Yes

Compatible Yes

Responsive May be

Measurability

Accessibility

Substantiality

Compatibility

Responsiveness


13/25

EXAMPLE CAR SEAT MARKET

Segments -Car

manufacturers and seat

replacement market

Seat replacement segment

Measurable may be

Accessible Yes

Substantial may be

Compatible Yes

Responsive may be

Measurability

Accessibility

Substantiality

Compatibility

Responsiveness

The art of segmentation involves identifying groups of

consumers large and unique enough to justify aseparate marketing strategy


14/25

COMPETITIVE ENVIRONMENTASSESSMENT1. Define industry boundaries

2. Identify current and potential competitors.

3. Determine the SWOT of competitors Focus on strategic intent of competitors

Focus on core competencies of competitors

4. Build strategies for various scenarios on

competitive moves and market changes


15/25

TECHNOLOGICAL ENVIRONMENTASSESSMENT1. Product technologyset of ideas embodied in

product or service.

2. Process technology (expertise)set of ideas

or steps involved in production of product orservice.

3. Management technology (expertise)

management procedures associated with selling

product.


16/25

SEGMENTATION BENEFITS

Attunes marketer to unique needs of customersegments

Focuses product development efforts, developsprofitable pricing strategies, selects appropriatedistribution channels

Provides valuable guidelines to allocate marketing

resources.


17/25

BASES FOR SEGMENTING BUSINESS MARKETS

Macrosegmentation (size,geographicallocation and orgn structure)

Microsegmentation (vendorrelation,puchasing decision,importance of

purchase)


18/25

Macro level segmentation is concerned with generalcharacteristics of buying organization, nature ofproduct application, and characteristics of buying

situation.

Selected Macrolevel Bases of Segmentation

Characteristics of buying organization:Size of potential customer Large, Medium, SME based on revenue,

employee size, purchase etc

Geographical location

Usage rate / Value of purchase Units/ value of usage of your

product/ serviceStructure of procurement centralized or decentralized

Nature of product application

End use of the product

Characteristics of purchase situation:

Type of buying situation New task, modified rebuy, rebuy

Stage of purchase process early stage, late stage


19/25

EXAMPLES OF POSITIONING

HIGH QUALITY, PROMPT DELIVERY, PREMIUM PRICE

OR

STANDARD QUALITY, LESS PROMPT DELIVERY AND LOW PRICE

Selected Microlevel Bases of

Segmentation


20/25

EXAMPLES OF SEGMENTATION

Routine buyers product not a large or criticalcomponent for them they will buy small quantity

per customer will not negotiate too much.

Relationship buyers value relationship product is not a large or critical component for themtoo will not negotiate too much.

Transaction buyers large and knowledgeablecustomers product is critical for them normally

value price higher than service

Bargain hunters large and knowledgeablebuyers product is very critical for them very

sensitive to pricing


21/25

SEGMENTATION BASED ON PURCHASING

STRATEGY

1. Satisficers approach given purchasing

requirement by contacting familiar suppliers

and placing order with first supplier to satisfy

product and delivery requirements.

2. Optimizers consider numerous suppliers,

familiar and unfamiliar, solicit bids, and

examine all alternative proposals carefully

before selecting supplier.


22/25

OTHER SEGMENTATION VARIABLES

Importance of Purchase -- appropriate when product isapplied in various ways by various customers

Attitudes toward Vendors analysis of how various

clusters of buyers view alternative sources of supply oftenuncovers opportunities

Organizational Innovativeness some organizationsinnovate more and are willing to purchase new industrialproducts than others

Personal Characteristics the characteristics ofdecision maker like personality(risk taker or conservative),demographics (age, education) etc help in segmentation


23/25

Identify macro segments

Identify micro segments andprofile the segments

Implement a segmentation

strategy

An Approach to

Segmentation of

Business Markets


24/25

TEAM PRESENTATION AFTER MID TERMS

Taj hotels create a marketing plan to address

the B2B segment of conferences, training

meetings and corporate road shows.

Oberoi group create a marketing plan toaddress the B2B segment of stay during official

travel for senior corporate executives


25/25

THANK YOU

b2b session 6

Documents