scope and challenge of b2 b marketing
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Scope and Challenge of B2B MarketingTRANSCRIPT
HBR
Scope and Challenge of B2B Marketing
Presentation by Narayanan Palani, PGDM (Exec)’2011-12
Products Sold in industrial markets are usually classified as:
• Heavy Equipment• Light Equipment• Systems• Raw Materials• Processed Materials• Consumable Supplies• Components• Services
Aspects Distinguishing Industrial Marketing/1
• The External Linkages• Derived Demand• Complex Buying/ Selling Process– The influence of the formal organization– The strategic importance of the item being
purchased– The cost of the item being purchased– The complexity of the need being serviced
• Concentrated customer base
Aspects Distinguishing Industrial Marketing/2
• The Internal Linkages– Emphasis on Technology– High level of customization– Order fulfillment mechanism
• Management Challenges• New Product Commercialization• Market Segmentation• Product Policy/Pricing
Aspects Distinguishing Industrial Marketing/3
• Channels of Distribution– An Industrial marketer will prefer a direct sales
force to external channels when,– There is a manageable number of customers– The purchase value is significant– Customers are concentrated geographically– The sales process is long and complex– Customers require a lot of information and
training in product use
Aspects Distinguishing Industrial Marketing/4
• Cross Functional and Interdepartmental coordination:– Large customers may be served by a joint team of sales as
well as technical people– There is a heavy emphasis on teamwork in industrial
marketing• Marketing Social Responsibility:
– Increased concern in environmental issues like pollution, waste, global warming
– Product design must include creative ways to use recycled parts and components.
– Business mission should address the society needs