The Presentation gives the basic information about B2B marketing.

1. BUSINESS TO BUSINESS(B2B)
MARKETING
AMIT KUMAR BIHANI

3. INTRODUCTION
 Its marketing of services and goods that help other
companies operate.
 Its transaction between businesses.
 Its volume is much higher than B2C.
 Originally coined to describe the electronic
communication between businesses or enterprises.
 Eventually it came to be used in marketing, describing
industrial or capital goods marketing.

4. DEFINITION
 B2B marketing is “Meeting the needs of other
businesses, though ultimately the demand for the
products made by these businesses is likely to be
driven by consumers in their homes.”
 B2B marketing is organizational sales and purchase
of goods and services to support production of other
goods and services for daily company operation or
for resale.

5. COMPONENTS OF BUSINESS MARKET
 Commercial Market.
 Trade Industries.
 Government Organizations.
 Institutions.

6. SEGMENTING B2B MARKET
 Demographic Segmentation.
 Customer-based Segmentation.
 Segmentation by End-Use Application.
 Segmentation by Purchase Categories.

7. DISTINGUISH BETWEEN B2B AND
CONSUMER GOODS MARKETING.
Points B2B Marketing Consumer Goods
Marketing
Product Relatively technical in nature, Standardized form.
exact form often variable.
Price Competitive bidding for List prices.
unique items.
Promotion Emphasis on personal selling. Emphasis on advertising.
Distribution Relatively short, direct Product passes through a
channels to market. number of intermediate links.
Customer Relations Relatively enduring and Comparatively infrequent
complex. contact, relatively short
duration.
Decision making process Involves diverse groups of Individual or household
members. makes decision.

8. HOW B2B COMPANIES MAKE MONEY?
• Sales of products.
• Service and maintenance fee.
• Transaction fee and listing fee.
• Advertising.

9. B2B Efficiencies
• Administration costs
• Search costs
• New markets
• Maverick purchasing (buying occurs outside the
normal channel)
• Joint purchasing
• System integration (with the legacy system)
• Supply chain management (from push marketing
to pull marketing)
• Collaboration (Outsourcing product design), joint
channel of distribution
• Middlemen (the new service particularly for small
business)

10. B2B’S ATTRIBUTES
 Huge market opportunity
 Financially light business model
 Scalable
 Acquisition cost effect
 Sticky products
 Multiple revenue stream

11. Efficiencies of B2B Electronic
Marketplaces
• A survey conducted in spring 2000:
– Only 1% companies are conducting e-
business through their websites.
– 80% B2B processes are still manual, and
20% considered automated are actually not
yet.

12. SEVEN STRATEGIES FOR KEEPING YOUR CUSTOMER
1. Meeting and exceeding customer expectations
2. Customer service
3. Penetration marketing
4. Defection prevention
5. Continuous relationship selling
6. Loyalty programs
7. winback

13. CHALLENGES FACED IN DEVELOPING
EFFECTIVE STRATEGIES.
Challenges of Government
Markets
Challenges of Institutional
Markets
Challenges of International
Markets

14. FACTORS MAKING B2B MARKET SPECIAL
 B2B Markets have a more complex decision making
unit.
 B2B buyers are more “Rational”.
 B2B products are often more complex.
 Limited number of buying units in B2B markets.
 B2B markets have fewer behavioral and needs
based segments.

15. THE RISK VALUE PURCHASING DECISION
MAKING.
High Value
Basic raw Complex
materials plant
Low Risk High Risk.
Paper Office
clips insurance
Low Value

16. CONTI……….
 Personal relationship are more important in B2B
markets.
 B2B buyers are longer term buyers.
 B2B markets drive innovation less than
consumer markets.
 Consumer markets rely far more on packaging.
 Sub brands are less effective in B2B markets.

17. Examples of B2B Markets.

18. THANK YOU