Beruflich Dokumente
Kultur Dokumente
Yogesh Baviskar
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Introduction to B2B Market Organizational Buying Behavior Relationship Management Segmenting the Business Market Managing Products & New Innovations Management in B2B Market Managing Services in B2B Market Price Management in B2B Market Channel Management in B2B Market E-Commerce in B2B Market Business Marketing Communication Case Studies & Further Discussion
Definition:Business Marketing is the practice of individuals, or organizations, including commercial businesses, governments and institutions, facilitating the sale of their products or services to other companies or organizations that in turn resell them, use them as components in products or services they offer, or use them to support their operations
Consumer Market
Geographically Disbursed Mass Market
Product Characteristic
Standardize
Service Characteristic
Buying Behavior
Involvement of Various functional area Involvement of family members from both the ends Purchase Decisions are performance based and rational Technical Expertise Stable Interpersonal relationship Purchase decisions are mostly based on Physiological /social/psychological needs Relatively less technical expertise is required Non- Personal relationship
Consumer Market
Indirect Multiple layer of Intermediaries
Promotional Characteristic
Price Characteristic
Competitive Bidding and Negotiated Prices List Price for Standard Products
Representative Agency
Distribution Dealer
Customer
Customer
Customer
Derived Demand: The demand for a good or service that results from the demand for another good or service. Ex.:- Pig Iron ---Steel ---Steel Sheets---Automotive part companies--Automobiles--End customer
Demand Elasticity:-
Raw Materials
Manufactured Materials Component Parts Subassemblies
Iron ore, Crude oil, fruits, fish Acids, Fuel oil, Steel , Chemicals Gauges, TV tubes, Tyres, Exhaust Pipe in Motor Cycle
Capital items
Plants, Office Building Lubricants, Fasteners, paints , Electrical Items Legal, Auditing, Advertising, Courier, Market Research
Goals Of Purchasing
Uninterrupted Flow Material Manage Inventory Improve Quality Developing and Managing Supplier relationships Achieve Lowest total cost Reduce Administrative cost Advance Firms Competitive Position
2.Understanding B2B Market & Environment with Buyers Perspective Purchase Orientation
Buying Orientation Procurement Orientation Supply chain Management Orientation
Government as a Customer
Buying Orientation
Institutes
Buying Orientation
Environmental Analysis:Ecological & Physical 1.Pollution & Conservation of Natural resources 2. Utilities, Manpower & Transportation
Environment Analysis:Internal Environment:Company Location, R&D Facilities, Production Facilities Human Resource and Image of the company External Environment:Micro Environment :Customers & Competitors Suppliers
Macro Environment:Economic Technological Government/Political & Legal Cultural & Social Investors & NGO
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Environmental Forces
Straight Rebuy
Modify Rebuy
New Task
3.The Nature of Industrial Buying and Buying Behavior Forces Shaping Organizational Buying Behavior
Environmental Forces
Organizational Forces
Group Forces
Individual Forces
3.The Nature of Industrial Buying and Buying Behavior Roles of Buying Center Initiator :Recognition of Problem or Need Buyer :Obtains the quotation Supplier evaluation & Selection Processing purchase order Expediting deliveries Implement the purchasing policies of the organization User of Product/ Services ( Could be Initiator) Individuals who could influence the purchasing decision ( Technical / Design Engineers / External consultants ) Individuals who control the flow of information to the members of buying center Individuals or group of people who make the actual purchase decisions about the product or services
User:Influencer :Gatekeepers:Deciders:-
CRM Strategy
Determine which type of relationship matches the purchasing situation and supply-market conditions for a particular customer. Develop a strategy that is appropriate for each strategy type.
Crafting the right value proposition for the customer Design the Best Process to deliver the product /services
Benefits of Segmentation:Concentrate on unique needs of target segment, Focus on product development, Develop profitable pricing strategy Select the appropriate channel Develop communication and advertising strategy
:-
Macro Segmentation
Variable of Segmentation Characteristics of Buying Behavior Size Geographical location Usage rate Structure of procurement Small. Medium & Large ( Based on Sales or o. Of Employees Region , Industrial zones Non user, Light user, Moderate user, heavy user Centralize , Decentralize Breakdown of Segments
Product/ Service Application End market serve Value in use As per Product/Service High , Low
Characteristics of Purchasing Situations Types of buying situations Stage in purchase situation New task, Modified task, Straight Rebuy Early stages, late stages
Micro Segmentation
Variable of Segmentation Key Criteria Purchase Strategies Structure of decision making unit Importance of purchase Attitude towards vendor Organizational innovativeness Personal Characteristics of Top Management or Decision makers Demographics Decision Style Risk Confidence Job responsibility Age, Educational background Normative , conservative, mixed mode Risk taker, Risk avoider High, low Purchasing, production, engineering High , Low Favorable, unfavorable Innovator, Follower Breakdown of Segments Quality, Delivery, supplier reputation Optimizer, Satisfier
Core Benefits Customer Value Add-on Price Sacrifices Acquisition Costs Operations Costs
Source: Adapted from Ajay Menon, Christian Homburg, and Nikolas Beutin, Understanding Customer Value, Journal of Business-to-Business Marketing, 12, no. 2 (2005), pp. 47.
2. Custom-built products
3. Custom-designed products
4. Industrial services
Successful brand management involves developing a promise of value for customers and then ensuring that the promise is kept through the way in which the product is developed, produced, sold, services, and promoted.
Resource Commitments
Three ingredients were important here: 1. Top management committed the resources necessary to meet the firms objectives for the total product effort in the firm. 2. R&D budgets were adequate and aligned with the stated new product objectives. 3. The necessary personnel were assigned and were relieved from other duties.
Lead user projects are conducted by a cross-functional team that includes four to six managers from marketing and technical departments; one member serves as project leader.Team members typically spend 12 to 15 hours per week on the projects.
Product advantage refers to customer perceptions of product superiority with respect to quality, cost-performance ratio, or function relative to competitors.
Marketing synergy represents the degree of fit between the needs of the project and the firms resources and skills in marketing.
Innovators These are the people who are fundamentally committed to new technology on the grounds . Early Adopters These are the true revolutionaries in business and government who want to use the discontinuity of any innovation to make a break with the past and start an entirely new future. Their expectation is that by being first to exploit the new capability they can achieve dramatic and insurmountable competitive advantage over the old order. Early Majority These people make the bulk of all technology infrastructure purchases. They do not love technology for its own sake, so are different from the techies, whom they are careful, nonetheless, to employ. Moreover, they believe in evolution not revolution. they are interested in making their companies' systems work effectively and look to adopt innovations only after they have established a proven track record.
Late Majority These consumers are pessimistic about their ability to gain any value from technology investments and undertake them only under duress -- typically because the remaining alternative is to let the rest of the world pass them by. They are very price-sensitive, highly skeptical, and very demanding. Rarely do their demands get met, in part because they are unwilling to pay for any extra services, all of which only reconfirms their sour views of high tech. Laggards This group delight in challenging the hype and puffery of high-tech marketing. They are not so much potential customers as ever-present critics. As such, the goal of high-tech marketing is not to sell to them but rather to sell around them. The Marketing Strategy With these customer segments in mind, the typical approach is to seed new products with the innovators so they can help educate the early adopters. When the early adopter's are interested, do everything that is possible to make them happy as they will then serve as references for the early majority which is the group where most of the money is made from a new product or service. Then leverage the success with this large group so that the product matures and stabilizes enough to be of interest to the late adopters. All the