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1.0 Introduction
1.1 Origin of the report:
In program Marketing Communications and Business to Business Marketing is an
introductory course to get familiar with the practical orientation of business. Our
course teacher has provided us to prepare a report on assigned topic related to the
course. I have prepared our report paper based on our course teachers assigned
topic.

1.2 Literature Review:
Generally, Business-to-business marketing is about meeting the requests of other
businesses. Since 1990s, many B2B related models and theories have been
developed and evaluated. But there are various criticisms of work in this field have
arisen. Ford (1998) finds two major reasons of regarding issues in B2B marketing; (1)
lack of defining significant problems associated with validation of B2B terms and
methodology; (2) organizational internal and external operations are not linked with
each other, so, there is a lack of investigation in finding out, what is happening in the
business environment and how the relationships are changing.
B2B markets have a more complex decision making unit as compared to B2C
markets (Harrison et al., 2006). Industrial markets are different from consumer markets
in terms of purchase decision making process and also the products. In purchasing
matrix high risk products such as materials and plant machinery are normally
purchased by top-management; and middle & lower level managements are
responsible in buying low risk products such as office insurance and stationary. The
Figure 1 shows the purchasing decision matrix of industrial products.
Figure (1) The Risk-Value Purchasing Decision Matrix
Source: Harrison et al. (2006)

In B2B markets the process of buying is often more complex than to B2C markets
because of purchasing risky products. B2B buyer needs to be more balanced and
should have broad knowledge about products and markets.
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Another problem associated with B2B marketing is that B2B products are more
complex and a B2B marketer needs to have full knowledge and technical expertise
in providing technical details to the customers at the time of sale (Harrison et al.,
2006) and the success of whole product line depends on sales team in B2B context.
In addition, in business-to-business markets, companies buy limited number of buying
units by following Pareto Principle or 80:20 rules, so it is necessary for the B2B
marketers to emphasize on establishing long term relationships with buyers especially
in emerging markets such as China, India and Russia.
1.3 Objectives of the Study:
The main objective of this study is to find out the possibilities and perceptions about
the B2B Marketing and brand management.
1.4 Methodology of the Study:
The study is based on both primary and secondary data sources. The major sources
of secondary sources include publications of various authors, research reports,
journals, website etc. that are indicated in the references.
















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2.0 Business to Business Marketing
Brands are an important part of all cultures across the planet, as well as in the
business world. Brands help people to make decisions whether small ones and big
ones. Business marketing is the practice of individuals or organizations (commercial
businesses, governments and institutions) facilitating the sale of their products or
services to other companies or organizations that either resell them and use them as
components in products or services they offer, or use them to support their
operations.
B2B marketing is different type in terms of targeting an intelligent customer who is
sophisticated and does not desire purchase. As a B2B marketer, one is likely to face
great challenges such as improving lead quality, managing complex sales, and
customers requirements and sales team. B2B marketing can be defined as:
The practice of individuals or organizations, including commercial businesses,
Government institutions, facilitating the sale and resell of their products/
services to other organizations/institutions
B2B branding is the most popular issue in the current literature where marketers have
discovered the impact of branding in B2B context. According to Kotler and
Pfoertsch (2006) branding is just as relevant to B2B as in B2C. In addition, branding is
helpful to increase customers loyalty, reduce buying risks, add value for customers
and expresses complex information about products and services. B2B brand
relevance can be judged from the vivid examples of Microsoft, IBM, Dell, Cisco, HP,
Intel, Siemens, Coca-Cola, FedEx, and General Electrics.
2.1 Consumer Marketing
Markets dominated by products and services designed for the general consumer.
Consumer markets are typically split into four primary categories: consumer
products, food and beverage products, retail products, and transportation
products. Industries in the consumer markets often have to deal with shifting brand
loyalties and uncertainty about the future popularity of products and services.
2.2 Difference between B2B and B2C
The major misconception about branding is that it is only relevant to consumer
products and has no effects on B2B marketing. Practically, B2B branding is a
different concept for industries in terms of their complex products, buyers
preferences, and personal relationships. According to Bengtsson and Servais (2005)
many things are common in B2B and B2C branding but there are also differences
which exist specifically in relation to their purchase processes. Linder et al. (2007)
highlights some importance differences between B2C and B2B branding as shown in
the Table 1.

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Table (1) The differences between B2B and B2C markets
B2B BRANDING B2C BRANDING
Aimed at intermediate value provider Aimed at the end-user
Two way relationship Transaction or One way relationship
Small number of customers Large number of customers
Buyers reached through specialized
media
Buyers reached through mass media
Multi-step buying cycles Short sales cycles
Relatively complex product offering Relatively simple product offering
Never on impulse Purchase can be an impulse
Marketing is about educating Marketing about convincing
Source: Linder et al. (2007)
Another misconception about branding is identified by Kotler and Pfoertsch (2007)
that branding is not just selecting a logo or name for the organization because
changing the name or logo has no worth if there is a lack of underlying purpose.
One possible reason for such misconception could be the misunderstanding of
branding concept. Kotler and Pfoertsch (2007) defined B2B brand as:
A set of attributes, benefits, beliefs, and values that differentiate the
products and services, moderate and simplify the complicated decision
making processes.
So the differences between B2B and B2C marketing approaches and decision
behavior are
In the demand for products
In the products supplied
In the target group to serve
In the competitive environment
In the process of decision and in customer
behaviour

2.2.1 Demand for Products
B2B marketers face a resulting demand within the value chain. The demand for a
product or service is not primary out of the needs and wants of end customers
whether it ultimately depends on the demand of companies.
Demand for a certain product or service depends on the achievement of
companies in the value chain. In the Inelastic demand, especially in the short run,
the demand for B2B products normally is not much affected by price changes. Price
therefore is hardly a good idea for differentiation.


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2.2.2 Different products
The products in B2B markets are often more complicated than fast moving
consumer goods (FMCG). More complicated products take more time to explain.
As industrial products are often exclusive products and the investment volume is
considerably higher, the customer has a significantly greater risk to take wrong
decisions. A very particular benefit that many B2B products can offer is additional
services. These can be added to the product as a chance for distinction from
competition, but also a chance for further revenue.
2.2.3 Different structure of target group
In most B2B transactions the seller is provoked with a partial target group. This means
less potential customers and strong competition, but also the benefit is better
knowledge about the customer. In some cases, the target group is geographically
focused. In a lot of cases the performers in B2B business are acting globally as well as
networked. Multi-organizational decisions range the target group even to people
outside the customers company.
2.2.4 Special competitive surrounding
In compare to B2C where often a greater number of competitors are selling to an
unlimited mass of consumers, in B2B a small number of competitors are fighting for a
small number of potential customers. It is to be expected that most customers and
competitors know each other quite good and they are informed about their
strengths and weaknesses.
2.2.5 The process of decision deviates
Generally in B2B markets decisions are more determined. In many circumstances,
the decision process is traditional like bids, tenders, legal constraints and contracts
ease the scope for the use of marketing instruments. Due to the importance of
decisions the process to decide a supplier takes longer than with most consumer
goods. Much more information and contact between supplier and customer is
essential. The process of decision differs the organizational buying behavior is multi-
level and engages more than one person to support. Webster/Wind recognized five
important roles in the Buying Center. An extra challenge of typical B2B businesses:
the final decision is made in absence of the supplier. As he has no chance to effect
on the customer in this situation, he has to find speakers for his product in the
suppliers decision team.




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3.0 Company Profile
Company Name: BASF - The Chemical Company
Slogan: We dont make a lot of the products you buy. We make a lot of the
products you buy better.

This is the corporate statement that has made the BASF corporate advertising
campaign the most recognized of any corporate campaign from the North
American chemical industry. BASF describes itself as the worlds leading chemical
company. It is very successful and highly regarded around the world. Based in
Europe, they have large operations in North America. BASF reported 2005 sales of
42.7 billion (up 14 percent from last year) and income from operations (EBIT) before
special items of more than 6.1 billion (up 17 percent). The companys 83,000
employees manufacture thousands of products globally. The fact is they dont make
many finished products virtually all of the 6,000-plus products that they
manufacture are ingredients that enhance the finished products consumers buy
daily.

3.1 B2B Marketing process
Chart 1: The B2B marketing process















Society Culture Government Law Politics Technology Environment
Analysis and Forecasts
Market Planning
Marketing Mix Budget Planning
Products, Price, Place, Promotion

Controlling, Optimization, Adaptation
Realization
Market Strategy
Target Target Groups Positioning
Demand Market Competition Trading Partners Owning Company
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3.2 Technical Change in market and BASF
Car manufacturers have for a long time faced many problems related with paint
finishes. Difficulties occur with consistency of the finish, colour matching and toning
plus issues concerning preparation and application processes and technologies and
all associated costs. Technology, one of the key macro-economic factors, pops up
here.

BASF advanced a paint-free film moulding process which enables the making of
exterior car body parts that no longer need painting. Coated or coloured plastic
films ensure that exterior car bodies are an same shade. Films of special BASF plastics
are moulded exactly into the shape specified by the customer and then insert-
moulded using specially developed plastics. For the roof of the Smart car, for
example, BASF were able to develop the first large exterior body part in which areas
of glass and plastic components appear to be made in one piece, established by
the way the black-tinted sunroof sits perfectly in the surrounding high-gloss plastic
film. Launched in partnership with DaimlerChrysler in Rastatt, Germany, in 1997, the
system has been adopted by other car manufacturers. For example, VW, Audi, Ford
and Renault are involved and have appointed BASF to take process responsibility
with regard to materials and stock management as well as coordination of external
and internal logistics. Furthermore, BASF inspect incoming goods, organise and
supervise suppliers, and are responsible for colour management, quality control of
materials and processes and analyses.

3.2.1 Opportunity and threat

BASF not only add greater value by overcoming many of the paint-associated
technical problems experienced by car manufacturers but have also reduced their
customers material and process costs, improved quality and now add by managing
their customers logistics and material handling requests.



Figure: Threats and opportunity for BASF
New technology has had an important impact on organizational purchasing
activities. It has introduced organizations to new suppliers, often based in different
countries. It can reduce business costs and speed the process of cooperation and
purchase. However, organizations need to ensure that their tactically important
supplier relationships are protected and that technology is used to supplement, not
destroy established, long-term, valued relationships.


Increased Value
Market capture
Opportunity
Better Products
Improved socio technology
Threat
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3.3 Framework to support the process


























Understand
Business
Strategy
PESTEL
Market
analysis
Positioning Segmentation
Understand
Competitio
Understand
company
Profit Segment
share
Revenue Market
share
Select the competitive
strategy



Manage
product

Support
sales
Manage
relationship

Manage
trade shows
Produce
collateral
Manage
CRM
Manage
Agencies
Manage
Web Site
Manage
campaigns
Brand
strategy
Sales strategy
CRM strategy
Strategic
customer
relationship
strategy
Marketing
communicati
on
strategy
Product
strategy
Channels
and partners
strategy
Price strategy
Analysis should
help
answering the
Questions

Why, Who,
What, How
How much
Purchasing
Process
Customer
needs
Understand
budget
Understand
the product
Prepare the marketing
plan
(action plan)
Market
share
Revenue Segment
share
Profit
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3.4 Applying the concept
B2B marketing is concerned with the identification and contentment of business
customers needs. The expectation and satisfaction of these needs requires that all
stakeholders benefit from the business relationship and associated transactions.
BASFs customers develop satisfaction by purchasing goods and services that are
apparent to provide them and/or their organizations with particular value. B2B
marketing managers must understand these needs and develop marketing
programs which include a set of goods and services that have the funds for unique
solutions, and hence value, for customers.

Theoretical approaches to business segmentation have advanced but the practical
application of these different strategies is reported to be less than satisfactory. More
research is required on the barriers to successful implementation of segmentation
activities. BASF need to position them so that they are supposed by customers to
differ from the competition and provide the potential for added value. Usually, the
focus of positioning approaches has been on key attributes and features that
seemingly add value. Increasingly, as corporate branding becomes a more central
part of the marketing communications policy, more expressive approaches to
positioning are developing.

Pricing is also an important factor in the perception of superior value. As market
value is determined by customers, it is important that supplying BASFs understand
the total contribution their offering provides their customers. This should be
considered in terms of the life-time value to the customer and the related total costs
that a customer capabilities. However, it should be familiar in the majority of
business-to-business markets and customer relationships; price alone does not
generate customer value.














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4.0 Conclusion
One of the primary features of B2B marketing is the significance of the numerous
relationships that BASF develops in order to attain their business and marketing
objectives. The development of inter organizational relationships as the central
boarder of marketing strategy has arisen from the original concepts concerning the
4Ps and the marketing mix.

The primary focus on the product as the unit of exchange shifted to one which
concentrated on the buyerseller relationship, where the customer was central.
Customer relationship marketing has developed in many ways but now both parties
are seen to be in a relationship.

However, it would be mistaken to expect an organization to hold deep meaningful
relationships with every other organization with which it enters into an exchange.
Some exchanges need to be short-term and based on products and low prices.
Others require deeper association and partnerships to create exchanges that are
balanced and represent competitive advantage and added value. If inter
organizational relationships are to be the foundation of existing B2B marketing
practice then the supply chain and related networks become a central aspect of
marketing and exchange value is devolved within the chain.

Finally, new technology has transformed B2B marketing and has enabled
organizations to undertake interactions faster, more efficiently and has significantly
reduced the cost base for many supply chains. Above all else, technology has given
organizations the chance to reassess the value of their communications with
customers and suppliers and to forge a portfolio of inter organizational relationships.













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5.0 Bibliography
Bengtsson, A. and Servais, P., (2005). Co-branding on industrial markets. Industrial
Marketing Management, 34, 706-713

Ford, D., (1998). Business relationships in changing world, 14
th
International
Marketing and Purchasing Conference. Finland: Turku School of Economics and
Business Administration

Harrison, M., Hague, P., and Hague, N., (2006). Why is Business to Business
Marketing Special? (whitepaper), B2B International. [online] Available:
http://www.b2binternational.com/assets/whitepapers/pdf/b2b_marketing.pdf
(March 28, 2011)

Kotler, P. and Pfoertsh, W., (2006). B2B Brand Management. Springer Publications
Ltd

Linder, C. et al., (2007). Understanding the role of brands in Business and
Consumer Markets. Germany: Pforzheim University