B2B:

10 January 2022 09:20

10-01-22:

- Shark Tank: Yarn Bazaar- Organizing the textile industry. No transparency, delivery terms,
price.
Value added services to make the platform relevant for both buyers and sellers. Value
proposition to your clients.

EMAIL: bardiaconsulting@gmail.com
WATSAPP:
Book: Michael D Hutt and Dhiraj:

The marketing of goods and services for purposes other than personal consumption.

Size of the industrial market is huge. Companies like IBM huge large amounts annually to industrial
processes.
Main difference between B2B and B2C:

B2B B2C
1. More customization/ personalization/ 1. Number of clients will be huge. Volume bought
configuration. may not be that much.
2. Pricing
3. Channel
4. Promotion
5. Distribution: Work more closely with suppliers,
channel partners.
6. Number of stakeholders/ people involved in
making decisions is more.
7. A single customer buys a huge volume of
products.

Company Vedanta Making in house chips and investing millions of dollars. Govt also supporting 15bn
dollars in coming years. For silicon chips.
Buyers in B2B market: Business, Govt and instns for incorporation, consumption, use, resale.

- Manufacturers reps
- Industrial distributors
Both are B2B.

Key is the product's intended use. Same product may be used by both consumers and industry. Eg:
Dell. Selling laptops to both businesses and consumers.

Nestle: B2C… Kitkat Maggi but at the same time sell bake mixers, yogurts to businesses. Selling in
both these aspects is entirely different.

Derived demand: When direct demand increases, Derived demand will automatically increase. In
WFH scenario, laptop use increase. Components used in the laptop will also increase.
Travel demand, movie, restaurant etc hit due to lockdown. B2B processes supporting it gets hit.
Autopart industry hit due to decline in automobile sales

Fluctuating Demand: Home loan interest inc, Machineries, plumbing, construction material, demand

Notes Page 1
Fluctuating Demand: Home loan interest inc, Machineries, plumbing, construction material, demand
for all of these goes down. Increase/ dec in consumer demand result in fluctuating industrial
demand.

Quick delivery app like Swiggy, Dunzo: Leveraging on convenience: Quick Commerce. Consumers
getting more demanding. Jio Mart and Dunzo: Complete synergies witnessed.

Lecture 2:
Stimulating Demand: Stimulating overall demand of consumer goods by advertising etc to
promote the sales of their products.
Dell microprocessors and Intel processors.
- Spending on ads to increase the sales of the end product to promote the sale of their product
in turn
- Product differentiation: Intel has established its brand image over years and now has an edge
over others. Demand for the product and in turn RM increases. Ultimately generating profits.
- Manufactures can give discounts to channel partners. In turn overall demand increases,
benefits customers.

Price sensitivity:

OEM: Original Equipment manufacturer.

Examples: Dell

CASE:
Buying behaviour of laptop:
1. Pricing
2. Competitive differentiation: Product diff and how the product will fit in to the company
3. Better avenues for profits. Eg: After sales service by vendor, long term efficiency
4. Bulk sales
5. Consumer demand and the purpose/objective it serves.

Buying process:
A. Process started with need recognition/ problem identification. Company estb a new dept.
Problem may be recognized internally or externally, say, Launching a new product (internal) or
increasing sales by buying a new packaging machinery (external)

B. Creating general specifications.

Not necessary that goes through all the steps.

Buying Situation
1. New buy: Extensive problem solving, identification of
New task purchasing :

• Strategic decision: Should we go for the new product launch for which we require that
packaging machinery
• Judgemental decisions:
2. Modified rebuy: Not satisfied with the current vendor or product needs modifications. Say
technological upgradation.
3. Straight rebuy: Rebuying the same product again and again.

C. Extensive problem solving: Well defined criteria for comparing products and suppliers.

Ordering office supplies with the same vendor for 10 years. How to convince to buy from the other
vendor:
1. Competitive pricing
2. Better services
3. Better delivery, inventory

Notes Page 2
 3. Better delivery, inventory
4. Future prospects
5. Testimonials from other customers.
But takes time to establish trust and test the products of the other vendor

PIVOTING is also equally important.

Converting leads:
1. prices
2. services 24*7*365
3. Market leader's share was actually sinking after it.
4. Proposal of something of great value.

TOMA: Top of the mind awareness.

Exhibits part: Discussion forum: Questions asked.

LECTURE - 3

Over a period of time, logo has to change. Make it more simplistic, evolve to connect with the
present target market. Kia motors and Mahindra & Mahindra also changed their logo. Make it as
close to possible, else difficult for consumers to resonate with it.

Key difference in approach: Nestle Maggi v/s dessert mixes

1. Maggi, Kitkat: Emotiional connect for top of the mind recall, focus on ads. Attract retailers by
prominent shelf space, discounts.
2. Industries: Focus on product specifications. Technical specifications and creating value. Getting
the product approved by involvement of more players, personal relationship will be important.
Price negotiation since volume game. Providing the best quality service, after sale service and
catering to the needs and requirements of the dealers.

Business marketing is an influential factor in B2B marketing.

Notes Page 3
Business marketing is an influential factor in B2B marketing.
As a business leader, play on a lower cost or differentiation, Differentiation in the longer term is
more useful because lower price may create a price war, and newer technologies may further
reduce price.

Supply Chain:

Case Study : Karan

Harley Davidson Case:

1. Technology -
2. Porters five: Suppliers- New technology that might help in maintaining the differentiation of
the company
3. Competition
4. Differentiation strategy
Functional units:
1. Product vendor

Strategic priorities in purchasing:

Notes Page 4
GE: Beth Comstock: Important to simplify corporate story telling. Story to be able to connect to a
person, product. Understand what happens to get us to where we are. The kind of things we make.
What would a child think about GE. In Story telling, Ppl want to be inspired not sold. If ppl feel
connected, commerce will
Automatically follow.

AJANTA : Q1

Innovative heat resistance glasses, light weight conatiners in different shapes

Maintain temperature
ITC: renposible luxury: replaced plastic bottles with glass

Q2
Sales by sourcing global contracting

Notes Page 5