THE

SIGNIFICANCE
OF B2B
MARKETING
 AGENDA
The significance of b2b marketing
Significance of Supply/ Demand & Value Chain
Characteristics of Organizational Market
Significance of Relationships & Networks
Supply/Demand Chain Ethics
The significance of b2b marketing 3

DEFINING B2B
MARKETING
The term 'business-to-business marketing is used to describe
the marketing activities of any kind of organization which
has exchange relationships with other organizations or
businesses
 5

“ BUSINESS OPPORTUNITIES
ARE LIKE BUSES. THERE'S
ALWAYS ANOTHER ONE

”
COMING.
Richard Branson
The significance of b2b marketing 6

SIGNIFICANCE OF B2B MARKETING

1 2 3 4 5&6

Purchasing power
Upstream inter- Key B2B activities of private & public sector
B2B activities make a
organizational are carried out B2C marketers are organizations can be huge
major contribution
trading supports 'behind the scenes learning from B2B
to most national B2B exchanges have
almost every end- of most B2C marketing practices a greater impact. on people's
economies
user market experiences lives than B2C trading
The significance of b2b marketing 7

VALUE CHAINS
A requirement of the supply/demand chain is that each
participating firm adds value in someway to the goods
flowing down it
 The significance of b2b marketing 8

SCM VS DCM
• Demand chain management (DCM) is an alternative approach
to supply chain management (SCM) that centers on the customer’s
needs and expectations first. Then, DCM works backward to
connect those needs to the supply side of your business.

• Unlike supply chain management, which is focused on supply

(like finding retailers who can put goods in customers’ hands),
demand chain management flips the script in the value chain
by starting with the customer’s needs.

• The supply chain asks: How can I get customers to buy the
inventory I ordered?
• The demand chain asks: Am I sourcing enough of the
products my customers want?
 9

ORGANIZATION MAIN ACTIVITIES

MOVING
MOVING PARTS MARKETING & PROVIDING
MANUFACTURING FINISHED
& MATERIALS SALES SERVICES
PRODUCTS

Purchasing Research & Personnel Organizational Supporting

Development infrastructure
Activities
ELEMENTS OF VALUE CHAIN
 The significance of b2b marketing 10

CHARACTERISTICS OF B2B MARKETS

1 2 3 4 5

International Buying processes

The size of the Concentration The nature of and decision-
aspects of
market business of buyer power demand making
SIGNIFICANCE OF 11

RELATIONSHIP &
NETWORKS
RELATIONSHIP MARKETING
(RM)

INTER ORGANIZATIONAL
RELATIONSHIP (IOR)

Inter-organizational relationship (IOR) management is thus an

important part of strategy in business markets. Collaboration between
firms over the development, supply, and support of products and services
is a core element of B2B marketing and S/DCM
The significance of b2b marketing
12

SIGNIFICANCE OF RELATIONSHIP
& NETWORKS

1 2 3
Shifting from Inter-firm • Needing to build
short-term collaboration relationships with
transactions underpinning network of
To long term stakeholders
effective S/DCM
relationships .
The significance of b2b marketing
13

SIGNIFICANCE OF RELATIONSHIP
& NETWORKS

Increasing awareness of
importance of
personnel/social
Networks
The significance of b2b marketing 14

SUPPLY/DEMAND
CHAIN ETHICS

Ethical concerns are becoming an increasingly

important element of B2B marketing and
purchasing as organizational stakeholders begin to
question how their firms have achieved their
trading results
The significance of b2b marketing
15

ETHICAL ISSUES IN S/DCM

1 2 3

Questionable Debates over Contribution of B2B

costs of supply marketers to
fairness in global
chain efficiency creating 'bid-down,
supply chains
contract-out' chains
The significance of b2b marketing
16

ETHICAL ISSUES IN S/DCM

Unethical practices
in B2B negotiations
& exchanges
The significance of b2b marketing
SUMMARY 17

• The extent to which business-to-business (B2B) markets pervade the global

and, indeed, local economy.

• How we define B2B marketing in terms of exchange activities between

organizations, and what this may mean for marketing managers.

• How the concepts of the supply chain, the demand chain, and the value chain
are inter- related in B2B marketing.

• The extent to which organizational markets differ from, and are also related
to, consumer markets.

• How our thinking about B2B marketing encompasses relationships and

networks as well as basic buyer-seller transactions.
• How ethical considerations can affect the management of supply/demand
chain relationships.
THANK YOU
M. Ussama Majeed