Business to Business Marketing Module-1

B2B Marketing : Meaning

“Business to business marketing” also known as industrial

marketing involves the sale of goods and services by one
organization to the other which in turn either further sells them
to the consumers or use them to support their own system.
Centennial Light
Planned Obsolescence
B2B vs B2C Marketing

B2C = Business-to-Consumer Market

Businesses sell products and services to consumers for household or
personal use
B2B = Business-to-Business Market
Businesses sell products and services to other businesses for use in
their daily operations or for making other products and services
 Type of Marketplaces

1. B2C
2. B2B
3. B2G
4. B2E
5. C2 C
6. G2C
7. P2P
8. F2 B
9. F2 C
Business to Business (B2B) Marketing Mix

Marketing mix helps to determine the unique selling points (USPs) of a

brand. Marketing mix goes a long way in determining how an organization’s
products and services are different from the competitors.
 Business Marketing Models

1.Traditional Local Small Business Model

Small locally operated businesses which are not much organized, can be categorized under
Traditional local business model still use primitive methods of promoting a particular product
or service.
2.Small Business with Good Site and Social Media Integration
Such businesses are much more organized and technically advanced than above
businesses.
3.Search Engine Optimized Site, Social Media and Email Marketing Integrated
Such businesses use internet to its full potential. Such businesses use email marketing to
promote their products and services.
 Business Marketing Vs Consumer Marketing

Business Marketing: Business Marketing refers to the sale of either products or services or both
by one organization to other organizations that further resell the same or utilize to support
their own system.

Consumer Marketing: on the other hand refers to the transaction of goods and services
between organizations and potential customers.
Customer value proposition (CVP)

Customer value proposition (CVP) consists of the sum total of

benefits which a vendor promises a customer will receive in return for
the customer's associated payment (or other value-transfer).

Customer Value Management was started by Ray Kordupleski in the

1980s and discussed in his book, Mastering Customer Value
Management.
Target Audience

Manufacturer/Distributor

When the sales target is not the end user, but a manufacturer or
distributor of a product, the most important factor is conveying
superiority of one product over another. There may be other factors
besides price and quality that would affect a customer's decision and
communicating those as well is essential
 Customer Value: The 4 essential levels of
value propositions

1. Primary Value Proposition

2. Prospect-Level Value Proposition
3. Product-Level Value Proposition  
4. Process-Level Value Proposition
5. https://marketingexperiments.com/value-proposition/levels-of-
value-propositions
Types of Customer Value propositions

1. Functional Value

2. Emotional Value

3. Economic Value

4. Symbolic value

5. End value
 Business Marketing Environment

The external environment can be defined as PEST and SPICC

Model of business to-business marketing as a matching process
The macro-environment: Political/legal, Economic/demographic, Social/cultural,
Technical/physical (PEST)
The micro-environment: Suppliers, Publics, Intermediaries, Customers and markets,
Competition (SPICC)
8Ss and 8Ps
Strategy, Structure, Systems, Skills, Shared values (culture), Staffing, Style (corporate image),
Sustainable competitive advantage – the eight Ss.
The eight Ss back up the marketing mix:
Product, Price, Place, Promotion, People, Processes, Profit, Physical evidence – the eight Ps.
 Organisational buying behavior and Decision
Process

Organizational buying is often supposed to be more rational and less

emotional than consumer purchasing behavior.

The decision-making process often becomes formalized, with specific

areas of interest being expressed by members of the decision-making
unit (DMU), and with roles and responsibilities being shared.
 Environmental Influence on Buying
Behaviour

• Culture
• Ethical
• Political/Legal
• Economic
• Technological
• Physical
Classification of buying organisations

• Business and commercial organizations

• Reseller organisations
• Governmental Organisations
• Institutional Organisation
BuyGrid Framework
 Buyer Seller Relationship In Business Marketing

Establishing a good relationship between the buyer and seller is a most difficult
task in the concept of business marketing theory. Making the seller fulfill all your
demands and getting the maximum number of buyers is the toughest job both of
them have to encounter.
Types of Buyer – Seller Relationships

• Transactional (distant) relationship.

• Value – added (continuing) relationship.
• Partnering / Collaborative (close) relationship.
• https://blog.oureducation.in/buyer-seller-relationship-in-
business-marketing/#:~:text=Types%20of%20Buyer
%20%E2%80%93%20Seller%20Relationships,%2F%20Collaborative
%20(close)%20relationship.
Carter's 10 Cs of Supplier Evaluation

• Competency.
• Capacity.
• Commitment.
• Control.
• Cash.
• Cost.
• Consistency.
• Culture.
• Clean.
• Communication. https://www.toolshero.com/strategy/carters-10-cs-of-supplier-
evaluation/
This model was first published in the Journal of Purchasing and Supply Management, Carter, R., 'The Seven C's of Supplier Evaluation,' 44-46, ©
Elsevier (1995). Model reprinted with kind permission of Dr Ray Carter.
Factors influencing choice of supplier

• Price
• Location and transport costs
• Lead time
• Product quality
• Reliability
• Reputation