Introduction to B2B Marketing
Welcome to the Course
Expectations

What do you expect from the course?
Course Assessment and Schedule
Assessment
Component
Weightage
%
Quiz-1
10
Quiz 2
10
Quiz 3
10
Group Assignment 1
15
Schedule
After 8th, 16th, and
& 22nd sessions
CLO
Overall
Weightage
%
Number
30
1,2,4
Continuous
(Case/Article
Presentations)
2,4
30
Group Assignment 2
15
End-Term Exam
40
To be given in 14th
session & Submission
by 21st session
As per Exam. Office
schedule
2,3
40
1,2,3
Group formation guidelines
Class Coordinator
 Total number of groups: 10

Key aspects of B2B Marketing
E-commerce
/Technology
side
Purchase side
B2B Marketing
Supply Chain
Side
Sales side
Sales Side of B2B Marketing
Role of personal selling in b2b market
 Relationship building
 Team selling approach
 Key/Major account management

Purchase Side of B2B Marketing
Purchase process
 Buying situations
 Buying center
 Roles of buying center in purchase decision
 Toolkit for purchase managers

E-commerce Side of B2B Marketing
Role of e-commerce in purchasing
 E-commerce business models
 Reverse auctions
 Cloud computing in b2b firms
 Online selling to business customers

Supply-chain Side of B2B Marketing
Supply-chain integration
 Role of technology in integration
 Quality management in supply-chain

Outcome of B2B Marketing Course
Types of channel
Channel structure & Design
Role of channel in service
Distribution
Strategy
Pricing Methods
Value based pricing
Product
Strategy
Effective Marketing
Strategy
Branding of b2b Products
Product Innovation
Types of Products
Customization
Services
Promotion
Strategy
Pricing
Strategy
Advertising & Sales Promotion
Trade Show
Personal selling
Social media
Key Jobs in B2B Marketing
Sales manager
 Purchase manager
 Marketing manager
 Key account manager
 System integrator/consultant (e.g. ERP)
 Brand manager
 Supply chain manager

What is B2B Marketing






It is a marketing of products/services to business
customers for:
Incorporation – e.g. components or raw materials
(Intel to HP)
Use – e.g. Packaging system, Equipment (GE to
Zydus)
Resale – e.g. Air compressor (Atlas distributor to
Amul India)
Consumption – e.g. office supplies or consulting
service (BCG to Tata)
Key factors: Nature of customer, and intended use
of the product.
Why B2B Marketing is important?

B2C is everywhere.
Power
Steering
System
Johnson Control
Dow Chemicals
Styrene
B2B
ABS
Plastic
B2B
Dash
Board
B2C
Dealer
B2B
Individuals/
Households
B2B
B2B
Honda
(Mfg)
B2B
DuPont
Car
Buyer
B2B
B2B
Production
System
Fleet Owners
Travelers
e.g. Ola, Uber
Car
Buyer
Top B2B Firms/brands
Types of Business Customers
Commercial
Firms
Governments
Institutions
Manufacturers, Construction firms
Wholesalers, Retailers etc.
Central
State
Government Government
Municipal Corporation
Educational Healthcare Org.
Institutes
Nonprofits Org.
Type of Business Customers: Commercial
Enterprises
Three categories of Commercial Customers:
• Users
• OEMs
• Dealers and distributors
Users

Users purchase industrial products or
services to produce other goods or services
that are, in turn, sold in the business or
consumer markets.

Example: Tata Motors buys machines (e.g.
Production system or equipment) to produce
automobiles that are sold to consumers and
businesses.

Tata Motors is a user.
OEMs
•
Original Equipment Manufacturers
•
Organizations that buy business goods and
incorporate them into the products that they
produce for eventual sale to other producers or
to consumers.
•
Honda is OEM while buying tires from CEAT
•
HP is OEM while buying microprocessor from
Intel
B2B v/s B2C Marketing
Sr. No.
Criteria
Consumer
Marketing
Business Marketing
1
Customers
Numerous, Widely
dispersed geographically
e.g. Medicine buyers
Few, Concentrated
e.g. Pharmaceutical
companies
2
Demand
Primary
e.g. 2 wheelers buyers
Derived demand
e.g. Tires manufacturers
3
Buying behavior
Simple
(Individual/household is
involved)
e.g. buying a car
Complex (Professional
buyers)
e.g. Buying an ERP
system
4
Buyer/Seller
Relationships
Very little
Very close, long-term
relationships.
Interact regularly
5
Product
Standardize
Complex,Technical &
Buying several items from service is very
D’Mart.
important e.g. Aircompressor
B2B v/s B2C Marketing
Sr. No.
Criteria
Consumer
Marketing
Business Marketing
6
Price
Fixed price, e.g. MRP
Negotiated, Bidding
process,
List price for standard
products e.g. office
supplies
7
Distribution
Mostly indirect, several
intermediaries are
involved
Mostly direct, few
intermediaries are
involved
8
Promotion
Heavy, Mass advertising
Selective, Primary
personal selling
B2C and B2B
The Consumer Market (B2C) and the Business Market (B2B) at
Wipro
Infotech
B2C
B2B
Customers:
Individuals
&
Households
Global firms
Large corporations
Small & Medium
sized businesses
Selected
Products
:
PCs
Printers
Laptops
Simple Service
PCs
Enterprise Storage
Servers
Complex Service
Offerings
Institutions
Healthcare
Education
Government
State
Central
What Are Business Products?
•
Used to manufacture
other products
•
Become part of another product Key is the
•
Aid in the normal operations of
an organization
•
Are acquired for resale
without change in form
•
A product purchased for personal
use is considered a consumer good
product’s
intended
use
Classifying Goods for the Business Market
Classify industrial goods by
asking the following:
How does the good or
service enter the
production process?
Source: Adapted from Philip
Kotler, Marketing Management:
Analysis, Planning, and Control,
4th ed. (Englewood Cliffs, N.J.:
Prentice-Hall, 1980), p. 172,
with permission of PrenticeHall, Inc.
Why Goods Classification?
Entering Goods
Foundation Goods
Facilitating Goods
Mostly Standardize
e.g. Coal, oil, steel,
tires etc.
Mostly Customized
e.g. production, packaging
systems, elevators, buildings,
JCB etc.
Mostly Standardize except
services
e.g. Lubricants, screw, paints,
spanners etc.
Purchase in large
quantities
Competitive price
Reliable delivery
Product is technical and
important
Service capability is very
critical
Intensive distribution is
required to provide goods.
E-procurement is used.
Efficient ordering system
If customized,
Personal selling & CRM
is important
Focus on advancing
customer’s competitive
position.
Direct channel is required,
Personal selling is crucial,
Less price sensitivity,
Quality is more important,
Product’s technical
knowledge is important
Catalogue advertising, and
less personal selling,
Personal selling for channel
management,
Price is very competitive
(commodity),
Broad product assortment
and fast delivery
Business Market Demand Characteristics
Derived demand
 Fluctuating demand
 Stimulating demand

Role of sales person in B2B Marketing
Business
Marketing
Firm (Mfg.)
•
•
•
Internal
Linkage
Sales
Person
External
Linkage
Customer
Organizati
on
Inter-functional Coordination within Organization.
Information sharing with customer and marketing firm.
Integration of manufacturing operation with purchasing
requirements of customers.
Thank You
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