Download direct marketing

BUSINESS TO BUSINESS
MARKETING
Ing. Lucia Bartková, PhD.
PRICE IN B2B
MARKETING
PRICE
•as equivalent, has to be paid for product
•reward to company for product or service
supply
•monetary expression of product value
•instrument for value measuring and
comparison
PRICE MIX COMPONENTS
•price setting process
•price actualization
•discounts
•price strategies
•payment tools
•payment methods
•price differentiations
PRICE AS…
•rent
•school fee
•charge
•interest
•road tool
•insurance
•transport charge
•royalty
•salary
•deposit
•tax
•membership fee
•commission
FACTORS OF PRICE
DECISION
1.internal factors
-marketing goals
-costs
-marketing mix strategy
-organization of price setting
FACTORS OF PRICE
DECISION
2.external factors
-market and demand character
-competition
-value perceived by customer
-another factors
PRICE ADAPTATION
•geographic aspect
•price discounts
•advertising pricing
•discriminatory pricing
•marketing mix pricing
GEOGRAPHIC ASPECT
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distant locality, finance shortage…
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barter
compensation deal
redeem (re-purchase)
counter-claim
PRICE DISCOUNTS
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cash discounts given to everybody
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cash discounts
bulk discounts
functional discounts
charge deduction
ADVERTISING PRICING
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early purchase support
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free service, guaranty extension
payment with low interest running
psychological price
DISCRIMINATORY PRICING
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according to the segment
according to the product variant
according to the time
according to the place
MARKETING MIX PRICING
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price of special supplements
fixed products
packages
secondary product
capitation
PAYMENT TOOLS
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documentary credit
documentary collection
clear payment
bill of exchange
cheque
advance payment
leasing payment
e-commerce
bank guaranty
bank loan
supply loan
factoring, forfeiting
PRICE SPECIFICS
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bigger sensibility to price
bigger amount of money
individual price calculation
price as result of compromise
price as result of relationships
price set by competition, tender
discounts providing
many payment tools
price is not always competing tool
price according to the law
state regulations
DISTRIBUTION
IN THE B2B MARKETING
DISTRIBUTION
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distribution = all activities allowing transfer of
physical and dispositional right for product from
one subject to another
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distribution channels = groups of independent
organizations participate in accessing products
for another usage or end consumption
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middlemen = members of distribution channel
helping producers to search and obtain
customers and to realize transactions
ARGUMENTS FOR USING
DISTRIBUTION CHANNELS
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economical advantages (spanning of distance,
product completion)
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solution of weaknesses in organization (lack of
finance, lack of staff, lack of know-how,
enterprise risk elimination)
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customers’ expectations fulfilling
FUNCTIONS OF DISTRIBUTION
CHANNEL
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market research
marketing communication
contact obtaining
negotiations
range of goods transformation
physical distribution
risk acceptance
financing
DISTRIBUTION CHANNEL
CREATION ON B2C MARKET
producer
consumer
producer
producer
wholesale
producer
wholesale
middleman
retail
consumer
retail
consumer
retail
consumer
TRENDS IN WHOLESALE
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agreement with producer about expected
functions of wholesaler
information obtaining about producer by visit,
conference, sales exhibition
fulfilling obligations in payment discipline and in
information providing towards producer
searching and offering services to customers
remaining customer value
TRENDS IN RETAIL
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new forms of retail and its combination
shorter life-cycle of some forms of retail
fast increase retail without selling places
increase of competition among the same
and among different types of retail
wide-range of goods offering or specialty
retailer ???
TRENDS IN RETAIL
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shopping centers considered to be suite for
“purchase under one roof” =>
services as coffee-bars, tea-houses, children
corners, bookshops, cinemas, restaurants
distributional channels are better and more
professional managed
IT as important competing tool
big retailers with strong brands expansion from
foreign countries
DISTRIBUTION CHANNEL
CREATION ON B2B MARKET
B2B
consumer
producer
B2B
distributor
B2B
consumer
producer
sales
department
B2B
distributor
B2B
consumer
producer
sales
agent
B2B
distributor
B2B
consumer
producer
SUBJECT OF DISTRIBUTION
CHANNEL ON B2B MARKET
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producer = producing and delivering product
sales department = organization division of
producer
sales agent = individual company
b2b distributor = businessman with industrial
goods and raw materials with a network of b2b
customers
b2b consumer = company buying raw materials
and semi-products for another production or
buying product for own consumption
FACTORS OF DISTRIBUTION
CHANNEL SELECTION
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purchase frequency
product differentiation
value of purchase unit
credit of brand
purchase bulk
technical complexity of product
investments to storehouses
consumers’ arrangement
type of market (b2b, b2c)
size of market
competition
consumers with specific requests
DISTRIBUTION CHANNELS
ORGANIZATION
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traditional
vertical
close
administrative
contractual
horizontal
multi-channel
DISTRIBUTION CHANNELS
ORGANIZATION
1. traditional
- individual producer, wholesaler and
retailer
- each of them try to maximize own profit
- each of them works independently and
don’t have dominant control in system
DISTRIBUTION CHANNELS
ORGANIZATION
2.
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vertical
producer, wholesaler and retailer as one
system, one is dominant (e. g. owner)
close (production and distribution in one owner
unit)
administrative (size and power of one subject in
system)
contractual
DISTRIBUTION CHANNELS
ORGANIZATION
3. horizontal
- two or more organizations connection
- they don’t have enough capital, know-how
or production capacities for individual
business
- permanent or temporary cooperation
DISTRIBUTION CHANNELS
ORGANIZATION
4. multi-channel
- combination of vertical and horizontal
distribution channels
- better market covering
- lower distributional costs
- comfortable purchase for customers
- more efficient selling
LOGISTIC
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physical distribution
orders processing
storage
inventories managing
carriage (speed, availability, safety,
capacity, frequency, costs)
CARRIAGE
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truck, air, railway, ship, sea
carriage by pipeline
combined carriage
piggyback (railway and truck)
fishyback (ship and truck)
trainship (train and ship)
airtruck (air and truck)
COVERING
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railway wagons
oil-ducts, gas-ducts,
pipelines
tanks, cisterns
barrels
pallets
boxes
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ferryboats
containers
electrical
networks
by air
technical
progress
INCOTERMS
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international trade
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E (removal) – EXW
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F (main carriage not paid) – FCA, FAS, FOB
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C (main carriage paid) – CFR, CIF, CPT, CIP
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D (arrival) – DAF, DES, DEQ, DDU, DDP
SPECIFICS OF DISTRIBUTION
IN B2B MARKETING
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more direct and shorter distributional channels
specific distributional channels
higher demand for capacity and type of
carriage
higher demand for territorial covering by
distributor
untraditional covering
direct sale require higher demands for selling
staff
PROMOTION
IN THE B2B MARKETING
MARKETING
COMMUNICATION
1. informing about products, their attributes,
benefits, quality, value, usage, utility
2. listening, receiving suggestions and
request of consumers
MARKETING
COMMUNICATION MIX
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integrated and controlled system of
communication tools and methods for
presentation of organization and its
products to consumers
advertising, sales promotion, public
relations, personal selling and direct
marketing
ADVERTISING
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any paid form of impersonal presentation and
promotion of ideas, goods or services to target
market
advertising strategy:
advertising goals setting
advertising message creation
media plan
budget for advertising plan realization
advertising effectiveness measuring
ADVERTISING STRATEGY
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advertising goals setting
informative advertising
persuasive advertising
reminding advertising
supporting advertising
ADVERTISING STRATEGY
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advertising message creation
according to the goals
effort to attract consumers’ interest
product attributes, features, usage
presentation
profit achieving or costs saving for
consumer
end b2b consumer or retailer
ADVERTISING STRATEGY
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media plan
reach, frequency, effect, advantages,
weaknesses of every medium
newspaper, journals, TV, radio, internet,
address mail, bulletins, catalogues,
brochure, folders, telephone, 3D items,
untraditional forms (trucks, hot-air
balloons, airships, transparent hung after
airplane)
ADVERTISING STRATEGY
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budget for advertising plan realization
goal of advertising campaign
product life-cycle stage
market share
competition and its communication
advertising frequency
substitute product influence
ADVERTISING STRATEGY
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advertising effectiveness measuring
advertising effect on informedness,
knowledge or preferences
advertising effect in relation to expenses
and achieved results or to goals fulfilling
marketing research
SALES PROMOTION
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package of motivational tools with shortterm character created for faster of bigger
purchase stimulation
sales promotion for customers
sales promotion for trade systems
other forms of sales promotion
SALES PROMOTION
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sales promotion for customers
samples
coupons
discounts
presents
free trying of goods
product guarantees
product exhibiting and demonstration
SALES PROMOTION
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sales promotion for trade systems
discount
charge deduction
free goods
SALES PROMOTION
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other forms of sales promotion
trade fairs and exhibitions
selling competitions
advertising presents
PUBLIC RELATIONS
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communication focused on forming of
attitudes towards organization
goal is to create positive relationships of
customer to organization and its products
programs focused on organization
presentation, defense of organization's
image or image of products
PUBLIC RELATIONS
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main activities:
relations with press to positive inform about
organization, results, intensions
product publicity
organizational communication (internal &
external)
lobbing with government
consulting for management
PUBLIC RELATIONS
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main tools:
publications (annual reports, brochures,
articles, own newspapers and journals,
books, etc.)
events (conferences, seminars, trips,
exhibitions, competitions, anniversary
celebrations, etc.)
sponsoring
PUBLIC RELATIONS
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main tools:
press (electronic, printed; news, speech,
interviews, professional articles, meetings,
analysis, etc.)
public services (e. g. environment
protection)
internal PR (meetings, company-journals,
reports, notice-boards, circular letters)
PUBLIC RELATIONS
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PR goals:
building of awareness about
organization
building of credibility of organization
selling staff or representatives
stimulation
decrease of promotional costs
PERSONAL SELLING
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the most used type of marketing
communication on b2b market
“one-to-one” communication with one or
more potential buyers focused on product
presentation, drawing an attention,
answering the questions and order
acquirement
PERSONAL SELLING
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main goals:
to rouse excitement and interest on market
before start of advertisement
to built base of critical customers
to built relationships with customers
to change satisfied customer into promoters
and advocates of organization
to affect persons with some influence in favor of
organization (doctors, teachers,…)
to determine product positioning
ROLES AND FUNCTIONS
OF SELLER
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deliveryman (of information or product)
orders receiver (order completing)
missioner (commerce establishing, trust
excitation)
technician (technical mechanism seller)
consultant
demand creator
problem solutionist
TASKS OF SELLER
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to search new customers and new business
opportunities
to give his time to potential and existing consumers
to communicate with consumers and to provide
information for them
to sell products
to provide services, consultations, help,…
to collect information by market research, market
analysis, selling analysis
to lay out products, to evaluate consumers, to set
delivery order, delivery conditions specification,…
SELLING NEGOTIATION
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personally or by telephone / internet
with group of consumers
as a sellers’ team with group of
consumers
organization of selling conferences
(presentation)
organization of selling seminars
(presentation and education)
PERSONAL SELLIG PROCES
7. care after selling
6. business closing
5. objections handling
4. presentation and demonstration
3. contact establishment
2. preparation for contact establishment
1. searching and appraisal
DIRECT MARKETING
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interactive marketing system using one or more
media to reach measurable response from
customers or to realize a transaction from
anywhere
the core is to create database of customers
marketing of direct supply or marketing of direct
relations
long-time relationships with customers
DIRECT MARKETING
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advantages for customer:
comfort purchase in own organization
time saving, visit of many shops
comparison of each purchase advantage
obtaining information without meetings with
sellers
possibility to call for free numbers
goods delivering by mail
DIRECT MARKETING
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advantages for seller:
list of customers from any target group
obtaining
long-time relations with customers
message timing
more addressed promotional materials
usage of secret selling and communication
strategies
measuring of responses to the campaign
DIRECT MARKETING
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direct mail
letters, hand-outs, bulletins, offering
materials, CD with offers or with
advertising programs, presents, samples
lettershop – mass mail processing
direct distribution – addressless mailing
catalogue marketing
DIRECT MARKETING
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telemarketing (selling dialogue through
telephone)
faxmailing
teleshopping
direct marketing in radio, TV, newspapers
e-commerce
order automat
THANK YOU FOR YOUR
ATTENTION