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strategy
build your brand
grow your sales
execution
results
Business to Business
Marketing 101
Jainita Khatri
[email protected]
083 414 9796
@PranaBusCons
Prana Business Consulting
A customer relationship
management and
marketing organization.
Good marketing brings your
customers to you. It
creates demand and
awareness for your product
or service.
Building a strategic
partnership with customers
is all about aligning and
understanding goals, to
ensure a win-win scenario.
Translating ideas into
action. Driving consumer
delight through lively and
engaging media.
Why are we in business?
Core to all successful business is
Sales
Profit
Mastering the relationship
Market Share
Innovation
Competitive Advantage
B2B Marketing Defined
• Is the marketing of products to businesses or
other organisations
– for use in production of goods,
– for use in general business operations
• (e.g. office supplies)
– for resale to other consumers
• (e.g. wholesaler selling to retailer)
B2B vs. B2C Marketing
Seller
Seller
Supply
Chain
Buyer
Buyer
Eg.
•Eskom and City of Johannesburg
•Google and “Joe’s B&B”
•Coca-Cola and Pick n Pay
Eg.
•Eskom,City of Johannesburg and Joe Public
•Intel and Microsoft and you
•Coca-Cola and Pick n Pay and you
B2B vs. B2C
Market Characteristics
Product Characteristics
B2B
B2C
Geographically Concentrated
Geographically Dispersed
Relatively few buyers
Mass market
Technically complex
Standard
Customized
Service characteristics
Service focus
Timely Availability
Quick response
Less important but this is changing
Buying Behaviour
Involvement from various functional
areas
Involvement of family members
(personal)
Purchase decisions are performance
based and rational
Purchase decisions are based on
physiological /social/psychological
needs
Stable interpersonal relationships
Non personal relationship (but
emotional connection)
B2B vs. B2C
B2B
B2C
More direct
Indirect
Fewer intermediaries
Multiple layers
Promotional Characteristics
Personal selling
Mass media
Price characteristics
Competitive bidding
List prices or RSP
Channel Characteristics
Negotiated prices
B2B Strategies
• Differ based on the industry
• Are usually unique to the buyer and seller
concerned
• Are complex in nature
• In larger companies are influenced by the
principles of Customer Relationship
Management
B2B Markets
Resellers
Manufacturers
B2B
Markets
Government
Institutions
Characteristics of Business Markets
• Fewer, larger buyers
• Close supplier-customer
relationships
• Professional purchasing
• Many buying
influencers
•
•
•
•
•
Multiple sales calls
Derived demand
Inelastic demand
Fluctuating demand
Geographically
concentrated buyers
• Direct purchasing
B2B Markets
Resellers
Manufacturers
B2B
Markets
Government
Institutions
Key Account Management
• Using B2B marketing and CRM techniques to
manage customer needs, develop long term
mutually beneficial solutions using a
combination of hard and soft skills
Top Business Marketing Challenges
• Expand understanding of customer needs
• Competing globally as China and India reshape
markets
• Mastering analytical tools and improve quantitative
skills
• Reinstating innovation as an engine of growth
• Creating new organizational models and linkages
• Managing B2B in an increasingly technologically
driven world
Skillset in B2B Marketing
Hard Skills
Soft Skills
• Technical knowledge
• Business knowledge
• Decision making ability
• Clear Communication
• Presentation skills
• Negotiation
• Likeability
• Persuasion
• Ability to build trust
• Conflict resolution
• Tolerance for
aggressive behaviour
and other buyer tactics
What is Organizational Buying?
• Refers to the decision-making process by which
formal organizations establish the need for
purchased products and services, and identify,
evaluate, and choose among alternative brands
and suppliers.
Factors affecting the buying process
Organisational
Culture
Buying
Process
Buying Situation
Buying Centre
Organisational Culture
•
•
•
•
•
•
Straight
Owner dominant
Progressive
Collaborative
Budget driven
Innovative culture
Buying Situations
New Buy
Buying
Situations
Straight buy
Modified Buy
The Buying Center
Initiators
Users
Influencers
Deciders
Approvers
Buyers
Gatekeepers
Sales Strategies
Small Sellers
Key Buying
Influencers
Large Sellers
Multilevel
In-depth
Selling
Establishing Corporate Trust
and Credibility
Expertise
Trustworthiness
Likeability
Trust Dimensions
Transparent
Cooperating
Design
Product/Service
Quality
Product
Comparison
Incentives
Supply Chain
Partnering
Pervasive Advocacy
Factors Affecting
Buyer-Supplier Relationships
Availability of
alternatives
Complexity of
supply
Importance of
supply
Supply market
dynamism
B2B framework for FMCG brands
Product
Price
Consumer
Demand
Personal
Selling
Customer
Service
CRM
Company
Policies
Company
Culture
Evaluative
Criteria
Communi
cation
Feedback
Loop
Customer
Support
Relationship
Non subjective
Tangible
Elements
Trust
Intangible
Elements
Subjective
Tangible
Elements
B2B framework for FMCG brands
Product
Company
Policies
Price
Company
Culture
Personal
Selling
Customer
Service
Customer
Support
Communi
cation
CRM
Feedback
Loop
Owned by
seller
Consumer
Demand
Owned by
end
consumer
Evaluative
Criteria
Owned by
buyer
Two routes to the B2B marriage
Two Key Components
Communication
Trust
Happy relationship
Business is about action
Framework and
ideology
Sales
Targets
Market
Readiness
Resource
“There is only one profit centre, and
that is the customer” – Peter Drucker
Jainita Khatri
Mobile: +27 (0) 83 414 9796
Email: [email protected]
www.pranabusinessconsulting.com
Twitter ID @PranaBusCons