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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