BUSINESS
MARKETING
IDENTIFYING KEY MEMBERS
OF BUYING CENTRE :
Sales / Marketing Persons must identify
important members of buying centre.
Buying Center consists of individual and
groups who take part in buying decision
making process, have common objectives &
share common risks. It is also called
purchase committee, buying committee or
decision making unit.
Members of buying centre are
a. Technical persons – Represent design,
production/operations, maintenance, Q.C.
B2B Marketing
mix
B2B MARKETING MIX
The basic orientation of customers differs in
B2B and B2C marketing. While in the case of
B2C, the buyer’s purchase decisions are
motivated by short-term benefits; in the case
of B2B, the purchase decisions are influenced
by long-term benefits. The B2C buyers mostly
emphasize upon the price while choosing to
purchase; same product wherever available
for the lowest price would attract them. But
industrial buyers look for value in the long-
run. They emphasize not only on the price,
rather the quality, service and economy of
the offering in the long-run. Now let’s see
how the differences in customers’ orientation
impact the B2B marketing mix.
PRODUCT :
The product itself is different here. In
the case of B2C marketing, the
customer is offered final good or service
suitable for consumption. However, in
the case of B2B marketing, the product
may be in the form of a raw product,
semi-finished product, chemicals or
anything that the buying firm needs for
its production process or operations.
The products are usually technically
complex and are valued for the purpose
they solve for the buyer.
PRICE :
The product and the customers differ in
industrial marketing, so the pricing would
also differ. Unlike in B2C marketing where
the prices are fixed and are printed
explicitly on the product’s packaging, the
prices in case of B2B marketing are mostly
negotiated. Usually, the sellers are asked
to supply their quotes and the best quote
offering the product at the lowest price is
accepted. The industrial sellers can,
however, earn a competitive edge in pricing
by utilizing not only the economies of scale
but also the economies of scope.
PROMOTION :
As far as promotion is concerned, the
traditional promotional tools like advertising
and publicity don’t work here. The sellers
usually adopt sales promotion techniques. The
products are launched at trade fairs and
exhibitions and various promotional schemes
are offered to hike sales. However, relationship
building is the key to promotion in case of B2B
marketing. It mostly takes lot of time to
develop trust in such transactions and
therefore it is always better to retain
customers, rather than neglecting them to
attract the new ones. Word-of-mouth prevails
strongly in industrial buying.
PLACE :
The physical distribution also adopts a
different approach here. In B2C marketing, the
product usually passes through the layers of
intermediaries before it reaches final
consumers. Multi-layered distribution system
prevails in case of B2C marketing. But here
the sellers have basically two options
regarding distribution; either to distribute
products through their own sales
representatives or to hire an independent
industrial distributor firm for the purpose. The
supply chains are short in B2B marketing and
the buyers are generally geographically
concentrated.
Introductio Growth Maturity Decline
n
Characteristi
cs
Sales Low Rapidly Peak sales Declining
rising
Cost(per High Average Low Low
customer)
Profits Negative Rising High Declining
Customers Innovators Early Middle Majority Laggards
Adopters
Competitors Few Growing Stable Declining
Beginning to
decline
Marketing Create Maximize • Maximize • Reduce
Objectives product market profits expenditur
awareness share • Defend e
and trial Market Share • Hike the
brand
Introduction Growth Maturity Decline
Strategies
Product Basic product Product Diversify Phase out
extensions brand weak
Service, products
warranty
Price Charge cost- Penetration Price to Cut prices
plus price match or best
competitors
Distribution Build selective Build Build more Go selective:
distribution intensive intensive phase out
distribution distribution unprofitable
outlets
Communica Build product Build Differentiate Reduce to
tion awareness and awareness and minimal level
trial among and interest encourage needed to
early adopters in mass brand retain
& dealers market switching customers