B2B Marketing


N's spirit Basic MBA > B2B Marketing 1

B2B Marketing 1

B2B marketing is marketing activities not for consumers (B2C) but for corporations or organizations. B2B marketing is totally different from B2C marketing in terms of marketing process.


Difference between B2B and B2C marketing


B2B B2C
Segmentation Often divided by geographic, organizational factors or purchasing history of customers Often divided by population movement, age, sex or occupation
Target Narrow Wide and usually end users
Time of buying decision Relatively long Relatively short
Key buying factor Benefit especially profit Benefit or visceral factors
DMU Relatively many (several DMU in a company) A few (1 or 2 persons)
Buying volume Relatively many or expensive trade A few
Products Specialized products or solutions Commodity
Price Cost-benefit performance is most important. Cost-benefit performance is most important.
Channel Direct trade Long sales channel from manufacturers to users
Promotion Direct appeal Some advertisements



Key persons in B2B sales

As mentioned above, there are many DMUs in B2B trade. (DMU means Decision Making Unit). Besides, each DMU has each buying criteria, for example, product development engineers are usually interested in technologies, procurement persons are usually interested in the cost and production persons are usually interested in quality and delivery term.

In case that many organizations are involved in a project, organizations have various relationships among them so sales persons need to recognize them correctly. For example, in a construction project, owner, architects, general constructors, sub constructors, plumbing fixture providers and building material providers are involved into the project. In that case, sales persons will need to make relationship map between all related organizations and persons and assess who is the key person to get this project.


Not only products but also solutions are needed in B2B

In B2B marketing, products and services cannot be often differentiated so comprehensive solutions are often adopted. It means that a system which can solve customer's issues is needed with products and services.


Step to build up B2B marketing strategy

In B2B marketing, environmental analysis, segmentation, positioning and targeting are useful like B2C marketing. Above all, it is important to recognize who is DMU and how to persuade DMU to buy products.


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Marketing
Marketing Process
Segmentation
Positioning
Marketing Mix (4P)
Product Strategy
Pricing Strategy 1
Pricing Strategy 2
Pricing Strategy 3
Pricing Strategy 4
Price Strategy for Service
Innovation of Pricing Model
Channel Strategy
Promotion Strategy
Prevention of Competitor's Imitation
Brand Strategy
B2B Marketing 1
B2B Marketing 2
Estimation of Market Size
Estimation of Market Size (ATAR model)
Estimation of Market Size (Logistic curve)
Estimation of Market Size(BASS model)
Stage Gate System


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N's spirit Basic MBA > B2B Marketing 1

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