B2B marketing


N's spirit Basic MBA > B2B marketing 2

B2B marketing 2

In this page, some tools and two basic strategies will be explained.


Chance Map

Change Map is a graph showing where business opportunities are. It makes us visually recognize tempting market.

Chance Map


Horizontal line shows market size and vertical line shows market share, then area means sales volume or value. This map makes us find which large market is and which potential market is.


Segmentation

In B2C marketing, age, sex, occupation, hobby and living place are normally used as segmentation. In B2B marketing, however, behavioral feature on business and degree of sophistication are widely used as segmentation.

For example, as behavioral feature, there are scale of business, negotiation power and frequency of contact. As degree of sophistication, there are degree of requirement and ratio of sales of luxury products.


Formula of sales

In B2B marketing, number of customers multiplied by average customer spend is usually used as formula of sales. However, in B2C marketing, formula of sales by each sales process is more important.

The following formula is an example of it.

Sales
= Sales of industry * company's share
= Sales of industry * cover ratio of trade * winning percentage
= Sales of industry * cover ratio of dealer * in-store share
= Sales of industry * cover ratio * recognition of customers * trial ratio * repeat ratio


Standardization Strategy and Customization Strategy

B2B marketing has two main strategies which are Standardization Strategy and customization Strategy.

Standardization Strategy
A company adopting this strategy sells large quantity of products used by many customers at low price. It is important utilize scale economics and experience effect. Therefore, products traded continually and at large quantity, on Maturity of PLC or daily commodity is suitable for Standardization Strategy

In this strategy, cover ratio of sales channel and strong brand with advertisements are more important. Besides, prior investment to get de-facto standard or to standardize operation is also needed.

Customization Strategy
A company adopting this strategy sells customized products for each customer and obtains higher profit than competitors. It is more important to provide products which meets specific customer's demand. Therefore, products sold on irregular basis and at a few quantity, or products having KBF except for price is suitable for Customization Strategy.

In this strategy, getting specific customer's requirement thorough direct approach and generating word of mouth are more important. Besides prior investment to build long relationship to customers and make advanced products and technologies is also needed.


Comparison 4P of each strategy
Standardization Strategy Customization Strategy
Product Standardized product or semi-customized product Customized product
Price Standard list price Special price
Place Some dealers and representatives Direct approach
Promotion Mass advertisements Introduction from existing customers and word of mouse


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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 2

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