BUSINESS TO BUSINESS MARKETING

Code:AQ2

General Instructions:
The Student should submit this assignment in the handwritten form (not in the typed
format)
The Student should submit this assignment within the time specified by the exam dept
The student should only use the Rule sheet papers for answering the questions.
The student should attach this assignment paper with the answered papers.
Failure to comply with the above Four instructions would lead to rejection of assignment.
Specific Instructions:
There are four Questions in this assignment. The student should answer all the four
questions. Marks allotted 100.
Each Question carries equal marks (25 marks) unless specified explicitly.
Questions:
1. Discuss six ways of segmenting B2B markets
2. Discuss the difference between business to business markets and consumer markets
3. Explain FIVE factors that affect the success of a new industrial product in the market
4. Discuss the unique characteristics of B2B product promotion?

ANSWERS
1)
i. Prospect Lists
While most companies are already weeding out their prospects to place on email lists or drip
campaigns, we can take this one step further. With a tool like marketing automation, each of wer
sales reps can create their own list of their highest scoring prospects. These lists can be used to
keep in touch with and distribute content to the prospects who are most likely to close. We can
also segment by stage of the buying cycle, and tailor content appropriately.
ii. Event Attendees
Segmentation can be used both before and after events like webinars or trade shows. For
webinars, add attendees to a list once theyve signed up. We can use this list to communicate
anything from schedule changes to additional content attendees may be interested in, based on
the topics covered in the webinar. Trade shows are another great opportunity for segmentation.

Sorting leads generated during a trade show onto a trade show list gives we the opportunity to
follow up promptly with any post-event information.
iii. Product Lines
If were a B2B or B2C company with multiple product lines, segmentation could be a powerful
tool for we. Chances are, prospects and potential customers are more interested in one of wer
products than the others. Once weve determined their interest (perhaps if they request a demo,
visit pages on wer site for a certain product, do a search for wer product, view a pricing page, or
make a purchase), place them on a list specific to that particular product. That way, we can send
them the most relevant information for their needs, and may even be able to upsell them on
another product later.
iv. Partners
If wer company has partners, we can easily segment them onto their own list. Use this to send
special newsletters or emails with pertinent information that wer partners wouldnt get from a
general newsletter. These more targeted emails can help we cultivate a more meaningful
relationship with wer partner network.
v. Lost Opportunities
Just because a prospect didnt turn into a closed deal, that doesnt mean that they should
completely fall off the radar. Cold leads can still have value when they reach the point in the
sales cycle where theyre ready to buy. If we have any lost opportunities, place them on a list so
that we can drip marketing content to them over time. This keeps wer company and product topof-mind when theyre ready to reenter the sales funnel.
vi. More Granular Lists
We can also use segmentation to make some smaller, more specific lists. Do we want a list of
people who have requested product demos? What about a list for those who are the decision
makers at their companies, who live in certain regions, or who have a score above 100? Creating
a list for these specific segments will allow we to target wer communications on a more granular
level. For example, adding a little local flavor to wer emails can make recipients feel like were
connecting with them on a more personal level.

2) B2B versus Consumer Marketing:

Consumer marketing, or business-to-consumer (B2C) marketing, sales are made to individuals
who are the final decision makers, though they may be influenced by family members or friends.
A business marketing, or business-to-business (B2B) marketing, sale is made to a business or
firm.

Buyer Behavior
Whereas emotional factors play a large role in B2C purchases, B2B purchasing decisions tend to
be less emotional and more task-oriented than consumer buyer markets. Business customers
often look for specific product attributes such as economy in cost and use, productivity, and
quality. Additionally, B2B purchasers generally spend more money, as the buying process tends
to be more complex and lengthy.
Buyer-Customer Relationship
While consumer marketing is aimed at large groups through mass media and retailers, the
negotiation process between the buyer and seller is more personal in business marketing. Sales
representatives and marketers are often assigned to market to individuals who act as influencers
or decision-makers in the customer organization. The bulk of a consumer's interaction with a
brand typically happens via an advertisement, promotion, or transaction. In contrast, B2B
marketing can include numerous meetings between the seller and buyer before a transaction
occurs.
For example, B2B marketers often present products and their benefits in private presentations to
key decision-makers. The B2B organization may also invite prospects and customers to public or
private events to facilitate further conversations. As a result, confidence and trust are gradually
built between the seller and buyer over a period of time. Significant time and money are spent
during the evaluation and selection process, resulting in strong brand loyalty among B2B
customers.
Communications Channels
Although on the surface the differences between business and consumer marketing may seem
obvious, there are more subtle distinctions between the two, with substantial ramifications. The
evaluation and selling process for B2B purchases are longer and more complex than consumer
purchases. However, business marketing generally entails shorter and more direct channels of
distribution to target audiences. Different aspects of the promotional mix can be easily
personalized due to the relationship between a B2B salesperson and the individual buyer.
Most business marketers commit only a small part of their promotional budgets to general
advertising, usually through direct marketing efforts and trade publications. For example, a
business marketer may allocate spending to banner advertising or paid search. Similar to
consumer ads, these advertisements lead to landing pages, where marketing messaging aims to
convince web visitors to submit a form, download a brochure, or register for a webcast. While
business advertising is limited, it helps generate leads that marketing can pass along to sales
representatives.

3) Following are some of the most important factors in marketing new and existing products
successfully.

Key #1: Meet a genuine consumer need.

Too many products are in search of a market. Consumer research is critical. Products that

meet a genuine consumer need have a basis for long-term consumer interest and
purchase. Sometimes those needs are latent and are created with an innovation in the
market, such as with the invention of the internet or cell phones. Do your homework.
Talk to consumers. Make sure there is a genuine consumer need to fulfill and that the
market need is large enough to warrant the introduction.

Key #2: Make sure product performance measures up.

Products that don't fulfill on their promise or fulfill the wrong need miss the mark and the
market. Test the product in the lab and with consumers to ensure that the product not only
delivers on the need but that the consumer perceives it to deliver on the need. Prospecting
for new customers is expensive. Keeping good customers who are satisfied with the
product's performance and who will tell their friends is invaluable for the long-term
health of the product. It is also critical that the product is in step with the competitive
market. If it performs well but another product is superior, product life may be short.

Key #3: Ensure strong price-value relationship.

Consumers generally want to make the best buying decision possible for the money. If
the product solves a need and performs well but the cost is too high, the customer will
look elsewhere. The price of the product must be in proportion to the problem or need it
meets. Consumer research is critical here. Don't forget the competitive assessment.
Price/value is usually relative to the other choices consumers have. Great value for the
consumer enhances prospects for market longevity.

Key #4: Proper positioning and differentiation.

Many times there is a great product that performs well, but the message to the customer is
wrong. In a voyage to the moon, missing the target by just 2% will be disastrous for the
astronauts. Likewise, precise positioning of the product to the customer can make the
difference between success and failure. Many companies are too consumed with where
they will advertise before carefully determining what to say-the message. Advertising
needs to be focused on a meaningful benefit to the consumer. It also needs to clearly help
the customer understand and feel motivated to buy this product rather than any other one
available on the market. When you are done, you want them to feel there is no better
alternative than to buy your product.

Key #5: Being on the right timing.

Being early to market is valuable. Many successful products were established by being
the first to market. However, it is equally important not to be too early before the market
is developed. Being a later entrant to market works best if you can improve on what is
available. There needs to be a reason for customers to want to buy your product over
others that are available. It is hard to start the race late with a horse that won't race as
well as the leader. Likewise, it sometimes requires stamina to develop a new market.
Patience may be the price of success.

4) Promotional Methods:

Promotional methods in business-to-business (B2B) marketing differ from those of business-toconsumer (B2C) brands due to the specific needs and variables comprising the industrial
business market. Since B2B customers are other companies and organizations, B2B brands avoid
mass market broadcasts. Likewise, they generally use communication channels aimed at specific
industries and business audiences. B2B companies also ensure their brands are represented at
industry events where potential customers meet B2B sellers. Extensive research and budget
analysis are conducted to determine if specific promotional elements will achieve short-term or
long-term marketing goals and contribute to the financial performance of the organization.
Promotional Tools Used in the B2B Marketing Mix:
B2B businesses use promotional methods unique to the industrial business market. For instance,
marketers and sales professionals use white papers and product brochures to educate prospects
and customers about products or services. These publications are also placed in industry and
trade media to produce favorable publicity. If done strategically, media placement enforces
messaging behind specific marketing activities across multiple communication channels.
In addition to trade shows and public conferences, seminars and workshops may also be held for
potential and existing customers. Relationship building is a key aspect in B2B marketing, as
brand loyalty and commitment tend to be higher among business customers compared to
consumers. Hosting these seminars creates an aura of exclusivity and presents an intimate forum
where individuals from B2B organizations can voice concerns, submit feedback, and view
product demonstrations.
Social media is fast becoming a promotional tool used to position B2B brands in the digital
sphere. Although B2B organizations tend to be more cautious than B2C brands in using social
media, more and more B2B companies are using sites such as Facebook and LinkedIn to connect
to customers. Moreover, B2B organizations also use social media for internal communications to
increase collaboration and productivity among workers. Internal and external communications
via social media can also work concurrently, as employees often share information on events,
product releases, and industry developments with other colleagues.