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Why B2B Marketing ?

Ex of HOCARE segments of Amul Emerging trends in India

ESI, Railways etc

Industrial market :
Industrial market Consists of all the individuals and

organizations acquiring goods and services that enter into the production of other products and services that are sold, rented, or supplied to others

B2B Vs. Consumer Marketing


Areas Business Markets
Concentrated at one place or region Selective Buyers Product Characteristics Technical Complexity Customised

Consumer Markets
Widely dispersed Global Consumer Mass Consumption Non Technical Standardised

Market Characteristics

Service Characetristics

On time service is very Not that important important

B2B Vs. Consumer Marketing


Areas Business Markets
Involvement of Various Functional areas in both the vendor and supplier firms Decisions are made on a rational / Performance basis Technical Expertise Stable relationship between the buyer and seller

Consumer Markets
Involves mainly the end user or the family members Need based. Physiological, Social, Psychological basis. Very less Non personal relationship

Buyer Behaviour

B2B Vs. Consumer Marketing


Areas Business Markets
Direct supply

Consumer Markets
Indirect ie through a well appointed Channel partners. Multiple levels Depot CFA Stockist Retailer Emphasis on Advertising Free sampling. Offers.

Channel Characteristics

Fewer Channels at the max Promotional Characeristics Emphasis on personal selling Advt in trade journals, business magazines, Direct mailers, brochures Trade shows, technical seminars

B2B Vs. Consumer Marketing


Areas Business Markets
Competitive bidding and negotiated Prices Volume discount offered.

Consumer Markets
MRP Seasonal discounts.

Price Characertistics

Big Process

Short process.

Types of Business Customers


4 types of Business Customers.

-Study of the different types of customers is important because these groups have different purchasing orientions and Purchasing Practices

Commercial Enterprises
Original Equipment Manufacturers
Users Industrial distributors / dealers : Purchase goods and

resell them in the same form to other industrial customers such as other commercial enterprises, government supply or institutional customers Middle men of the industrial markets.

Government Customers
Government Undertakings - Indian Railways, Banks

Public Sector Undertakings - BHEL, ONGC

Institutional Customers
Public Institutions

Private Institutions Ex : Private Companies

Industrial buying process :


Industrial buying process Recognise the problem

determine product needs and describe product specifications search for suppliers assess and select suppliers evaluate overall performance

Participants in the industrial buying process :


Participants in the industrial buying process Users

influencers buyers deciders gatekeepers

Factors affecting industrial buying behaviour:

External factors : Factors affecting industrial buying behaviour: External factors Level of demand economic outlook budget constraints supply conditions political/legal and competitive environmental changes rate of technological change

Industrial market Businesses do not buy products for

final consumption. Instead, they make purchases to be used directly or indirectly in meeting the needs of final consumers. Consumer market For direct consumption Buying motive: Differences between consumer market and industrial market

Industrial market Tend to be larger Consumer market

Tend to be smaller Size of purchase: Differences between consumer market and industrial market

Industrial market Less frequent Consumer market

More frequent Differences between consumer market and industrial market Frequency of purchase:

Industrial market Stable and long term relationship

with seller Consumer market Businesses that produce products for sale to final consumers often have little contact with customers Buyer-seller relationship: Differences between consumer market and industrial market

Industrial market More complex, customized; product

support is critical. Consumer market Less complex, standardized; product support is important Product: Differences between consumer market and industrial market