Transcript Definition Business marketing

Definition Business marketing
=The marketing of goods and services
to commercial enterprises,
governments and other nonprofit
institutions
-For use in goods and services that they, I
turn produce or
-For resale to other industrial customers
Definition 2
• 2 essential aspects
-type customer
-intended usage of theory and application
theory based on a short case story
Type of customers
• Government
• Institutions
• Companies
-users
-OEM’s(origin.equipment.nanuf.)
-distributors
Different buying behaviors
Intended usage
-Manufacturing
-Trade
Differences BM_CM
• Market structure
-number of clients and suppliers
-concentration more geographical concntr)
-international
• Nature of demand
-derived demand( determined by the consumer demand)
-inelastic (BM)
-acceleration-effect (outsourcing)
Differences BM-CM 2
• Baying behavior
-professionals
-motives: rational vs. emotional
-purchasingproces, buying teams
-relations
-size and frequency of purchases
• Marketing instruments
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2 additional p’s
Different composition of mark.mix
Type of product
• Capital goods : equipment + systems
• Materials
-raw materials
-processes materials
-components
• Usage goods MRO’s (maintenance rapid
office suppliers)
• Services
Marketing on business markets 1
• Marketing philosophies: 5x
• When market oriented:
- customers and his needs as starting point
-Market scanning, marketinfo
-internal circulation of info
-competitors
-segmentation/target group
-adapt to changes in market
Marketing on business markets 2
• Market orientation, based on 2 concepts:
-external focus on relevant market parties
(who is customer? marketing system/competition/suppliers etc.)
-Internal focus on international coordination
(coordination with ‘non marketing”
departments/informing, involve others )
Introduction market orientation
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Change of culture
Mentality
Resistance
Teambuilding
Support top management
Communication
Project groups
Transactions and relations
• B/M/ = relationmarketing
(personal contact,networking,cooperation)
DIFFERENSES Transaction and Relationmarketing \
-”always a share” vs. “always lost”
-Low vs. high cost of change
-Low vs high risk in case of wrong buy
-Emphasis on product, person vs. technology, supplier
-Purchase less vs. very important
Buying behavior
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Basis business marketing
Subjects: - Buying process
Buying situation
DMU and PSU
Purchasing portfolio and purchasing
strategies
- Supplier management
Buying process
• Product and market technical phase
-problem recognition
-specs determination
-search for potential suppliers
-quotations
• Commercial phase
-Negotiations, choice, contract
• Administrative phase
-order monitoring, evaluation, feedback
Buying situations
• New task
• Modified rebuy
• Straight rebuy
Buy grid model
• Combination buying process and buying
situations
• Determination marketing strategy
-Questions buy grid (combination important? Which departments c.q.
persons involved? Which roles c.q. functions? Sources of
information?)
DMU – PSU
• DMU: all persons involved in purchase. Role: initiator/user/influencer/buyer/decider/gatekeeper/
• PSU: - Team of specialists at seller’ side
-adjust to level in DMU –Tend to closer cooperation
-Coordination
Buying motives
• Task oriented
• Non-task objectives
Buying strategies
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Strategic products: partnership
Leverage products: competitive bidding
Bottle neck products: security supply
Routine products: system contracting
Supplier Management
• Changing character purchase: more
strategic
-less suppliers
-Character of relation
-more professional
• Consequences for marketing policy
suppliers
Market Research
• No fundamental BM-CM
• 3 main differences
-derived demand
-concentration of demand
-DMU and buying process
Characteristics research BM
• Secondary data (desk)
-more usage of secondary data
-sources : internal/external
-Standard Industrial Classification (SIC)
- (SBI)
Characteristics Research BM
• Collection primary data (field)
-mainly qualitive research to find complex,
buying motives
-personal interviews
- Technical knowledge required
- Size of sample
Market segmentation
• Dividing market into groups of potential
customers who are similar in needs,
expectations, are response to marketing
stimuli
- Characteristics buyers
- Criteria
Requirement segmentation
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Homogeneous
Reachable
Size
Measurable
Accessable
Segmentation Criteria
• Macro level (- organizational characteristics: SBI-code/size,
usage/product application/geographical location.
-Characteristics buying decision: buying situation/phase of buying
process)
• Micro level (- DMU characteristics: roles, decision
procedures/ buying criteria/purchasing strategy.
-Characteristics DMU – members: function, experience/ loyalty to
supplier/ life style, personality/ age, sex, education, etc.
Product levels
• Core products (why is the customer buy?)
-BM: solutions for problems
• Tangible products (components,
packaging, design)
• Augmented(Service, delivery time)
Quality
• Product orientation
• User orientation
• Production orientation
Types of product
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Catalogue products
According specification
Tailer made (unique product only for 1)
Services
Service
• Characteristics
-untangible
-production and consumption at the same
moment
-heterogeneous
-no stock
-no property (of client)
Service
• Pre sale service
• Transaction related service (customer
service)
• After sales service
Service BM-CM
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Tailor-made
Large technological component
Production at site of customers
More emphasis on business than person
Distribution
• Most strategic marketing instrument
• Functions distribution channel
• Main aspects distribution policy
Design Channel structure
• Distribution objectives (depends on marketing and goals/ availability/
lowest costs/ max. control/ max. saleseffort/ optimal back up/positive
image/market feedback)
• Limitations and conditions (right intermediates available?/ product
characteristics/ customer needs/ budget/strategy competition/
geographical distribution clients/ tradition)
• Channel tasks (commercial/ financial/ logistical)
• Channel alternatives (length channel/number of levels/type
intermediate-agent or industr.distributor/number of distr./#of chaneel
• Evaluation and choice
Direct&Phisical distribution
• Direct: (limited # of clients/ geographical
concentration/large orders/high margin/ specialistic
support required/JIT (just in time you need it) delivery
• Physical: (Logistic management=materials management
+ physical distribution/ trade offs/ customer services/
make or buy (financials&commercials reasons, personal
and equipment))