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Business-toBusiness
Marketing
Business Markets
Business Customers
Industrial Classification
The Business Buying Decision Process
Business-to-Business Marketing
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Business-to-Business Marketing > Business Markets
Business Markets
• Defining Business Marketing
• B2B vs. Consumer Marketing: Similarities and Differences
• Types of Businesses
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Business-to-Business Marketing > Business Customers
Business Customers
• Characteristics of Business-Customer Interactions
• Customer Concerns
• Purchase Behavior
• Purchase Influences
• Negotiating
• Leasing
• Promotional Methods
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Business-to-Business Marketing > Industrial Classification
Industrial Classification
• Identifying Potential Business Customers
• Estimating the Addressable Market
• Categories of Business Products
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Business-to-Business Marketing > The Business Buying Decision Process
The Business Buying Decision Process
• Decision-Making Units
• Buying Centers
• Buying Situations
• Stages of Business Buying
• Measuring Vendor Performance
• Influences on Business Buying
• Business Ethics in B2B
• Customer Service as a Supplement to Products
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Appendix
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Business-to-Business Marketing
Key terms
• B2B An abbreviation for business-to-business sales, in which both buyer and seller are organizations rather than individual
consumers.
• B2B Business-to-business (B2B) describes commerce transactions between businesses, such as between a manufacturer and
a wholesaler, or between a wholesaler and a retailer.
• B2B Business-to-business (B2B) describes commerce transactions between businesses, such as between a manufacturer and
a wholesaler, or between a wholesaler and a retailer.
• B2B Business-to-business (B2B) describes commerce transactions between businesses, such as between a manufacturer and
a wholesaler, or between a wholesaler and a retailer.
• B2B Business-to-business (B2B) describes commerce transactions between businesses, such as between a manufacturer and
a wholesaler, or between a wholesaler and a retailer.
• B2C The sale of goods and services from individuals or businesses to the end-user.
• business analysis a research discipline of identifying needs and determining solutions to problems facing firms
• business-to-business Of businesses selling to other businesses.
• Buying Center A group of employees, family members, or members of any type of organization responsible for finalizing major
purchase decisions.
• Buying Center A group of employees, family members, or members of any type of organization responsible for finalizing major
purchase decisions.
• capital Money and wealth. The means to acquire goods and services, especially in a non-barter system.
• channel A distribution channel.
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Business-to-Business Marketing
• customer relationship management A widely implemented model for managing a company's interactions with customers,
clients, and sales prospects. It involves using technology to organize, automate, and synchronize business processes—
principally sales activities, but also those for marketing, customer service, and technical support. Also known by the acronym
"CRM. "
• customer relationship management A widely implemented model for managing a company's interactions with customers,
clients, and sales prospects. It involves using technology to organize, automate, and synchronize business processes—
principally sales activities, but also those for marketing, customer service, and technical support. Also known by the acronym
"CRM. "
• customer relationship management A widely implemented model for managing a company's interactions with customers,
clients, and sales prospects. It involves using technology to organize, automate, and synchronize business processes—
principally sales activities, but also those for marketing, customer service, and technical support. Also known by the acronym
"CRM. "
• customer satisfaction a measure of how products and services supplied by a company meet or surpass customer expectation
• depreciation The measurement of the decline in value of assets. Not to be confused with impairment, which is the
measurement of the unplanned, extraordinary decline in value of assets.
• ethics The moral principles that guide decision making and strategy.
• extranet A private computer network that uses Internet protocols and can be accessed by authorized individuals via the
Internet.
• fundamental value equation Customer Perceived value of a product is the difference between the prospective customer's
evaluation of all the benefits and all the cost of an offering and the perceived alternatives. Formally, it may be conceptualized
as the relationship between the consumer's perceived benefits in relation to the perceived costs of receiving these benefits. It is
often expressed as the equation : Value = Benefits / Cost.
• information silos A management system incapable of reciprocal operation with other, related information systems.
• intangible Incorporeal property that is saleable though not material, such as bank deposits, stocks, bonds, and promissory
notes.
• Key Performance Indicator industry jargon for a type of performance measurement. KPIs are commonly used by an
organization to evaluate its success or the success of a particular activity in which it is engaged.
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• lead Potential opportunity for a sale or transaction, a potential customer.
Business-to-Business Marketing
• lessee An individual or a corporation who has the right of use of something of value, gained through a lease agreement with the
real owner of the property.
• Market Research The systematic collection and evaluation of data regarding customers' preferences for actual and potential
products and services.
• market segmentation The process of dividing a broad target market into subsets of consumers who have common needs or
desires, as well as common applications for the relevant goods and services.
• Market Share The percentage of some market held by a company.
• marketing mix A business tool used in marketing products; often crucial when determining a product or brand's unique selling
point. Often synonymous with the four Ps: price, product, promotion, and place.
• North American Industry Classification System A system used by businesses and government to classify business
establishments according to type of economic activity (process of production) in Canada, Mexico, and the United States.
• raw material manufacturing inputs in its unprocessed, natural state
• Request for Proposal A solicitation made, often through a bidding process, by an agency or company interested in procurement
of a commodity or service, to potential suppliers to submit business proposals.
• SAM Served market share (SAM) is the percentage of the market that is already being served, either by that company or all
providers.
• stakeholders A person or organization with a legitimate interest in a given situation, action or enterprise. It can range from
employees and investors of a company to the customers purchasing from the company.
• supply side in a market trade, the side where the supply comes from
• TAM Total addressable market (TAM), also called total available market, is a term that is typically used to reference the
revenue opportunity available for a product or service.
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Business-to-Business Marketing
• trade show An exhibition organized so that companies in a specific industry can showcase and demonstrate their latest
products and services, study activities of rivals and examine recent market trends and opportunities.
• webcast A video and or audio broadcast transmitted via the Internet.
• webcast A video and or audio broadcast transmitted via the Internet.
• white paper A factual write-up of something, specifically devoid of the appearance of marketing.
• white paper A factual write-up of something, specifically devoid of the appearance of marketing.
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Business-to-Business Marketing
Risk and Return
Less risky investments yield less returns. The riskier the investment, the higher the yield.
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Business-to-Business Marketing
Ethics in Market Research
Firms need to be careful not to use irresponsible stereotyping in the market research process.
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Business-to-Business Marketing
Leasing Sign
Leasing products is often a viable alternative for cash-strapped organizations.
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Flickr. "All sizes | Leased - 090520081773 | Flickr - Photo Sharing!." CC BY http://www.flickr.com/photos/roland/2478229521/sizes/l/ View on Boundless.com
Business-to-Business Marketing
Example of Competitor Profiling
The folio plot visualizes the relative market share of a portfolio of products versus the growth of their market. The circles differ in size by their sales
volume.
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Wikimedia. "Folio Plot BCG Matrix Example." CC BY http://commons.wikimedia.org/wiki/File:Folio_Plot_BCG_Matrix_Example.png View on Boundless.com
Business-to-Business Marketing
Trade Show Exhibitors
B2B companies usually conduct research and assess budgetary requirements before exhibiting at trade shows.
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Flickr. "All sizes | GeoTHERM 2012 - Geothermal Trade Show Germany | Flickr - Photo Sharing!." CC BY
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Business-to-Business Marketing
Business Customer Interaction at Conferences
Conferences present opportunities for B2B businesses to interact with customers.
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Flickr. "All sizes | ECPR Regulation & Governance Conference 2012 | Flickr - Photo Sharing!." CC BY
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Business-to-Business Marketing
Customer Service Brainstorming
B2B companies usually have customer service programs in place to quickly and adequately address customer concerns.
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Flickr. "All sizes | Customer Service Think Tank hosted by Dell | Flickr - Photo Sharing!." CC BY http://www.flickr.com/photos/dellphotos/7442621256/sizes/l/ View
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Business-to-Business Marketing
IBM Cell Processor
IBM traditionally focused on large organizational customers, causing the company to devote too little effort to the much faster-growing segment of small
technology start-ups. It's emphasis on computer technology and hardware made it slow to respond to the explosive growth in demand for Internet-based
applications and services.
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Wikimedia. "Cell-Processor." CC BY http://commons.wikimedia.org/wiki/File:Cell-Processor.jpg View on Boundless.com
Business-to-Business Marketing
Leased Locomotive
This locomotive is leased to the Union Pacific Railroad, hence the paint, but it was never owned by them. The locomotive is actually an ex-Long Island
Railroad unit.
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Wikimedia. "LLPX 2235." CC BY-SA http://commons.wikimedia.org/wiki/File:LLPX_2235.jpg View on Boundless.com
Business-to-Business Marketing
Customer Event
Promotional channels such as events provide ways for B2B sellers to move prospects along the buying process.
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Static Flckr. CC BY-SA http://farm9.staticflickr.com/8436/7773744910_e8bc86f0be_c.jpg View on Boundless.com
Business-to-Business Marketing
Chairman of Hong Kong Stock Exchange
The chairman of the Hong Kong Stock Exchange is an example of a member in an organization responsible for finalizing major purchase decisions.
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Wikimedia. "Dmitry Medvedev in Hong Kong 17 April 2011-11." CC BY http://commons.wikimedia.org/wiki/File:Dmitry_Medvedev_in_Hong_Kong_17_April_201111.jpeg View on Boundless.com
Business-to-Business Marketing
Trade Show Marketing
A trade show is a common promotional element in business marketing.
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Wikimedia. "ACEC trade show - National Convention Centre Canberra." CC BY-SA http://commons.wikimedia.org/wiki/File:ACEC_trade_show__National_Convention_Centre_Canberra.JPG View on Boundless.com
Business-to-Business Marketing
Business Feedback loop
Firms need to compare products with specifications. The results become feedback for other stages in future business purchasing decisions. If a firm has
any negative issues with a vendor, it is likely they will look for another one.
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Business-to-Business Marketing
Product Innovation Approach
In the product development cycle, the market analysis and consumer research phases are used to identify customers.
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Wikimedia. "Common (or traditional) Product Innovation Approach." CC BY
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Business-to-Business Marketing
Service Delivery
Delivery of goods or service may not be enough to allow for a business to recognize revenue on a sale if there is doubt that the customer will pay what it
owes.
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Flickr. "All sizes | Technical Services 16 | Flickr - Photo Sharing!." CC BY-SA http://www.flickr.com/photos/sanjoselibrary/5077983155/sizes/l/ View on
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Business-to-Business Marketing
Skyscraper
The ownership structure of a business determines their tax and legal liabilities.
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Flickr. "All sizes | The Plaza Athenee - A Royal Meridien Hotel in Bangkok - Thailand - July 2009 - The majestic hotel tower in the heart of Wireless Road!The
business avenue and Embassy central!| Flickr - Photo Sharing!." CC BY http://www.flickr.com/photos/uggboy/4040359955/sizes/l/ View on Boundless.com
Business-to-Business Marketing
Negotiation vs. Interests
Negotiating tactics in B2B transactions involve taking into account both buyer and seller interests.
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Business-to-Business Marketing
Business Meeting
Lengthy and complex sales cycles influence B2B purchase behavior.
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Business-to-Business Marketing
Customer Service Desk
Retail stores and organizations in general often have a desk or counter devoted to dealing with returns, exchanges and complaints, or will perform
related functions at the point of sale. This is a form of customer service.
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Wikimedia. "Portland Central Library, Oregon (2012) - 111 - Customer Service." CC BY-SA
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Business-to-Business Marketing
B2B Buyer Decision Map
This chart illustrates how B2B customers approach the buying situation, and what questions they may need answered before committing to an
agreement. B2B exchanges are often practically driven, considering what the business needs, how they can fulfill that need, and why the seller is the
optimal fit to do so.
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Wikimedia. "B2B_buyer_decision_map.jpg." CC BY-SA 3.0 https://upload.wikimedia.org/wikipedia/commons/5/5e/B2B_buyer_decision_map.jpg View on
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Business-to-Business Marketing
Attribution
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• jessy409 Wikispace. "Chapter 8." CC BY-SA 3.0 http://jessy409.wikispaces.com/Chapter+8
• jessy409 Wikispace. "Chapter 8." CC BY-SA 3.0 http://jessy409.wikispaces.com/Chapter+8
• Wiktionary. "business-to-business." CC BY-SA 3.0 http://en.wiktionary.org/wiki/business-to-business
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Business-to-Business Marketing
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Business-to-Business Marketing
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Business-to-Business Marketing
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• Global Text Project. "Introducing Marketing by John Burnett." CC BY 3.0
https://dl.dropboxusercontent.com/u/31779972/Introducing%20Marketing.pdf
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Business-to-Business Marketing
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