Transcript Business-to-Business Internet Marketing

Business-to-Business Internet
Marketing
Week 14
Objectives
• Business to business versus business to
consumer markets
• The nature of business to business market
• International business to business marketing
• Case studies of best practice
Market Structure
• Fewer but larger buyers
• Suppliers are well known
• Correspondingly small number of
competitors
Nature of the Buying Unit
•
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Users
Influencers
Buyers
Deciders
Gatekeepers
Type of Purchase
• Low volume high value orders – low
internet involvement
• High volume low value orders – more
suitable for the internet
E-commerce benefits
• Easy for purchaser to assess whether item is
in stock
• Order can be completed at any time of day
or night
• Re-buys or repeat orders are easy to specify
• Delivery can be tracked online
• Purchasing history can be reviewed
Communication Differences
• Balance of communication mix is different, with
advertising and sales communication often merely
being vehicles to support personal selling –
internet will not change this mix
• Below the line techniques tend to be more
common easily supported by the internet
• Business product tend to be higher involvement,
the internet can provide greater depth
Applying the Principles of
Customers.com to the B-to-B
Market
Target the right customers
•
• Own the customer’s total experience
• Streamline business processes that affect the
customer
• Provide a 360-degree view of the customer
relationship
• Let customers help themselves
• Help customers do their jobs
• Deliver personalized service
• Foster community
Transactional E-commerce
• Businesses are familiar with using the similar
techniques of EDI
• There is more pressure on businesses to trade
using e-commerce
• Business-to-Business relationships are often long
term, making it more worth while for businesses
to set up links between business partners
• The volume of transactions is often higher,
thereby justifying the outlay
• Significant cost saving can arise through use of Bto-B e-commerce
International B-to-B marketing
• ‘a 24 hour order taking and customer
service response capability
• Regulatory and customs-handling
experience to ship internationally
• In-depth understanding of foreign marketing
environments to assess the advantages of its
own products and services
The Role of the Internet in
Overcoming SME Resistance to
Exporting
Barrier
How the Internet can assist
1 Psychological
Can help increase knowledge of overseas
markets. Provides success stories of companies
that have become exporters. International
enquiries to prototype web sites can highlight
demand
2 Operational
E-commerce facilities can simplify the handling
of international transactions. Can supply
information on export issues
3 Organizational
Overcomes lack of financial and staff resources
for selling abroad. Provides knowledge of
international markets and cultures. Creates
networks of partners
4 Product/market
Feedback from customers or market research
facilitated by internet may indicate the
suitability of products for the overseas market
B-to-B Case studies of Best
Practice
• e-STEEL enables trading between buyers and
sellers in a virtual marketplace
• Product evaluation and selection – Marshall
Industries product
• Boeing uses PART web site to streamline ordering
process
• Cisco excels in pre-sales and after-sales customer
service
• UK DCS uses online monitoring to reduce costs
and improve customer services