07 - Analysing Business Markets

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MARKETINGMANAGEMENT


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PART 3 CONNECTING

WITH CUSTOMERS

7. ANALYSING

BUSINESS

MARKETS


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Business Markets An Introduction Business Marketing is also referred to

as B2B Marketing or simplyIndustrial Marketing.

The volume of B2B transactions is

much higher than the volume ofB2C transactions.

Business Marketing is about

meeting the needs of other

businesses, though ultimately thedemand for the products made by

these businesses is likely to be driven

by consumers in their homes.


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Value Chain


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Business Markets An Introduction Business marketing is the marketing of

products and services to businessorganisations (also called industrial

organisations).

Business organisations buy productsand services for

o producing other goods and

services

o making profitso reducing costs, etc


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So why is B2B Marketing so important? B2B Buyers Are More "Rational

What does this mean for the business-to-business marketer?

o Due to the accountability, no B2B

buyer wants to risk buying an

unreliable product and service.o The emotional issues such as trust and

security are absolutely critical.

o There is great emphasis on brand,

reputation, case studies and otherfactors.


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So why is B2B Marketing so important?B2B Products Are Often More Complex

What does this mean for the business-to-business marketer?

o B2B marketer is to be fully informed in

relation to the product or service.

o The understanding must covertechnical details, after-sales service,

problem resolution, client management

team, etc.

o

B2B sale is often termed as atechnical sale; the salespeople are

extremely experienced and originate

from a technical discipline.


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So why is B2B Marketing so important? Limited Number Of Buying Units In

B2B Markets

What does this mean for the business-

to- business marketer?

o Database management is acrucial part of business-to-

business marketing.

o Business-to-business marketer

be adept at key accountmanagement.


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So why is B2B Marketing so important? B2B Markets Have Fewer Behavioural And

Needs-Based Segmentso A price-focused segment

o A quality and brand-focused segment

o A service-focused segment

o A partnership-focused segment

What does this mean for the business-to-

business marketer?

o Business-to-business markets have

relatively few segmentso B2B marketer requires skills in

recognising customers segments


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So why is B2B Marketing so important? Personal Relationships Are More

Important In B2B Markets

What does this mean for the business-

to- business marketer?

o This implies relatively highexpenditure on people (sales

and technical support) and a

more modest expenditure on

other forms of promotion.


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So why is B2B Marketing so important?

B2B Buyers Are Longer-Term

Buyers

What does this mean for the

business-to-business marketer?

o The importance of

relationship- building with

key customers

o The importance of atechnically focused sales

team


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So why is B2B Marketing so important? Branding strategies are properly researched

and painstakingly implemented. Branding strategy should encompass every

customer touch point within the business,

and beyond, acting as a framework through

which the companys values aretransmitted.

Business-to-business marketers should

recognise that less is more when it comes to

branding far better to have one coherent

brand which customers, stakeholders andemployees alike can relate to.

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Business vs Consumer MarketingThe principal functions of marketing apply toboth consumer and business marketing

Decide the target market

Find out needs and wants of target markets

Develop products and services to meet the

target market

Evolve strategy to reach and satisfy the

target market, better than the competition


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Differences between Business and Consumer Marketing

The markets are geographically

concentrated.

The customers are relatively fewer.

The distribution channels are short.

The buyers are well-informed. The buying organisations are highly

organised.

The organisations use sophisticated

purchasing techniques.

The purchasing decisions are

monitored at various stages.


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Types of Business Customers Commercial enterprises

o Industrial Distributors and

Dealers

o Original Equipment

Manufacturers (OEMs)

o Users

Government customers

Institutional customers

Cooperative societies


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Original Equipment Manufacturers


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OEMs & Users


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Government Customers


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Classification of Products & Services

Materials and Parts

Raw Materials

Manufactured Materials and

Component Parts

Component Parts or OEM parts

Capital Items or Capital Equipment

Facilitating products

Supplies and Services


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Raw Materials


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Capital Equipment

Documents

07 - Analysing Business Markets