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26 views20 pages

B2B_Session 1_29062024

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Uploaded by

mba23dikshatiwari
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IIM, Sambalpur

Confidential

Business to Business Marketing

Dr. Sandip Mukhopadhyay


Course Outline

❖ Uniqueness of B2B compared to B2C market

❖ Value and value proposition

❖ Key processes and the levers of B2B Selling

❖ Value Based Selling Process


Course Outline
❖ B2B Buying Process and B2B Buying Centre

❖ B2B Online Market Place

❖ Key account management and account governance

❖ Marketing and Sales Enablement

❖ Technology / AI in B2B Selling

❖ Careers in B2B Selling


Making Best Use of Your Time
• Prepare for the sessions

• Ask questions

• Participate and discuss

• Experiential learnings from your work-experience and summer projects

• Relate your experience with theoretical frameworks discussed in the class


Meet the Faculty

Sandip Mukhopadhyay – Associate Professor in Marketing

• More than 2 decades of industry experience


• Specific focus areas- Marketing Analytics, Social media
Analytics, Digital Platform, and B2B /IT Sales
• Co-authored a book on ‘Technology Selling’
• PhD from MDI, Gurgaon, MBA from IIM-Calcutta, and
Engineering from IIEST, Calcutta
Business Market
• Business marketing is concerned with the marketing of goods and
services to firms, institutions and governments.
• The key distinguishing feature of business marketing is the nature of
the customer, rather than the nature of the product.
• Although there are products that are bought only by organizations and
not by final consumers, there are many products that are bought by
both organizations and consumers.
Business Market Management
• Business marketing management is a process that takes place between
organization
• Business Market Management is the process of understanding,
creating, communication and delivering value
• As a result, B2B marketing involves mix of product and services
(solutions)
Examples of B2B Market
• IT solution such as digital transformation solution, ERP implementation

• Raw material such as crude oil, or cotton fibre

• Heavy or light equipment such as radiology instrumentation

• Components such as automobile components, electric motors

• Services such as management consulting, contract manufacturing


Contrasting B2C and B2B Market
Attribute Consumer/ B2C B2B

• No of buyers • Many (1000 is a small • Relatively fewer(100 is


number) many)

• No of sellers • Can be in thousands • Few large brands

• Location • Buyers are • Buyers are located in


distributed large city, in India,
Delhi/Mumbai
• Sellers are scattered • located in few cities
• Products • Standard / mass- • Customized
produced
• Influencers • Family/Friends • Consultants, Client reference
Contrasting B2C and B2B Market

Attribute Consumer/ B2C B2B

• Pre-sales • Unaided / • Vendors involved / Detailed


process Advertisement evaluation / Long /Multiple
decision makers
• Size of the deal • Small • Large

• Price • Fixed • Negotiated, specific to each


customer

• Value • Perception, usability, • Business Impact


experience

• Demand • Direct / Media- • Derived


stimulated
#1 Large value of the deal
#2 Multiple Stakeholders of Success
• Different Purchase criteria
• Different level of involvement

Business Buyer
Business Seller / Vendor

• Marketing
• Sales
• Customer Care
• Pre-sales
• IT
• Solution
• Purchase
• Delivery
• Finance
• Support
• Regulatory
• Pricing
• Resource Manager
#3 Long process and early involvement of seller

B2B Processes are formal


Window of Opportunity

1. Problem recognition and approach


formalization
Early Seller 2. Bid process and supplier search
Involvement 3. Supplier evaluation
4. Contract negotiation
5. Contract closure and performance
analysis
Importance of Relationship in B2B Market
• Buyer – seller relationships in B2B marketing need to be
close and long term.
• To understand clearly needs of the customer and the
customer’s customers, the selling firm must be customer
focused.
• High switching costs (i.e. costs of switching suppliers)
make relationships between buying & selling firms
difficult to end in B2B market.
• A large proportion of B2B firms’ revenue comes from
repeat orders from the same account, so sellers need to
demonstrate that the promised benefit has been realized.
7/10
Customisation, not out-of-box product
• In B2C, in customization is limited to SKU size, different
types of packing and attaching different offers or
promotions.
• In B2B, the solution is designed and developed after
understanding customer’s context.
• In B2B, the pricing, billing and revenue collection is
account or customer specific.

7/10
#Reimaging the 4Ps

B2B
B2C
• Solution
• Product • Access
• Place • Value
• Price • Education
• Promotion
B2B Market
Do you think the B2B sellers should have fair idea of the
behaviours of the end consumers?
Group Exercise
Do secondary research on the company assigned and present
your findings:
• Industry and competitors
• Key customer and their characteristics
• Product- how the above customer use the products / services
and their criticality in customer’s business
• How the sale happens – direct sales force or channels
• What are the key criteria that buyers use to evaluate / buy the
services/products of these B2B company
TCS, L&T, Moglix, Healthcare business of Siemens or Philips
Challenges in B2B Business
Innovation Commercialization:
Industrial products are technically complex and impact
customer’s business process and ongoing business.

Market Segmentation:
Traditional segmentation techniques such as behavioural and
psychological does not work for industrial customers.
Challenges in B2B Business
Product Pricing:
B2B prices are customer and account specific, premium
pricing cannot be achieved through positioning, branding,
advertisements, complementary services/products and TCO
reductions are valued by customers

Channels:
Complexity and narrow customer base make direct selling
preferable. Partnerships are often forged during sales and
delivery phase, to provide a comprehensive solution.

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