Introduction to

Business-to-
Business Marketing

By: Dr. Waseem Hassan

Introduction
• Different challenges than consumer markets
• Relationships, values, and buyer decision making
• Role of Services
• Entrepreneurial Marketing
• Involves innovation, acting proactively, and taking calculated risks
Marketing Fundamentals in
Business-to-Business Markets
• Business Markets consists of all organizations that purchase goods
and services to use in the creation of their own goods and services.
• Own goods and Services then offered
• Not as resale
• Fewer but larger customers
• Business Marketing is the process of matching and combining the
capabilities of the supplier with the desired outcomes of the business
customer.
• To create value
The Marketing Mix
• Product
• Core Product or Service
• Quantity
• Price
• Payment plans
• Spare parts delivery
• Training
The Marketing Mix Contd…
• Price
• Mutually agreed upon amount
• Determined by the market
• Final step in B2B marketing
• Commission
The Marketing Mix Contd…
• Place
• Form, time, place, possession
• Value creation
• Supply Chain Management
• Promotion
• Advertising, sales promotion, personal selling, public relations
• Closeness and duration of the business
Derived Demand and Business-
to-Business Supply Chains
• Consumer Demand is the quantity of goods and services desired to
be bought.
• Derived Demand is the demand experienced by chain of suppliers
and producers that can contribute to the creation of total offerings.
• Bullwhip Effect means a small percentage change in consumer
markets leads to much greater changes in business markets.
• Discontinuous Demand is when quantity demanded in the market
makes large changes in response to change in market conditions.
Complexity – A Rationale for
Relationship Marketing
• Understand customers’ customer
• Anticipate change in needs
• Increase in number of Competitors
• Create more vale for existing customers
• Complex nature of buying decision
• Complexity will enhance customer value
Market Structures
• Small no. of customers
• Fewer in number
• Large orders
• Market segments
An Examination of Value
• Value is the sum of all benefits customer receives in the process of
buying.
• Complicated at the same time
• Evaluated Price
• Value Chain
• Competitive Advantage
Direct Vs. Support Activities
• Direct activities contribute directly to the offerings
• Support activities do not contribute directly but are significantly
important
• Understand prospective customers
• Not all customers are alike
• Both direct and support activities are equally important in creating
value.
• Creation of value extends from customers back to distribution
channels to manufacturer to suppliers
Trends and Changes in Business
Marketing
• Hyper Competition
• Formation of Partner Networks
• Adoption of Information Technology and the Internet
• Supply Chain Management
• Time Compression