Official Definition: The process of matching and combining the capabilities of the supplier with the desired outcomes of the customer to create value for the “customer’s customer.”
PEOPLE often overlooked, but without the most important ingredient that separates you from the rest – your consumer.
PRODUCT the product itself has to be sweet enough that people want it, total offering is created by a partnership between the buying organization and the marketing organization, process creates an augmented product that is specific to the buying unit’s needs and maximizes the value creation capabilities of the marketer.
PRICE marketing is about the finding the sweet spot between expensive that no one can afford, and too cheap that although it sells the business can’t sustain it The mutually agreed-upon amount that satisfies both sides in an exchange. Often varies from fixed price, with more special discounts and allowances (in comparison to consumer markets.) May involve things other than a one-time price payment (such as commissions.)
PLACE you have to make sure consumers get it where they want it – imagine cookies that had eggs added at the end? Place is about getting the product to the customer in order to maximize economic utility .
PROMOTION it’s all about how you sell it – oranges vs apples Consumer: Emphasis is frequently on advertising . Communication with customers is often a monologue . Relationship is often brief . B2B Emphasis is frequently on personal selling . Communication with customers should be a dialogue . Relationship is often long-lasting .
B2B demand is derived demand because a business’s demand for goods and services comes either directly or indirectly from consumers’ demands eTextbooks – derived demand for paper? derived demand for apps?
Acceleration Principle: “Bullwhip Effect” Page 9 in text – great example page 10 with Ford and the Firestone recall “ Ford sneezed and the industry caught a cold”
Total cost of owning or using a product Transportation, carrying costs, financing costs, potential obsolescence, cost of failure, installation, flexibility to upgrade, etc. Consumers have same considerations but are attracted to “Deals”
Do you puzzle - “total offering” as a piece of a puzzle—the puzzle that must be understood by the business-to-business marketer as potentially different for each customer. Not only does a B2B marketer have to make sure all the pieces are there, provided in the best order for success, but also that the end puzzle is something of VALUE to the end consumer as well. That’s the total offering. Product Service Image Availability Quantity Evaluated Price
IndustrialOrganizationalMarketingAn IntroductionPresented by Lindsey Fair
capabilities of supplier+client objectives=customer valueA littlebit likeamatchmaker…