B2B Marketing

1. Prof. Abha Wankhede

2.  Definition:-
“Business Marketing is the practice of individuals, or organizations,
including commercial businesses, governments and institutions, facilitating
the sale of their products or services to other companies or organizations
that in turn resell them, use them as components in products or services
they offer, or use them to support their operations”

3.  Is the marketing of products and services to business organizations.
◦ Commercial Enterprises-
 Original Equipment Manufacturers: Nokia, Cisco, Ashok Leyland M&M
 Users: Walia Auto Ancillary is a supplier to Tata Motors
 Industrial Distributors/Dealers
◦ Government customers
 Government undertakings: Indian Railways, State Electricity board, Defense,
MHADA
 PSUs: BHEL, ONGC
◦ Institutional Customers-
 Public Institutions: Government Hospitals, Municipality Schools
 Private Institutions: Hotels, Schools, Colleges, Academy
◦ Cooperative Societies-
 Manufacturing Units- Maharashtra Sugar cooperative Society, Kaira District
Co-operative Milk Producer.
 Non-Manufacturing Units: Co-operative Banks, Housing Co-operative
Societies.

4.  Derived Demand:-
◦ The demand for a good or service that results from the demand for another good or service.
◦ Ex.:- Pig Iron ---Steel ---Steel Sheets---Automotive part companies--Automobiles--End customer
◦ Derived from the ultimate demand for consumer goods and services in some cases.
 Joint Demand:-
- Demand for product or services is interdependent on each other
◦ Ex:- Coffee Powder, Sugar & Milk in Making Coffee
◦ Ex:- Software- Operating System, Car & Fuel

5. Industrial Products
Raw Materials
Subassemblies
Installation or Heavy
Equipments
Supplies
Services
Exhaust Pipe in Motor Cycle
Machine Tools, Furnaces
Lubricants, Fasteners, paints ,
Electrical Items
Supplies & Services
Iron ore, Crude oil, fruits, fish
Material & Parts
Capital items
Light equipment/
Accessories
Acids, Fuel oil, Steel ,
Chemicals
Component Parts Gauges, TV tubes, Tyres,
Plants & Building
Hand tools, Dies, Jigs
Manufactured
Materials
Plants, Office Building
Legal, Auditing, Advertising,
Courier, Market Research

6. ◦ Buying Orientation
 Lowest Price:
 tactics like Commodification and multi-sourcing
 Eg- Government, Institutes
◦ Procurement Orientation
 Quality improvement and cost reduction:
 a) collaborative relationship with major suppliers:
 JIT delivery scheduling,
 quality assurance to attain zero defect
 Integrative negotiation (benefits both)
 b) working closely with functional areas: MRP Material Requirement
Planning
 Eg-AMUL

8. ◦ Supply chain Management Orientation
 Focuses on how to improve the whole value chain from raw
material to end users. Follows 3 philosophies
 Deliver value to end users
 Thru market research understand end user requirement
 Outsource non-core activities
 Identify the core-competency of the company
 Group strategic and non strategic systems and subsystems
 Outsource systems which are non strategic non competitive
 Involve mature technologies and qualified suppliers
 Support collaborative relationship with major suppliers
 Communication, trust, cooperation, commitment between suppliers
and buyers for mutual benefit
 Results in lower cost and sustainable business and growth.
 GE – 700,000 suppliers across thousands of entities, thru
enterprise software solution

10. Internal Environment:-
Company Location, R&D Facilities, Production Facilities Human
Resource, Company Structure and Image of the company
External Environment:-
Micro Environment :-
Customers & Competitors
Suppliers
Macro Environment:-
Economic: business cycles, currency rate, interest rate, fiscal policies
Demographic: population growth/degrowth
Technological: start new industries and rapidly change existing
Government/Political & Legal: Bills passed for protection..SMED
Investors & NGO: impact on public and nature

11. Areas of Difference B2B Market Consumer Market
Market Characteristics Geographically Concentrated Geographically Disbursed
Relatively Fewer Buyer Mass Market
Product Characteristic Technical Complex Standardize
Customized
Service Characteristic Service , timely Availability
extremely Important
Somewhat Important
Buying Behavior Involvement of Various functional
area from both the ends
Involvement of family members
Purchase Decisions are performance
based and rational
Purchase decisions are mostly based
on Physiological
/social/psychological needs
Technical Expertise Relatively less technical expertise is
required
Stable Interpersonal relationship Non- Personal relationship

12. Areas of Difference Industrial Market Consumer Market
Channel Characteristic More Direct Indirect
Fewer Intermediaries Multiple layer of Intermediaries
Promotional Characteristic Emphasis on Personal Selling Emphasis on Mass Media
(Advertising)
Price Characteristic Competitive Bidding and Negotiated
Prices
List Price or MRP
List Price for Standard Products

14. Sales
Service
Technology/Pre Sales
Marketing
Strategy and Business Plan/AOP
Mission,Vission, Business Objectives

15. Total Market
Available market
Company
Share
Company
Margins

16. Strategic
Global A/C
High Touch
Accounts
Mid Market Segment
Small and Medium Enterprise
Retail and Consumer Business

17. Business Unit
HEAD
(COO/CEO)
National
Sales
HEAD
National
Marketing
HEAD
Product
Mgmt.
Supply
Chain
Mgmt
System
Integrator
Customer
Service
National
Solutions
(SME*)
* SME- Subject Matter Expert

18. Regional HEAD
(Director)
High
Touch
Accounts
Mid
Market
Accounts
SME
Accounts
Retails
Channels
Sales HEAD
(GM)
Various
Support
Functions
(GM)

19. Regional HEAD
(Director)
System
Integrator/
Partner
Relations
Marketing
operations
Projects
Delivery
Finance
Post-Sales
&
Customer
Service
Pre-Sales
&
Solutions
Sales HEAD
(GM)
Various
Support
Functional
Heads

20. National Roles
Service Industry
HEAD
(COO/ CEO)
System
Integrator/
Partner
Relations
Marketing
operations
Projects
Delivery
Finance
Post-Sales
&
Customer
Service
Pre-Sales
&
Solutions
BFSI Business
HEAD
(COO/CEO)
Manufacturing
Business HEAD
(COO/ CEO)
IT/ITES
Business HEAD
(COO/ CEO)
Account
Manager
Based at Regional Offices Close to Customer’s HQ

22.  Director level engagement
 1 / 2 accounts- Nationally/Globally
 B2B Strategic relationship
 Long sales cycle
e.g. Cisco Wipro (Software
development)
(vendor/partner)
Cisco Wipro (Sell-thru, Sell-with)
(reseller/channel)
Cisco Wipro (Customer;
Infrastructure devices for new
projects)
Win-Win

23. System
Integrator/
Partner
Relations
Marketing
operations
Projects
Delivery
Finance
Post-Sales
&
Customer
Service
Pre-Sales
&
Solutions
Account
Manager
Strategic
Account
Director
Common Roles
Global Account
Director
Strategic/ Global
Accounts

25.  National account manager
 Operations-
◦ 5 / 10 accounts per head
◦ Gets credit for sales made nationally
◦ Travels across geographies
 Approach
◦ Customer industry needs
◦ Process knowledge
◦ Customer behavior and aspirations
◦ Increase wallet-share (up-sell, sell additional
services/products)
◦ Value selling
◦ Long Sales Cycle
◦ Bulk business

26.  National account manager
 Operations-
◦ 70 / 100 accounts per head
◦ Mix of national and local accounts
◦ Liaison with local support teams of other geographies for
fulfillment and assurance
 Approach
◦ Customer industry needs
◦ Process knowledge
◦ Value selling
◦ Market penetration strategy (replication of success stories)
◦ Run-rate business
◦ Short- sale cycle

27. System
Integrator/
Partner
Relations
National Sales
Head
Regional Sales
Marketing
operations
Projects
Finance Delivery
Post-Sales
&
Customer
Service
Pre-Sales
&
Solutions
Head
National
Account
Manager
High-Touch/ Mid-Market
Accounts
Support
Functions

29. OEM
Company
Direct Touch
• Strategic Integration
• Marketing
Channel
Partner
SME
Customer
• Training
• Empowerment
• SLA/ Business
• Service – L2/ L3
• Consulting
• Sales
• Service – L1
• Consulting
C-Sat, Perception of partner, Brand value,
High frequency sales update (daily)

30. System
Integrator/
Partner
Relations
Marketing
operations
Projects
Finance Delivery
National
Sales Head
Regional
Sales Head
Post-Sales
&
Customer
Service
Pre-Sales
&
Solutions
Account
Manager
SME
Accounts
Support
Functions
Channel/ Partners

32.  Distributor/Stockiest/MTO
 Territory Manager/ Zonal structure based on geography
 Brand creation thru mass media
 Feet on street/ retail reach
 Promotions
◦ Customer pull plans and schemes
◦ Distributor/dealer push plans and incentive schemes
 Price Driven, premium thru product differentiation and
positioning
 Place – availability at customer convenience
 Product – flavors/ denominations
 Tight MIS and cash flow management
 Stringent monitoring and continuous availability of committed
service level

33. National Sales Common Roles
System
Integrator/
Partner
Relations
Marketing
Operations
Finance
Projects
Delivery
Head
Contact
Centre
Pre-Sales
&
Solutions
Territory
Account
Manager
Regional
Sales Head
Distributors/ Stockists
Retails/ Shops/ Point of Sale
Consumers