1. Business Marketing
Part-II
Answer any Two Questions: {20 Marks}
1. Define B2B Marketing and bring out its Unique Characteristics. Also explain
differences between B2B and B2C Marketing.
Ans- B2B marketing can be defined as a form of transactions between business such as
involving a manufacturer and wholesaler or a wholesaler and retailer.
B2B can be use for transaction between business such as one involving a manufacturer
and wholesaler or a wholesaler and retailer
B2b can be done between companies rather than between a company and a individual
consumer.
Unique characteristics of B2b are-
Geographic Market Concentration
• Business market more concentrated than consumer market
• Example: Companies that sell to the federal government are
often located near main Cities or Metros Eg: B’lore, Delhi. etc
• Businesses becoming less geographically concentrated as
Internet technology improves.
Sizes of Orders and Number of Buyers
• Business market has smaller number of buyers than consumer
market but in huge/big Volume
• Many buyers are large organizations, such as Walmart, Future
Group, Big Industries & IT cos., etc.,
B2B
a)B2B has a greater sales and purchase volume.
b)B2B has few numbers of buyers.
c)Size of individual buyers is larger
d)B2B makes closer buyer seller relationships
e)B2B has more direct nature of channel
f)B2B has multiple buying influences
g)B2B use more complex type of negotiations
h)B2B use personal selling method.
2. B2C
a) B2C has a smaller sales and smaller purchase volume
b) B2C has many numbers of buyers
c) Size of individual buyers is smaller.
d) B2C makes more impersonal buyer seller relationship
e) B2C has less direct nature of channel
f) B2C has single/multiple buying influences
g) B2C use simpler type of negotiations
h) B2C use advertising promotion method
2. Explain with diagram steps in the ‘Buyer Decision Making’ Process and its implications
in B2B Customer Behaviour.
Steps in B2B buying process are:-
a) Anticipate a Problem/Need/ Opportunity& a general solution
Example: Needing to provide a good cup of coffee to a firm’s employees
b) Determine the characteristics and quantity of a needed good or service
Example Offering a coffee system that brews one cup of
coffee at a time according to each employee’s preference
c) Describe characteristics and the quantity of a needed good or service
Example- Firms need a simple system for brewing a good cup of coffee;
quantity requirements can be easily correlated to the number of coffee drinkers
d) Search for qualify potential sources
Choice of supplier may be relatively straightforward or very complex
e) Acquire and analyse proposals
May involve competitive bidding especially if the buyer is government and public
agency
f) Evaluate proposals and select suppliers
Buyers choose the proposal best suited to their needs
Final choice involves trade-offs
3. g) Select an order routine
Buyer and vendor work out the best way to process future purchases
h) Obtain feedback and evaluate performance
Buyers measure vendors’ performance
Some firms rely on outside organizations to gather quality feedback
and summarize results
There are four key factors your sales people need to be aware of when it
comes to understanding B2B buying behaviour: status quo bias, loss aversion,
decision paralysis and the impact of early influence.
3. Briefly Explain any two of the following:
a) Derived Demand- The linkage between demand for a company’s output and its
resources such as machinery, components,supplies, and raw materials.
• Example: Demand for computer microprocessor chips is derived
from demand for personal computers
b) Joint Demand- Results when the demand for one business
product is related to the demand for another business product
used in combination with the first item.
• Example: If Construction demand comes down, it will affect
Cement, Plumbing and Electric market .
c) Off-Shoring Movement of high-wage jobs from one
country to lower-cost overseas locations.
• Example: China makes two-thirds of the world’s copiers, microwaves,
DVD players, and shoes, and virtually all of the world’s toys.
• Allows firms to concentrate their resources on their core
business and access specialized talent or expertise.
d) Out-shoring- Using outside vendors to provide goods and services formerly
produced in-house.
• Commonly outshore for three reasons: Cost reduction,
Quality and Speed of Software maintenance and
Development, and greater value.
e) Reciprocity in Business Market – Reciprocity in business marketing describes
a situation in which two businesses promote each other in order to gain a mutual
benefit.
