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B2 B Bitm


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B2 B Bitm

  1. 1. Business to Business (B2B) Presented By LOKESH GUPTA RAKESH SONAR MANISH PANDEY VIKASH SHARMA BAIJNATH MANDAL ADITYA MAHAKULKAR Balaji Institute Of Telecom Management (BITM) Pune
  2. 2. <ul><li>B2B Defined </li></ul><ul><li>Organizational sales and purchases of goods and services to support production of other products, to facilitate daily company operations, or for resale. </li></ul><ul><li>transactions between businesses. </li></ul><ul><li>both the buyer and the seller are business entity. </li></ul><ul><li>Like between a manufacturer and a wholesaler or a wholesaler and a retailer. </li></ul>
  3. 3. Flows within a B2B market
  4. 4. <ul><li>Nature of demand - derived, joint, inelastic. </li></ul><ul><li>Buyer-seller relationships. </li></ul><ul><li>Purchase Decision Process. </li></ul><ul><li>Sizes and Numbers of Buyers. </li></ul>Characteristics of B2B markets
  5. 5. <ul><li>Nature of Demand </li></ul><ul><li>Derived Demand : demand for a resource that results from demand for the goods and services that are produced by that resource. </li></ul><ul><li>Joint Demand : demand for a product that depends on the demand for another product used in combination with it. </li></ul><ul><li>Inelastic Demand : demand that, throughout an industry, will not change significantly due to a price change. </li></ul>
  6. 6. <ul><li>Buyer-Seller Relationships </li></ul><ul><li>More intense than consumer relationships </li></ul><ul><ul><li>Require better communication among the organizations’ personnel. </li></ul></ul><ul><ul><li>Primary goal of B2B relationships is to provide advantages that no other seller can, for instance: </li></ul></ul><ul><ul><ul><li>Lower-prices </li></ul></ul></ul><ul><ul><ul><li>Quicker delivery </li></ul></ul></ul><ul><ul><ul><li>Better quality and reliability </li></ul></ul></ul><ul><ul><ul><li>More favorable financing terms </li></ul></ul></ul>
  7. 7. <ul><li>The Purchase Decision Process </li></ul><ul><li>Businesses must understand the dynamics of the organizational purchasing process. </li></ul><ul><ul><li>Decision-makers at several layers may influence final orders. </li></ul></ul><ul><ul><li>Process is more formal and professional than with consumers </li></ul></ul><ul><li>Sizes and Numbers of Buyers </li></ul><ul><li>Business market features a limited number of buyers. </li></ul><ul><ul><li>Use statistical information to estimate the size and characteristics of business markets is available </li></ul></ul>
  8. 8. Business Categories Government Markets Reseller Markets Federal, state, and local Wholesalers and retailers Institutional Markets Hospitals (profit and nonprofit), educational and religious institutions, and trade associations. Business Firms Manufacturers of tangible goods and firms that provide services such as health care, entertainment, and transportation
  9. 9. The Buying Process Recognize problem or opportunity Determine desired product characteristics and quantity Describe desired product specifications Make purchases and evaluate performance Evaluate and select suppliers Locate and qualify suppliers
  10. 10. Stage 1: Anticipate a Problem/Need/Opportunity and a General Solution • Example: Desktops cannot be used anywhere the user want. Stage 2: Determine the Characteristics and Quantity of a Needed Good or Service •  Example: Offering a Laptop system that are mobile. Can use any where the user want. Stage 3: Describe Characteristics and the Quantity of a Needed Good or Service •  Example: Firms need the laptops that fulfill the requirement of the customer. also anticipate the quantity of that product.
  11. 11. Stage 4: Search for and Qualify Potential Sources • Choice of supplier may be fairly straightforward or very complex. Stage 5: Acquire and Analyze Proposals •  May involve competitive bidding, especially if the buyer is the government or a public agency. Stage 6: Evaluate Proposals and Select Suppliers •  Buyers choose proposal best suited to their needs. •  Final choice may involve trade-offs between feature such as price, reliability, quality, and order accuracy.
  12. 12. Stage 7: Select an Order Routine • Buyer and vendor work out best way to process future purchases. Stage 8: Obtain Feedback and Evaluate Performance •  Buyers measure vendors’ performance. •  Larger firms are more likely to use formal evaluation procedures. •  Some firms rely on outside organizations to gather quality feedback and summarize results.
  14. 14. DEVELOPING EFFECTIVE B2B MARKETING STRATEGIES <ul><li>Formalized purchasing procedures </li></ul><ul><ul><li>Bids: written sales proposals from vendor </li></ul></ul><ul><ul><li>Specifications: written descriptions of needed goods or services </li></ul></ul><ul><li>Group purchasing is an important factor </li></ul>Challenges of Government and Institutional Markets
  15. 15. Classifying Business Buying Situations <ul><li>Recurring purchase decision in which a customer repurchases a good or service that has performed satisfactorily in the past </li></ul>Straight Rebuy <ul><li>Purchase decision in which a purchaser is willing to reevaluate available options for repurchasing a good or service </li></ul>Modified Rebuy <ul><li>First-time or unique purchase situation that requires considerable effort by the decision Makers </li></ul>New-Task Buying
  16. 16. <ul><li>Who is the Customer? </li></ul><ul><li>B2B Organization. </li></ul><ul><li>B2C Individual/Household </li></ul><ul><li>Volume of Transaction? </li></ul><ul><li>B2B much higher. </li></ul><ul><li>B2C very less as compare to B2B. </li></ul><ul><li>What does the customer do with your product? </li></ul><ul><li>B2B Uses it for business purpose to make another product. </li></ul><ul><li>B2C Use it for personal purpose </li></ul><ul><li>What are customers needs? </li></ul><ul><li>B2B Satisfies organizational goals profit maximization, cost reduction, </li></ul><ul><li>performance improvement. </li></ul><ul><li>B2C Satisfies personal needs. </li></ul>Difference Between B2B And B2C
  17. 17. <ul><li>Decision making? </li></ul><ul><li>B2B Involve Large groups in purchasing decisions. </li></ul><ul><li>B2C involve family opinions and decisions. </li></ul><ul><li>Transaction involves? </li></ul><ul><li>B2B transactions involving subcomponent ,raw materials or intermediate product. </li></ul><ul><li>B2C specifically sale of the finished product to the end customer. </li></ul><ul><li>Switching? </li></ul><ul><li>B2B Find switching to another supplier difficult. </li></ul><ul><li>B2C Find switching to another supplier easy. </li></ul>
  18. 18. <ul><li>How many and what type of customer? </li></ul><ul><li>B2B Number of customers- Limited & well known & profiled customer. </li></ul><ul><li>B2C Number of customers- Unlimited & anonymous. </li></ul><ul><li>What are the key strategy difference? </li></ul><ul><li>B2B Personal selling, relationship building, differentiated pricing. </li></ul><ul><li>B2C TV advertising, distribution through retailers, fixed pricing. </li></ul>