The document provides an overview of business-to-business (B2B) marketing. It defines business marketing and outlines key differences between B2B and consumer marketing. Specifically, it notes that B2B demand is derived, customers are concentrated, the buying process is complex, technology and customization are important, and total cost of ownership is a key factor. The document also discusses B2B products/services, markets, customers, procurement processes, and challenges of government and institutional procurement.

1. Business (B2B) Marketing IFMR – PGDM II Yr. (2009-10) Module 1 Overview of Business marketing S.Balachandran July 2009

4. B2B Goods & Services July 2009 © S.Balachandran of 37

5. Industrial Production Categories July 2009 © S.Balachandran of 37

6. Business Services July 2009 © S.Balachandran of 37

9. Value Equation July 2009 © S.Balachandran ‘ Product’ or ‘Service’ satisfies a ‘need’ or ‘want’ by providing ‘value’. Attributes/ Features BENEFITS VALUE NETT VALUE = BENEFITS - COSTS of 37 VALUE DELIVERY SYSTEM

10. Value Creation & Delivery July 2009 © S.Balachandran of 37

16. Value Hierarchy – Product Levels July 2009 © S.Balachandran of 37 CORE BENEFIT Fundemental Benefit customer is really buying BASIC PRODUCT Built around Core Benefit EXPECTED PRODUCT Attribute & conditions buyers Normally expect AUGMENTED PRODUCT Exceeds Customer Expectations POTENTIAL PRODUCT All possible augmentations & Transformations product might Undergo in future Customer Delight !

17. Framework for B2B Marketing July 2009 © S.Balachandran of 37

18. Key Differences:B2B vs Consumer Marketing July 2009 © S.Balachandran of 37 MARKETING CUSTOMER MANUFACTURING External Environment Internal Environment External Linkage Internal Linkage Derived Demand Complex Buying Process Concentrated Customer Base Emphasis on Technology High Level of Customisation Made to Order

24. Differences in Emphasis : B2B vs B2C July 2009 © S.Balachandran of 37

28. Distinctive Capabilities for B2B Marketing July 2009 © S.Balachandran of 37 Supply Chain Management Mgmt. of Strategic Alliances Mgmt. of Hybrid Channels

29. Goals of Purchasing July 2009 © S.Balachandran of 37

30. Total Cost of Ownership July 2009 © S.Balachandran Factors that drive total cost. Acquiring and managing costs. Quality, reliability over the life cycle. Value of product to firm/customers. of 37

31. Procurement Development July 2009 © S.Balachandran of 37 Source Negotiate Manage Info & Logistics Value Analysis & Complexity mgmt. Strategic Partnership