The document discusses key differences between business-to-business (B2B) and business-to-consumer (B2C) markets. It notes that B2B markets typically have fewer but larger buyers. Decision making units in B2B involve multiple people across departments, whereas B2C decisions often involve just one individual. The purchase process is also more formalized in B2B with requirements for detailed specifications and agreements. Common products and services in B2B include capital goods, raw materials, and business services. The document concludes with examples of exercises analyzing purchase and sales scenarios in B2B markets.

1. Marketing & communication
Nathalie De Boeck
Nathalie.deboeck@Arteveldehs.be

2. B2B MARKETING

3. Value chain by Porter

4.  Activities aimed at TRADE transactions
 Toimprove, accelerate, facilitate, …
 Between 2 or more parties
 Based upon:
 Reciprocity (rights & obligations) (= wederkerigheid)
 Agreement (mutual)
 Voluntarily (spontaneous)
MARKETING & SALES

5.  “All organizations that purchase raw materials
(bv: steel), natural resources (bv: water, gold)
and components / ingredients
of other products.
In order to re-sale or re-use them in
manufacturing another product.
What is a business market?

6.  Past: “Industrial marketing” = limiting
 Contains:
 Manufacturers
 Services
 Business organization
 …
  Differences with B2C market?
1. Structure of the market + demand
2. Decision making unit (DMU)
3. Types of decisions & decision making process
4. Other features of B2B
What is a business market?

7. DIFFERENCES WITH B2C MARKET

8.  Smaller number, but larger buyers
 Eg. Michelin in a B2C market:
 Potential market = Millions of car owners
 Eg. Michelin in a B2B market:
 Orders of a few car-brands / car manufacturers
1. Structure of the market + demand

9.  Inelastic demand
 = total demand has little influence on price changes,
especially on ST
 Eg. ↘ price of concrete:
 Won’t be a reason / motive for builders to suddenly start
buying more concrete
1. Structure of the market + demand
If the consumer is
not the buyer and
the end consumer
Huge price drop but
the demand will not
decrease that mutch
If the
consumer is
the buyer and
the end
consuemer ->
huge price
drop, the
demand will
increase a lot

10.  When organizations purchase goods  more
people are involved than in B2C
 Complex purchase  more people
partake indecision making process
 Purchase commissions:
 Technical experts
 Representation from top management
2. Decision Making Unit: DMU

11. 2. Decision Making Unit: DMU6 roles of the decision making unit:

12. 2. Decision Making Unit: DMU
Influencer:
Persuasive role
Specialists/ consultants -> recommendations
Initiatiors:
Recognize a need/ problem
Gatekeeper:
• Press stop/ go
• Proactive searching inforamtion/ delivering recommendations
-> Sombody in a company that has a role with an overvieuw in the
company

13. 2. Decision Making Unit: DMU
Buyer:
• Professional funciton: responsible for purchasing
• Series of criteria: judge potential products/ services
• Responsible for negotiation
Deciders:
• Making the final deal/ decision -> placing the final order
• Will review informatieon provided form lower down: buyer/
gatekeeper/ initiatiors
Users:
• Put product/ sevice intor operation
• Heavily involved in post-purchase evaluation

14.  ≠ no fixed / formal unit
 = mutual roles performed by different people
for a certain purchase
 Size & compilation varies
  Depends on product & buying situation
 Routine purchase = 1 person / buyer
 Complex / new purchase = different people from all
layers of the organization
2. Decision Making Unit: DMU

15. A. Complex purchase
 Large amounts of money
 Complex technological & economical reasoning
 Interaction between many ≠ people, on multiple
levels or the organization
 Process takes more time
 Eg. Purchase decision of a new software system can
take months – even years
3. Types of decisions & Decision
making process

16.  Purchase process is formalized
 Large / expensive purchase require:
 Detailed product descriptions / specifics
 Written buying orders
 Well considered supplier option(s)
 Formal agreement between parties
3. Types of decisions & Decision
making process

17.  Buyer & seller are strongly dependent on one
another
 B2C: significant distance between manufacturer and
customer
 B2B: in all phases of the purchase process → contact
with the customer
3. Types of decisions & Decision
making process

18.  Direct purchase:
 Purchasers buy directly from the manufacturer
 Without interaction of a third party
 Especially with expensive / technically complex products
 Eg. Airline company KLM
  buys an airplane directly from Boeing or Airbus industries
 Eg. Albert Heijn
  buys peanut butter, sauces, jams, … directly from Bestfoods
4. Other features of B2B

19.  “Principle of reciprocity”
 Suppliers that also buy products from you
 You will buy from companies that buy from you
 Eg. Paper manufacturer needs chemical substances in order
to produce the paper
  Will pick (one of the) companies that also buys
paper from them
4. Other features of B2B

20.  Leasing
 Companies lease more and purchase less
 Eg. Copy machine, …
  biggest car purchasers are leasing companies
 Advantages for the lease customer (licensee):
 More capital available (less investments)
 Always has the newest products / technology
 Better service
 Tax advantages
4. Other features of B2B

21. Other differences with B2C markets

22.  DERIVED demand
Who determines demand in B2B?
Manufacturer
of tin cans
Manufacturer
of soda
Manufacturer
of pet food
Manufacturer
of paint
Consumers
Painter
Steel
manufacturer

23.  DERIVED demand:
 Originates from the demand in consumer goods
Who determines demand in B2B?

24. PURCHASE CATEGORIES IN B2B

25.  3 types of purchase situations:
1. Routine purchase
2. Modified re-buy
-> We have bought it before but there are small differences
3. New task
Purchase situations in B2B?

26.  = straight re-buy
 Purchaser orders the same product / service from
the past without any chances
 Routine purchase process by sales department
 Based on past experiences
1. Routine purchase

27.  Existing supplier(s): automated order system
  Saves the purchaser time
 New supplier(s):
 Try to offer something new to the purchaser
 Try to take advantage from dissatisfied purchaser
 so that they may be given a chance /
opportunity to sell
1. Routine purchase

28.  Purchaser wants to make changes:
 Product specifications / features
 Prices
 Conditions
 Supplier(s)
 More people involved in the decision making process
2. Modified re-buy

29.  Existing supplier(s):
 Get nervous
 Feel pressured
 Want to keep the purchaser(s)
 New supplier(s):
 See opportunities
 Better offer  Try to win new purchaser(s)
2. Modified re-buy

30.  Purchaser buys product / service for the first
time
 The higher the costs  risk
 = higher number of decision makers
 = bigger attempts to collect information
 Best opportunity – but largest challenge in B2B
marketing
3. New task

31. PRODUCTS & SERVICES IN B2B

32. 1. Capital goods
 Infrastructure (buildings, manufacturing plants,
warehouses, …)
 Supporting goods (office furniture, trucks, …)
1. Materials (processed in products)
 Raw materials (oil, fuel, …)
 Processed materials (chemical substances, steel cables, …
 Components (recognizable in the end-product) bv: studs
op schoenen
Products / services in B2B

33. 3. Services
 Marketing- & communication agencies
 Maintenance contracts (heating, A/C, IT, …)
Products / services in B2B

34. WHAT INFLUENCES BUYERS IN B2B?

35. 1. Surrounding factors
2. Organizational factors
3. Interpersonal factors
4. Personal factors
Influences on purchasers / DMU?

36.  = factors in the (current & expected) economic
environment:
 Primary demand
 Economic development
 Costs of financial means (loans, …)
 Technological & political developments
 Competition
 Chance / bad luck
1. Surrounding factors

37.  = company’s objectives, policy, procedures,
structure,…
 Eg. Long term contracts
 Eg. Just-in-time production systems:
 Big impact on buying procedure of companies
2. Organizational factors

38.  DMU can contain multiple ‘members’ → who
can influence one another
 = group dynamics
 Usually very subtle
3. Interpersonal factors

39.  = personal motives, perception, preferences, …
 Eg. Young, highly educated buyers vs initiative,
more experienced buyers
4. Personal factors

40. CASE  UP TO YOU!

41. A. Purchase: Fleet forklifts
B. Sale: Sales representative of “Standaard
boekhandel Publishing”
C. Sale: Bart, self-employed, gives sales
workshops / trainings to SME’s
 Form groups  discuss exercise
 Give a short pitch to the class on your exercise
Exercise: Purchase vs sale: pick one

42.  FM Foods has a large fleet of forklifts dating from
2010.
 They sell all kinds of food products to a large
distribution & warehouse company.
 FM Foods needs to buy a new fleet of forklifts.
 Who is part of the DMU? Name & explain all elements!
 What are the different needs of the different participants
of the DMU?
 How will you (= salesperson of forklifts) try to meet the
different needs of the DMU?
Use 1 DMU member you want to convince with your sales
pitch
Case A: Purchase: Fleet forklifts

43.  Artevelde is a business account from “Standaard
boekhandel” and buys books and other study material.
 Each year, “Standaard Boekhandel” issues new books.
 Obviously, they would like a large customer like
Artevelde to buy them!
 Who is part of the DMU? Name & explain all elements!
 What are the different needs of the different participants of
the DMU?
 How will you (= sales representative of “Standaard
Boekhandel) try to meet the different needs of the DMU?
Use 1 DMU members you want to convince with your sales
pitch
Case B: Sales representative of “Lannoo
Publishing”

44.  Bart, self-employed, gives social media workshops /
trainings to SME’s
 He especially tries to offer his services to start-ups, that
have little or no marketing / social media experience.
His ideal target customer is e.g. an accountant,
plumber, electrician, clothing retailer, …
 Who is part of the DMU? Name & explain all elements!
 What are the different needs of the different participants of
the DMU?
 How will you (= Bart, giving the sales trainings) try to meet
the different needs of the DMU? Use 1 DMU member you
want to convince with your sales pitch
Case C: Sale: sales training / workshops

45.  What elements are important to your assignment?
 How to approach B2B companies?
 How to convince?
 What does the DMU of a possible B2B company / partner
look like?
 = what will be our B2Bstrategy
 Make sure you understand the difference between B2B &
B2C!
B2B marketing & your assignment