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THE
SIGNIFICANCE
OF B2B
MARKETING
AGENDA
The significance of b2b marketing
Significance of Supply/ Demand & Value Chain
Characteristics of Organizational Market
Significance of Relationships & Networks
Supply/Demand Chain Ethics
DEFINING B2B
MARKETING
The significance of b2b marketing 3
The term 'business-to-business marketing is used to describe
the marketing activities of any kind of organization which
has exchange relationships with other organizations or
businesses
BUSINESS OPPORTUNITIES
ARE LIKE BUSES. THERE'S
ALWAYS ANOTHER ONE
COMING.
5
“
Richard Branson ”
SIGNIFICANCE OF B2B MARKETING
The significance of b2b marketing 6
1
Upstream inter-
organizational
trading supports
almost every end-
user market
2
Key B2B activities
are carried out
'behind the scenes
of most B2C
experiences
3
B2C marketers are
learning from B2B
marketing practices
4
B2B activities make a
major contribution
to most national
economies
5 & 6
Purchasing power
of private & public sector
organizations can be huge
B2B exchanges have
a greater impact. on people's
lives than B2C trading
VALUE CHAINS
The significance of b2b marketing 7
A requirement of the supply/demand chain is that each
participating firm adds value in someway to the goods
flowing down it
SCM VS DCM
The significance of b2b marketing 8
• Demand chain management (DCM) is an alternative approach
to supply chain management (SCM) that centers on the customer’s
needs and expectations first. Then, DCM works backward to
connect those needs to the supply side of your business.
• Unlike supply chain management, which is focused on supply
(like finding retailers who can put goods in customers’hands),
demand chain management flips the script in the value chain
by starting with the customer’s needs.
• The supply chain asks: How can I get customers to buy the
inventory I ordered?
• The demand chain asks: Am I sourcing enough of the
products my customers want?
ORGANIZATION MAIN ACTIVITIES
9
MOVING PARTS
& MATERIALS
MANUFACTURING
MOVING
FINISHED
PRODUCTS
MARKETING &
SALES
PROVIDING
SERVICES
Purchasing Research &
Development
Personnel Organizational
infrastructure
Supporting
Activities
ELEMENTS OF VALUE CHAIN
CHARACTERISTICS OF B2B MARKETS
The significance of b2b marketing 10
1
The size of the
market
2
International
aspects of
business
3
Concentration
of buyer power
4
The nature of
demand
5
Buying processes
and decision-
making
SIGNIFICANCE OF
RELATIONSHIP &
NETWORKS
11
RELATIONSHIP MARKETING
(RM)
Inter-organizational relationship (IOR) management is thus an
important part of strategy in business markets. Collaboration between
firms over the development, supply, and support of products and services
is a core element of B2B marketing and S/DCM
INTER ORGANIZATIONAL
RELATIONSHIP (IOR)
SIGNIFICANCE OF RELATIONSHIP
& NETWORKS
The significance of b2b marketing
12
1
Shifting from
short-term
transactions
To long term
relationships
2 3
• Needing to build
relationships with
network of
stakeholders
Inter-firm
collaboration
underpinning
effective S/DCM
.
SIGNIFICANCE OF RELATIONSHIP
& NETWORKS
The significance of b2b marketing
13
4
Increasing awareness of
importance of
personnel/social
Networks
SUPPLY/DEMAND
CHAIN ETHICS
The significance of b2b marketing 14
Ethical concerns are becoming an increasingly
important element of B2B marketing and
purchasing as organizational stakeholders begin to
question how their firms have achieved their
trading results
ETHICAL ISSUES IN S/DCM
The significance of b2b marketing
15
1
Questionable
costs of supply
chain efficiency
2 3
Contribution of B2B
marketers to
creating 'bid-down,
contract-out' chains
Debates over
fairness in global
supply chains
ETHICAL ISSUES IN S/DCM
The significance of b2b marketing
16
4
Unethical practices
in B2B negotiations
& exchanges
SUMMARY
The significance of b2b marketing 17
• The extent to which business-to-business (B2B) markets pervade the global
and, indeed, local economy.
• How we define B2B marketing in terms of exchange activities between
organizations, and what this may mean for marketing managers.
• How the concepts of the supply chain, the demand chain, and the value chain
are inter- related in B2B marketing.
• The extent to which organizational markets differ from, and are also related
to, consumer markets.
• How our thinking about B2B marketing encompasses relationships and
networks as well as basic buyer-seller transactions.
• How ethical considerations can affect the management of supply/demand
chain relationships.
THANK YOU
M. Ussama Majeed

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The significance of b2b marketing chapter 1.pdf

  • 2. AGENDA The significance of b2b marketing Significance of Supply/ Demand & Value Chain Characteristics of Organizational Market Significance of Relationships & Networks Supply/Demand Chain Ethics
  • 3. DEFINING B2B MARKETING The significance of b2b marketing 3 The term 'business-to-business marketing is used to describe the marketing activities of any kind of organization which has exchange relationships with other organizations or businesses
  • 4.
  • 5. BUSINESS OPPORTUNITIES ARE LIKE BUSES. THERE'S ALWAYS ANOTHER ONE COMING. 5 “ Richard Branson ”
  • 6. SIGNIFICANCE OF B2B MARKETING The significance of b2b marketing 6 1 Upstream inter- organizational trading supports almost every end- user market 2 Key B2B activities are carried out 'behind the scenes of most B2C experiences 3 B2C marketers are learning from B2B marketing practices 4 B2B activities make a major contribution to most national economies 5 & 6 Purchasing power of private & public sector organizations can be huge B2B exchanges have a greater impact. on people's lives than B2C trading
  • 7. VALUE CHAINS The significance of b2b marketing 7 A requirement of the supply/demand chain is that each participating firm adds value in someway to the goods flowing down it
  • 8. SCM VS DCM The significance of b2b marketing 8 • Demand chain management (DCM) is an alternative approach to supply chain management (SCM) that centers on the customer’s needs and expectations first. Then, DCM works backward to connect those needs to the supply side of your business. • Unlike supply chain management, which is focused on supply (like finding retailers who can put goods in customers’hands), demand chain management flips the script in the value chain by starting with the customer’s needs. • The supply chain asks: How can I get customers to buy the inventory I ordered? • The demand chain asks: Am I sourcing enough of the products my customers want?
  • 9. ORGANIZATION MAIN ACTIVITIES 9 MOVING PARTS & MATERIALS MANUFACTURING MOVING FINISHED PRODUCTS MARKETING & SALES PROVIDING SERVICES Purchasing Research & Development Personnel Organizational infrastructure Supporting Activities ELEMENTS OF VALUE CHAIN
  • 10. CHARACTERISTICS OF B2B MARKETS The significance of b2b marketing 10 1 The size of the market 2 International aspects of business 3 Concentration of buyer power 4 The nature of demand 5 Buying processes and decision- making
  • 11. SIGNIFICANCE OF RELATIONSHIP & NETWORKS 11 RELATIONSHIP MARKETING (RM) Inter-organizational relationship (IOR) management is thus an important part of strategy in business markets. Collaboration between firms over the development, supply, and support of products and services is a core element of B2B marketing and S/DCM INTER ORGANIZATIONAL RELATIONSHIP (IOR)
  • 12. SIGNIFICANCE OF RELATIONSHIP & NETWORKS The significance of b2b marketing 12 1 Shifting from short-term transactions To long term relationships 2 3 • Needing to build relationships with network of stakeholders Inter-firm collaboration underpinning effective S/DCM .
  • 13. SIGNIFICANCE OF RELATIONSHIP & NETWORKS The significance of b2b marketing 13 4 Increasing awareness of importance of personnel/social Networks
  • 14. SUPPLY/DEMAND CHAIN ETHICS The significance of b2b marketing 14 Ethical concerns are becoming an increasingly important element of B2B marketing and purchasing as organizational stakeholders begin to question how their firms have achieved their trading results
  • 15. ETHICAL ISSUES IN S/DCM The significance of b2b marketing 15 1 Questionable costs of supply chain efficiency 2 3 Contribution of B2B marketers to creating 'bid-down, contract-out' chains Debates over fairness in global supply chains
  • 16. ETHICAL ISSUES IN S/DCM The significance of b2b marketing 16 4 Unethical practices in B2B negotiations & exchanges
  • 17. SUMMARY The significance of b2b marketing 17 • The extent to which business-to-business (B2B) markets pervade the global and, indeed, local economy. • How we define B2B marketing in terms of exchange activities between organizations, and what this may mean for marketing managers. • How the concepts of the supply chain, the demand chain, and the value chain are inter- related in B2B marketing. • The extent to which organizational markets differ from, and are also related to, consumer markets. • How our thinking about B2B marketing encompasses relationships and networks as well as basic buyer-seller transactions. • How ethical considerations can affect the management of supply/demand chain relationships.