Definition business marketing
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Definition Business marketing. = The marketing of goods and services to commercial enterprises, governments and other nonprofit institutions For use in goods and services that they, I turn produce or For resale to other industrial customers. Definition 2. 2 essential aspects

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Definition Business marketing

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Definition business marketing

Definition Business marketing

=The marketing of goods and services to commercial enterprises, governments and other nonprofit institutions

For use in goods and services that they, I turn produce or

For resale to other industrial customers

Definition 2

Definition 2

  • 2 essential aspects

    -type customer

    -intended usage of theory and application theory based on a short case story

Type of customers

Type of customers

  • Government

  • Institutions

  • Companies




    Different buying behaviors

Intended usage

Intended usage



Differences bm cm

Differences BM_CM

  • Market structure

    -number of clients and suppliers

    -concentration more geographical concntr)


  • Nature of demand

    -derived demand( determined by the consumer demand)

    -inelastic (BM)

    -acceleration-effect (outsourcing)

Differences bm cm 2

Differences BM-CM 2

  • Baying behavior


    -motives: rational vs. emotional

    -purchasingproces, buying teams


    -size and frequency of purchases

  • Marketing instruments

  • 2 additional p’s

  • Different composition of mark.mix

Type of product

Type of product

  • Capital goods : equipment + systems

  • Materials

    -raw materials

    -processes materials


  • Usage goods MRO’s (maintenance rapid office suppliers)

  • Services

Marketing on business markets 1

Marketing on business markets 1

  • Marketing philosophies: 5x

  • When market oriented:

  • customers and his needs as starting point

    -Market scanning, marketinfo

    -internal circulation of info


    -segmentation/target group

    -adapt to changes in market

Marketing on business markets 2

Marketing on business markets 2

  • Market orientation, based on 2 concepts:

    -external focus on relevant market parties

    (who is customer? marketing system/competition/suppliers etc.)

    -Internal focus on international coordination

    (coordination with ‘non marketing” departments/informing, involve others )

Introduction market orientation

Introduction market orientation

  • Change of culture

  • Mentality

  • Resistance

  • Teambuilding

  • Support top management

  • Communication

  • Project groups

Transactions and relations

Transactions and relations

  • B/M/ = relationmarketing

    (personal contact,networking,cooperation)

    DIFFERENSES Transaction and Relationmarketing \

    -”always a share” vs. “always lost”

    -Low vs. high cost of change

    -Low vs high risk in case of wrong buy

    -Emphasis on product, person vs. technology, supplier

    -Purchase less vs. very important

Buying behavior

Buying behavior

  • Basis business marketing

  • Subjects: - Buying process

  • Buying situation

  • DMU and PSU

  • Purchasing portfolio and purchasing strategies

  • Supplier management

Buying process

Buying process

  • Product and market technical phase

    -problem recognition

    -specs determination

    -search for potential suppliers


  • Commercial phase

    -Negotiations, choice, contract

  • Administrative phase

    -order monitoring, evaluation, feedback

Buying situations

Buying situations

  • New task

  • Modified rebuy

  • Straight rebuy

Buy grid model

Buy grid model

  • Combination buying process and buying situations

  • Determination marketing strategy

    -Questions buy grid (combination important? Which departments c.q. persons involved? Which roles c.q. functions? Sources of information?)

Dmu psu


  • DMU: all persons involved in purchase. Role: - initiator/user/influencer/buyer/decider/gatekeeper/

  • PSU: - Team of specialists at seller’ side

    -adjust to level in DMU –Tend to closer cooperation


Buying motives

Buying motives

  • Task oriented

  • Non-task objectives

Buying strategies

Buying strategies

  • Strategic products: partnership

  • Leverage products: competitive bidding

  • Bottle neck products: security supply

  • Routine products: system contracting

Supplier management

Supplier Management

  • Changing character purchase: more strategic

    -less suppliers

    -Character of relation

    -more professional

  • Consequences for marketing policy suppliers

Market research

Market Research

  • No fundamental BM-CM

  • 3 main differences

    -derived demand

    -concentration of demand

    -DMU and buying process

Characteristics research bm

Characteristics research BM

  • Secondary data (desk)

    -more usage of secondary data

    -sources : internal/external

    -Standard Industrial Classification (SIC)

    - (SBI)

Characteristics research bm1

Characteristics Research BM

  • Collection primary data (field)

    -mainly qualitive research to find complex,

    buying motives

    -personal interviews

  • Technical knowledge required

    - Size of sample

Market segmentation

Market segmentation

  • Dividing market into groups of potential customers who are similar in needs, expectations, are response to marketing stimuli

  • Characteristics buyers

  • Criteria

Requirement segmentation

Requirement segmentation

  • Homogeneous

  • Reachable

  • Size

  • Measurable

  • Accessable

Segmentation criteria

Segmentation Criteria

  • Macro level (- organizational characteristics: SBI-code/size, usage/product application/geographical location.

    -Characteristics buying decision: buying situation/phase of buying process)

  • Micro level (- DMU characteristics: roles, decision procedures/ buying criteria/purchasing strategy.

    -Characteristics DMU – members: function, experience/ loyalty to supplier/ life style, personality/ age, sex, education, etc.

Product levels

Product levels

  • Core products (why is the customer buy?)

    -BM: solutions for problems

  • Tangible products (components, packaging, design)

  • Augmented(Service, delivery time)



  • Product orientation

  • User orientation

  • Production orientation

Types of product

Types of product

  • Catalogue products

  • According specification

  • Tailer made (unique product only for 1)

  • Services



  • Characteristics


    -production and consumption at the same moment


    -no stock

    -no property (of client)



  • Pre sale service

  • Transaction related service (customer service)

  • After sales service

Service bm cm

Service BM-CM

  • Tailor-made

  • Large technological component

  • Production at site of customers

  • More emphasis on business than person



  • Most strategic marketing instrument

  • Functions distribution channel

  • Main aspects distribution policy

Design channel structure

Design Channel structure

  • Distribution objectives (depends on marketing and goals/ availability/ lowest costs/ max. control/ max. saleseffort/ optimal back up/positive image/market feedback)

  • Limitations and conditions (right intermediates available?/ product characteristics/ customer needs/ budget/strategy competition/ geographical distribution clients/ tradition)

  • Channel tasks (commercial/ financial/ logistical)

  • Channel alternatives (length channel/number of levels/type intermediate-agent or industr.distributor/number of distr./#of chaneel

  • Evaluation and choice

Direct phisical distribution

Direct&Phisical distribution

  • Direct: (limited # of clients/ geographical concentration/large orders/high margin/ specialistic support required/JIT (just in time you need it) delivery

  • Physical: (Logistic management=materials management + physical distribution/ trade offs/ customer services/ make or buy (financials&commercials reasons, personal and equipment))

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